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Is T. Rowe Price Mid-Cap Value (TRMCX) a Strong Mutual Fund Pick Right Now?
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If investors are looking at the Mid Cap Value fund category, T. Rowe Price Mid-Cap Value (TRMCX - Free Report) could be a potential option. TRMCX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
TRMCX is one of many Mid Cap Value mutual funds to choose from. Mid Cap Value funds usually invest in companies with a stock market valuation between $2 billion and $10 billion; these medium-sized firms possess strong value and income opportunities for investors.
History of Fund/Manager
TRMCX is a part of the T. Rowe Price family of funds, a company based out of Baltimore, MD. T. Rowe Price Mid-Cap Value debuted in June of 1996. Since then, TRMCX has accumulated assets of about $4.04 billion, according to the most recently available information. The fund's current manager, Vincent DeAugustino, has been in charge of the fund since May of 2022.
Performance
Of course, investors look for strong performance in funds. TRMCX has a 5-year annualized total return of 11.88% and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 8.1%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. TRMCX's standard deviation over the past three years is 19.37% compared to the category average of 15.14%. The standard deviation of the fund over the past 5 years is 21.94% compared to the category average of 16.59%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.05, so it is likely going to be more volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. TRMCX has generated a negative alpha over the past five years of -1.11, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is mostly on equities that are traded in the United States.
The mutual fund currently has 75.02% of its holdings in stocks, which have an average market capitalization of $18.95 billion. The fund has the heaviest exposure to the following market sectors:
Industrial Cyclical
Technology
Finance
With turnover at about 45.3%, this fund makes fewer trades than comparable funds.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, TRMCX is a no load fund. It has an expense ratio of 0.80% compared to the category average of 0.96%. From a cost perspective, TRMCX is actually cheaper than its peers.
While the minimum initial investment for the product is $2,500, investors should also note that each subsequent investment needs to be at least $100.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, T. Rowe Price Mid-Cap Value ( TRMCX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, T. Rowe Price Mid-Cap Value ( TRMCX ) looks like a good potential choice for investors right now.
Your research on the Mid Cap Value segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
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Is T. Rowe Price Mid-Cap Value (TRMCX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the Mid Cap Value fund category, T. Rowe Price Mid-Cap Value (TRMCX - Free Report) could be a potential option. TRMCX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
TRMCX is one of many Mid Cap Value mutual funds to choose from. Mid Cap Value funds usually invest in companies with a stock market valuation between $2 billion and $10 billion; these medium-sized firms possess strong value and income opportunities for investors.
History of Fund/Manager
TRMCX is a part of the T. Rowe Price family of funds, a company based out of Baltimore, MD. T. Rowe Price Mid-Cap Value debuted in June of 1996. Since then, TRMCX has accumulated assets of about $4.04 billion, according to the most recently available information. The fund's current manager, Vincent DeAugustino, has been in charge of the fund since May of 2022.
Performance
Of course, investors look for strong performance in funds. TRMCX has a 5-year annualized total return of 11.88% and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 8.1%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. TRMCX's standard deviation over the past three years is 19.37% compared to the category average of 15.14%. The standard deviation of the fund over the past 5 years is 21.94% compared to the category average of 16.59%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.05, so it is likely going to be more volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. TRMCX has generated a negative alpha over the past five years of -1.11, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is mostly on equities that are traded in the United States.
The mutual fund currently has 75.02% of its holdings in stocks, which have an average market capitalization of $18.95 billion. The fund has the heaviest exposure to the following market sectors:
- Industrial Cyclical
- Technology
- Finance
With turnover at about 45.3%, this fund makes fewer trades than comparable funds.Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, TRMCX is a no load fund. It has an expense ratio of 0.80% compared to the category average of 0.96%. From a cost perspective, TRMCX is actually cheaper than its peers.
While the minimum initial investment for the product is $2,500, investors should also note that each subsequent investment needs to be at least $100.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, T. Rowe Price Mid-Cap Value ( TRMCX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, T. Rowe Price Mid-Cap Value ( TRMCX ) looks like a good potential choice for investors right now.
Your research on the Mid Cap Value segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.