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Is T. Rowe Price Instl Large Cap Core (TPLGX) a Strong Mutual Fund Pick Right Now?
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Large Cap Blend fund seekers should consider taking a look at T. Rowe Price Institutional Large Cap Core (TPLGX - Free Report) . TPLGX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We note that TPLGX is a Large Cap Blend option, an area loaded with different options. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a "buy and hold" mindset. Additionally, blended funds mix large, more established firms into their portfolios, giving investors exposure to value and growth opportunities.
History of Fund/Manager
TPLGX finds itself in the T. Rowe Price family, based out of Baltimore, MD. Since T. Rowe Price Institutional Large Cap Core made its debut in October of 2003, TPLGX has garnered more than $2.80 billion in assets. Larry J. Puglia is the fund's current manager and has held that role since October of 2003.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 19.04%, and it sits in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 14.93%, which places it in the top third during this time-frame.
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. TPLGX's standard deviation over the past three years is 12.27% compared to the category average of 10.51%. Looking at the past 5 years, the fund's standard deviation is 11.64% compared to the category average of 9.86%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should always remember the downsides to a potential investment, and this segment carries some risks one should be aware of. TPLGX lost 51.61% in the most recent bear market and underperformed its peer group by 2.04%. This could mean that the fund is a worse choice than comparable funds during a bear market.
And for investors concerned about the potential drawdown in a really bad calendar year, we can look back to 2008 for that figure. In its worst calendar year in a decade, the fund lost over 42.61%.
Nevertheless, investors should also note that the fund has a 5-year beta of 1.05, which means it is hypothetically 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. With a positive alpha of 2.91, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Investigating 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 largely on equities that are traded in the United States.
As of the last filing date, the mutual fund has 99.68% of its assets in stocks, which have an average market capitalization of $204.79 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Finance
Turnover is about 42%, so those in charge of the fund make fewer trades than the average comparable fund.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, TPLGX is a no load fund. It has an expense ratio of 0.57% compared to the category average of 1.03%. So, TPLGX is actually cheaper than its peers from a cost perspective.
This fund requires a minimum initial investment of $1 million, while there is no minimum for each subsequent investment.
Bottom Line
Overall, T. Rowe Price Institutional Large Cap Core TPLGX has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, T. Rowe Price Institutional Large Cap Core TPLGX looks like a good potential choice for investors right now.
This could just be the start of your research on TPLGX in the Large Cap Blend category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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Is T. Rowe Price Instl Large Cap Core (TPLGX) a Strong Mutual Fund Pick Right Now?
Large Cap Blend fund seekers should consider taking a look at T. Rowe Price Institutional Large Cap Core (TPLGX - Free Report) . TPLGX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We note that TPLGX is a Large Cap Blend option, an area loaded with different options. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a "buy and hold" mindset. Additionally, blended funds mix large, more established firms into their portfolios, giving investors exposure to value and growth opportunities.
History of Fund/Manager
TPLGX finds itself in the T. Rowe Price family, based out of Baltimore, MD. Since T. Rowe Price Institutional Large Cap Core made its debut in October of 2003, TPLGX has garnered more than $2.80 billion in assets. Larry J. Puglia is the fund's current manager and has held that role since October of 2003.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 19.04%, and it sits in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 14.93%, which places it in the top third during this time-frame.
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. TPLGX's standard deviation over the past three years is 12.27% compared to the category average of 10.51%. Looking at the past 5 years, the fund's standard deviation is 11.64% compared to the category average of 9.86%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should always remember the downsides to a potential investment, and this segment carries some risks one should be aware of. TPLGX lost 51.61% in the most recent bear market and underperformed its peer group by 2.04%. This could mean that the fund is a worse choice than comparable funds during a bear market.
And for investors concerned about the potential drawdown in a really bad calendar year, we can look back to 2008 for that figure. In its worst calendar year in a decade, the fund lost over 42.61%.
Nevertheless, investors should also note that the fund has a 5-year beta of 1.05, which means it is hypothetically 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. With a positive alpha of 2.91, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Investigating 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 largely on equities that are traded in the United States.
As of the last filing date, the mutual fund has 99.68% of its assets in stocks, which have an average market capitalization of $204.79 billion. The fund has the heaviest exposure to the following market sectors:
Turnover is about 42%, so those in charge of the fund make fewer trades than the average comparable fund.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, TPLGX is a no load fund. It has an expense ratio of 0.57% compared to the category average of 1.03%. So, TPLGX is actually cheaper than its peers from a cost perspective.
This fund requires a minimum initial investment of $1 million, while there is no minimum for each subsequent investment.
Bottom Line
Overall, T. Rowe Price Institutional Large Cap Core TPLGX has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, T. Rowe Price Institutional Large Cap Core TPLGX looks like a good potential choice for investors right now.
This could just be the start of your research on TPLGX in the Large Cap Blend category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.