If investors are looking at the Large Cap Value fund category, T. Rowe Price Value Fund (
TRVLX Quick Quote TRVLX - Free Report) could be a potential option. TRVLX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance. History of Fund/Manager
TRVLX is a part of the T. Rowe Price family of funds, a company based out of Baltimore, MD. Since T. Rowe Price Value Fund made its debut in September of 1994, TRVLX has garnered more than $27 billion in assets. The fund's current manager, Mark S. Finn, has been in charge of the fund since December of 2009.
Of course, investors look for strong performance in funds. TRVLX has a 5-year annualized total return of 14.88% and it sits 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 8.84% The fund's 3-year annualized total return of 8.84% places it in the top third, a metric that will likely stand out if you prefer to look at shorter time frames.
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. TRVLX's standard deviation over the past three years is 10.32% compared to the category average of 9.29%. The standard deviation of the fund over the past 5 years is 9.96% compared to the category average of 9.89%. This makes the fund more volatile than its peers over the past half-decade.
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment. In TRVLX's case, the fund lost 54.32% in the most recent bear market and underperformed comparable funds by 4.2%. These results could imply that the fund is a worse choice than its peers during a sliding market environment.
Investors should note that the fund has a 5-year beta of 1.02, so it is likely going to be as volatile as the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. With a negative alpha of -0.53, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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 primarily on equities that are traded in the United States.
This fund is currently holding about 98.88% stock in stocks, which have an average market capitalization of $114.07 billion. The fund has the heaviest exposure to the following market sectors:
Finance Technology Non-Durable Health
With turnover at about 91%, this fund makes more trades in a given year than the category average.
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, TRVLX is a no load fund. It has an expense ratio of 0.80% compared to the category average of 1.05%. From a cost perspective, TRVLX 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.
Overall, T. Rowe Price Value Fund TRVLX has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, T. Rowe Price Value Fund TRVLX looks like a good potential choice for investors right now.
Don't stop here for your research on Large Cap Value funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out
www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare TRVLX to its peers 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.