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Is TIAA-CREF Large Cap Value Premier (TRCPX) a Strong Mutual Fund Pick Right Now?
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Having trouble finding a Large Cap Value fund? TIAA-CREF Large Cap Value Premier (TRCPX - Free Report) is a potential starting point. TRCPX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
TRCPX is one of many Large Cap Value mutual funds to choose from. These funds invest in equities with a market capitalization of $10 billion or more, but whose share prices do not reflect their intrinsic value. This strategy can often produce low P/E ratios and high dividend yields; growth levels; however, growth levels are oftentimes cut back. These funds'high growth opportunities are slowed even more since large-cap stocks are usually in more stable industries with low to moderate growth prospects. Thus, investors interested in a stable income stream fund Large Cap Value funds very appealing.
History of Fund/Manager
TIAA-CREF is responsible for TRCPX, and the company is based out of Boston, MA. Since TIAA-CREF Large Cap Value Premier made its debut in September of 2009, TRCPX has garnered more than $291.95 million in assets. Thomas Kolefas is the fund's current manager and has held that role since September of 2009.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. TRCPX has a 5-year annualized total return of 9.98% and it sits in the middle 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 6.78%, which places it in the middle 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. The standard deviation of TRCPX over the past three years is 11.78% compared to the category average of 9.23%. Over the past 5 years, the standard deviation of the fund is 11.11% compared to the category average of 9.05%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. TRCPX has a 5-year beta of 1.06, which means it is likely to be more volatile than the market average. 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. TRCPX's 5-year performance has produced a negative alpha of -3.57, which means 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.
This fund is currently holding about 82.43% stock in stocks, which have an average market capitalization of $94.29 billion. The fund has the heaviest exposure to the following market sectors:
Finance
Technology
Industrial Cyclical
With turnover at about 53%, this fund is making more traders than comparable funds in a given year.
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, TRCPX is a no load fund. It has an expense ratio of 0.55% compared to the category average of 1.03%. TRCPX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Bottom Line
Overall, TIAA-CREF Large Cap Value Premier has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, TIAA-CREF Large Cap Value Premier looks like a great 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 TRCPX to its peers as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
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Is TIAA-CREF Large Cap Value Premier (TRCPX) a Strong Mutual Fund Pick Right Now?
Having trouble finding a Large Cap Value fund? TIAA-CREF Large Cap Value Premier (TRCPX - Free Report) is a potential starting point. TRCPX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
TRCPX is one of many Large Cap Value mutual funds to choose from. These funds invest in equities with a market capitalization of $10 billion or more, but whose share prices do not reflect their intrinsic value. This strategy can often produce low P/E ratios and high dividend yields; growth levels; however, growth levels are oftentimes cut back. These funds'high growth opportunities are slowed even more since large-cap stocks are usually in more stable industries with low to moderate growth prospects. Thus, investors interested in a stable income stream fund Large Cap Value funds very appealing.
History of Fund/Manager
TIAA-CREF is responsible for TRCPX, and the company is based out of Boston, MA. Since TIAA-CREF Large Cap Value Premier made its debut in September of 2009, TRCPX has garnered more than $291.95 million in assets. Thomas Kolefas is the fund's current manager and has held that role since September of 2009.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. TRCPX has a 5-year annualized total return of 9.98% and it sits in the middle 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 6.78%, which places it in the middle 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. The standard deviation of TRCPX over the past three years is 11.78% compared to the category average of 9.23%. Over the past 5 years, the standard deviation of the fund is 11.11% compared to the category average of 9.05%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. TRCPX has a 5-year beta of 1.06, which means it is likely to be more volatile than the market average. 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. TRCPX's 5-year performance has produced a negative alpha of -3.57, which means 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.
This fund is currently holding about 82.43% stock in stocks, which have an average market capitalization of $94.29 billion. The fund has the heaviest exposure to the following market sectors:
With turnover at about 53%, this fund is making more traders than comparable funds in a given year.
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, TRCPX is a no load fund. It has an expense ratio of 0.55% compared to the category average of 1.03%. TRCPX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Bottom Line
Overall, TIAA-CREF Large Cap Value Premier has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, TIAA-CREF Large Cap Value Premier looks like a great 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 TRCPX to its peers as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.