T. Rowe Price Total Return ETF (TOTR) Exchange: NYSE ARCA

The fund invests in a diversified portfolio of bonds and other debt instruments.The fund has considerable flexibility in seeking strong returns and its portfolio is constructed witha goal of being able to respond to a wide variety of market conditions. The fund’s investments typicallyinclude, but are not limited to, debt instruments issued by the U.S. government and its agencies (suchas U.S. Treasury securities), corporate bonds, bank loans (which represent an interest in amountsowed by a borrower to a syndicate of lenders), and various types of mortgage-backed and asset-backedsecurities.Thefund may invest up to 35% of its net assets in corporate bonds and other debt instruments that are ratednon-investment-grade (below BBB, or an equivalent rating), commonly known as junk bonds or high yieldbonds, by each of the rating agencies that have assigned a rating to the security or, if unrated, deemedby T. Rowe Price to be non-investment-grade. The fund may purchase securities of any credit rating,including distressed and defaulted securities. If a holding is split rated (i.e., rated investment gradeby at least one rating agency and non-investment-grade by another rating agency), the higher rating willbe used for purposes of this requirement.The fund may invest in securities issued by both U.S. andnon-U.S. issuers, including issuers in emerging market countries. Up to 20% of the fund’s net assetscan be invested in non-U.S. dollar-denominated holdings, and there is no limit on the fund’s investmentsin U.S. dollar-denominated securities of foreign issuers, including issuers in emerging markets. Thefund relies on a classification by an unaffiliated third-party data provider to determine which countriesare emerging markets. The fund may also gain exposure to currencies through derivative instruments withoutholding any bonds or other securities denominated in those particular currencies.The fund may purchasesecurities of any maturity and there are no overall maturity restrictions for the portfolio. The fund’sweighted average maturity and duration will generally shift in response to current interest rates andexpected interest rate changes.The fund may purchase or sell mortgage-backed securities on a delayed deliveryor forward commitment basis through the “to-be-announced” (TBA) market. With TBA transactions, theparticular securities to be delivered are not identified at the trade date, but the delivered securitiesmust meet specified terms and standards. The fund will generally enter into TBA transactions with theintention of taking possession of the underlying mortgage-backed securities. However, in an effort toobtain underlying mortgage-backed securities on more preferable terms or to enhance returns, the fundmay extend the settlement by entering into “dollar roll” transactions in which the fund sells mortgage-backedsecurities and simultaneously agrees to purchase substantially similar securities on a future date. Thefund also expects to engage in short sales of TBA mortgages, including short sales on TBA mortgages thefund does not own, to potentially enhance returns or manage risk. While most assets will typically be investeddirectly in bonds and other debt instruments, the fund also uses interest rate futures; interest rateswaps, credit default swaps, and currency swaps; forward currency exchange contracts; and options onany of those instruments to manage duration and tactically gain or limit exposure to certain areas ofthe markets. Interest rate futures are typically used to manage the fund’s exposure to interest ratechanges or to adjust portfolio duration. Interest rate swaps are also used to adjust portfolio duration,credit default swaps are used to protect the value of certain portfolio holdings or to manage the fund’soverall exposure to changes in credit quality, and currency swaps are used to respond to changes in currencyexchange rates. Forward currency exchange contracts are used to gain exposureto certain currencies expected to increase or decrease in value relative to other currencies or to protectthe fund’s foreign holdings from adverse currency movements relative to the U.S. dollar.When deciding whetherto adjust allocations among the various types of securities in which the fund may invest, the adviserweighs such factors as the outlook for inflation and the economy, expected interest rate movements, creditconditions, and the yield advantage that lower-rated bonds may offer over investment-grade bonds. Whenthere is a large yield difference between the various quality levels and the outlook warrants, the fundmay move down the credit scale and purchase lower-rated bonds with higher yields, such as junk bondsand emerging market bonds. When the difference is small or the outlook warrants, the fund may concentrateinvestments in higher-rated issues, such as Treasury securities.