TMED vs. TCAF

Last updated Jun 25, 2026

TMED (T. Rowe Price Health Care ETF) and TCAF (T. Rowe Price Capital Appreciation Equity ETF) are both exchange-traded funds - TMED is a Health & Biotech Equities fund managed by T. Rowe Price, while TCAF is a Large Cap Blend Equities fund actively managed by T. Rowe Price. Over the past year, TMED returned 33.64% vs 16.35% for TCAF. A 0.53 correlation means they provide meaningful diversification when combined. TMED charges 0.44%/yr vs 0.31%/yr for TCAF.

Performance

TMED vs. TCAF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price Health Care ETF (TMED) and T. Rowe Price Capital Appreciation Equity ETF (TCAF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TMED achieves a 10.47% return, which is significantly higher than TCAF's 4.89% return.

TMED

• 1D: 1.71%
• 1M: 5.92%
• YTD: 10.47%
• 6M: 9.58%
• 1Y: 33.64%
• 3Y*: —
• 5Y*: —
• 10Y*: —

TCAF

• 1D: 0.33%
• 1M: -0.87%
• YTD: 4.89%
• 6M: 4.05%
• 1Y: 16.35%
• 3Y*: 17.54%
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

TMED vs. TCAF - Yearly Performance Comparison

	2026 (YTD)	2025
TMED T. Rowe Price Health Care ETF	10.47%	19.49%
TCAF T. Rowe Price Capital Appreciation Equity ETF	4.89%	11.63%

Correlation

The correlation between TMED and TCAF is 0.52, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.52
Correlation (All Time) Calculated using the full available price history since Jun 12, 2025	0.53

The correlation between TMED and TCAF has been stable across timeframes, ranging from 0.52 to 0.53 - a consistent structural relationship.

Return for Risk

TMED vs. TCAF — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

TMED

TMED Risk / Return Rank: 66
TMED Sharpe Ratio Rank: 66
TMED Sortino Ratio Rank: 69
TMED Omega Ratio Rank: 61
TMED Calmar Ratio Rank: 70
TMED Martin Ratio Rank: 64

TCAF

TCAF Risk / Return Rank: 39
TCAF Sharpe Ratio Rank: 43
TCAF Sortino Ratio Rank: 41
TCAF Omega Ratio Rank: 42
TCAF Calmar Ratio Rank: 31
TCAF Martin Ratio Rank: 39

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

TMED vs. TCAF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price Health Care ETF (TMED) and T. Rowe Price Capital Appreciation Equity ETF (TCAF). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	TMED	TCAF	Difference
Sharpe ratio: Return per unit of total volatility	1.86	1.37	+0.49
Sortino ratio: Return per unit of downside risk	2.72	1.91	+0.81
Omega ratio: Gain probability vs. loss probability	1.32	1.25	+0.07
Calmar ratio: Return relative to maximum drawdown	3.04	1.45	+1.59
Martin ratio: Return relative to average drawdown	9.95	5.68	+4.27

TMED vs. TCAF - Sharpe Ratio Comparison

The current TMED Sharpe Ratio is 1.86, which is higher than the TCAF Sharpe Ratio of 1.37. The chart below compares the historical Sharpe Ratios of TMED and TCAF, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

TMED vs. TCAF - Drawdown Comparison

The maximum TMED drawdown since its inception was -11.11%, smaller than the maximum TCAF drawdown of -16.37%. Use the drawdown chart below to compare losses from any high point for TMED and TCAF.

Drawdown Indicators

	TMED	TCAF	Difference
Max Drawdown Largest peak-to-trough decline	-11.11%	-16.37%	+5.26%
Max Drawdown (1Y) Largest decline over 1 year	-11.11%	-11.33%	+0.22%
Max Drawdown (3Y) Largest decline over 3 years	—	-16.37%	—
Current Drawdown Current decline from peak	0.00%	-2.48%	+2.48%
Average Drawdown Average peak-to-trough decline	-2.47%	-2.07%	-0.40%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.39%	2.88%	+0.51%

Volatility

TMED vs. TCAF - Volatility Comparison

T. Rowe Price Health Care ETF (TMED) has a higher volatility of 6.00% compared to T. Rowe Price Capital Appreciation Equity ETF (TCAF) at 4.22%. This indicates that TMED's price experiences larger fluctuations and is considered to be riskier than TCAF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TMED	TCAF	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.00%	4.22%	+1.78%
Volatility (6M) Calculated over the trailing 6-month period	13.61%	9.41%	+4.20%
Volatility (1Y) Calculated over the trailing 1-year period	18.21%	12.00%	+6.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.08%	14.01%	+4.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.08%	14.01%	+4.07%

TMED vs. TCAF - Expense Ratio Comparison

TMED has a 0.44% expense ratio, which is higher than TCAF's 0.31% expense ratio.

Dividends

TMED vs. TCAF - Dividend Comparison

TMED's dividend yield for the trailing twelve months is around 0.49%, more than TCAF's 0.48% yield.

Position	TTM	2025	2024	2023
TCAF T. Rowe Price Capital Appreciation Equity ETF	0.48%	0.50%	0.43%	0.26%
TMED T. Rowe Price Health Care ETF	0.49%	0.54%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TMED and TCAF in my portfolio?

TMED and TCAF have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TMED or TCAF?

TMED has higher volatility (6.00%) compared to TCAF (4.22%). In terms of maximum drawdown, TMED dropped -11.11% vs TCAF's -16.37%.

Which ETF is better, TMED or TCAF?

On 1-year performance, TMED leads with 33.64% vs 16.35% for TCAF. On fees, TCAF is cheaper at 0.31% per year. On volatility, TCAF has been the lower-risk option at 4.22%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TMED or TCAF?

Over the 1-year period, TMED has performed better with a 33.64% return vs 16.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TMED or TCAF?

TCAF is cheaper with a 0.31% expense ratio, compared with 0.44% for TMED.

Which ETF pays a higher dividend yield, TMED or TCAF?

TMED has the higher dividend yield at 0.49%, compared with 0.48% for TCAF.

What is the main difference between TMED and TCAF?

TMED is categorized as Health & Biotech Equities, while TCAF is Large Cap Blend Equities. Their fees differ too: 0.44% for TMED and 0.31% for TCAF.

Which has better risk-adjusted returns?

TMED currently has the higher Sharpe Ratio (1.86 vs 1.37), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.