T. Rowe Price Launched New Emerging Markets Bond ETF
Investors now have access to a new actively managed fund targeting government and corporate debt.
Updated on Oct. 5, 2026 in Investing
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T. Rowe Price has introduced the Dynamic Emerging Markets Bond ETF, which now trades on the Nasdaq under the ticker symbol TDEM. This fund focuses on generating income and capital appreciation through a selection of government, corporate, and local currency bonds.
Why it matters
The fund seeks to provide investors with income and capital appreciation, filling a specific niche in fixed-income portfolios. It operates as an actively managed vehicle, allowing managers to adjust holdings based on macroeconomic views rather than following an index.
The new TDEM ETF carries an annual expense ratio of 0.45%. This release marks the 39th actively managed ETF managed by T. Rowe Price, following nine debuts in 2026.
The players
T. Rowe Price
A global investment management firm that provides mutual funds, sub-advisory services, and a growing line of actively managed exchange-traded funds.
Nasdaq
A global electronic marketplace for securities trading that lists thousands of company stocks and exchange-traded funds.
Leonard Kwan
An investment manager at T. Rowe Price who oversees bond portfolio allocations and strategy implementation.
Samy Muaddi
An investment manager at T. Rowe Price responsible for selecting individual bond holdings and macroeconomic analysis.
Richard Hall
An investment manager at T. Rowe Price who co-manages fixed-income strategy and portfolio construction.
The details
Managers Leonard Kwan, Samy Muaddi, and Richard Hall utilize a top-down allocation process to select individual bond holdings. Instead of tracking an index, the team adjusts the fund's strategy based on their macroeconomic outlook for emerging markets. The fund invests across a mix of government debt, corporate bonds, and local currency instruments to achieve its objectives.
Timeline
October 5, 2026: T. Rowe Price launched the TDEM ETF.
2026: Nine total T. Rowe Price ETFs debuted during the year.
Money Landscape
The introduction of the TDEM ETF follows a pattern of firms expanding their actively managed offerings under the regulatory framework established by the SEC's Rule 6c-11. This release marks another step in the industry trend toward converting traditional active strategies into the ETF format.
Investors considering this fund should review its 0.45% expense ratio against their own portfolio's cost basis and income objectives. Discuss the role of emerging market debt in your broader financial plan with a qualified financial professional to determine if this aligns with your risk tolerance.
The takeaway
The addition of TDEM provides a new vehicle for accessing emerging market debt through an active management strategy. Investors should track fund performance disclosures and compare them against their existing holdings to ensure they are meeting their long-term capital appreciation goals.
Further reading
Learn more about the fundamentals of fixed-income assets in our Investing section.
Source note: This article includes information reported by Advisor Perspectives.
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