T. Rowe Price’s mutual funds, staples of many 401(k) plans, are popular with investors. The company manages $1.61 trillion in assets as of Dec. 31, putting it in the ranks of the 20 largest fund companies.
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According to data compiled by brokerage Charles Schwab, more than 90% of active T. Rowe Price funds have an expense ratio lower than other active funds in their categories.
Here’s a rundown of some of the company’s most popular funds and how they might fit in your portfolio:
| Fund | Expense Ratio |
| T. Rowe Price Balanced Fund (ticker: RPBAX) | 0.60% |
| T. Rowe Price Blue Chip Growth Fund (TRBCX) | 0.70% |
| T. Rowe Price Equity Income Fund (PRFDX) | 0.68% |
| T. Rowe Price U.S. Treasury Long-Term Fund (PRULX) | 0.29% |
| T. Rowe Price Equity Index 500 Fund (PREIX) | 0.19% |
| T. Rowe Price International Stock Fund (PRITX) | 0.83% |
T. Rowe Price Balanced Fund (RPBAX)
This balanced fund aims to deliver capital appreciation, current income and capital preservation all under one umbrella.
The fund’s asset allocation consists of about 65% in stocks and 35% in fixed income, although those amounts can fluctuate, depending on market conditions. In addition to individual stocks and bonds, it also invests in other T.?Rowe Price mutual funds and exchange-traded funds.
Thomas Brock, a chartered financial analyst and contributor to Annuity.org, says that the fund’s modest expense ratio of 0.6% and its diversified asset mix of equities make it a sound investment for retirees.
“The fund allocates money internationally, but domestic exposure is emphasized,” he says. “I like RPBAX for retirees, but it’s too conservative for working individuals endeavoring to accumulate wealth.”
T. Rowe Price Blue Chip Growth Fund (TRBCX)
This large-cap growth fund invests at least 80% of its assets in large- and mid-cap, blue-chip growth companies. The largest holdings are Microsoft Corp. (MSFT), Nvidia Corp. (NVDA) and Amazon.com Inc. (AMZN).
T. Rowe Price defines blue-chip growth companies as those that are well established in their industries and have the potential for above-average earnings growth.
This fund has historically outperformed the S&P 500 during bull markets but can be volatile in downturns, as its tilt toward the tech sector would indicate.
“The strategy is for investors with a long-term horizon who can tolerate short-term fluctuations in pursuit of higher returns,” says Ben Loughery, lead financial planner at Lock Wealth Management in Atlanta.
Manager Paul Greene, who has experience running tech funds, took the helm in 2021, taking over from Larry Puglia who had led the fund since 1993.
T. Rowe Price Equity Income Fund (PRFDX)
Categorized as a value fund, PRFDX normally invests at least 80% of its net assets in large-cap stocks with a track record of paying dividends, or stocks that managers believe are undervalued.
It’s benchmarked to the Russell 1000 Value Index.
Historically, value stocks have shown periods of outperformance, but they have been overshadowed by the dominance of big tech growth stocks in recent years. However, value stocks, as the name suggests, tend to trade at discounts relative to growth stocks. This frequently means investors can see significant upside in certain market conditions.
The fund’s 30-day yield is 1.9%, and its expense ratio is 0.68%. The fund may be suitable for retirees and others who want reliable income while minimizing volatility.
[The 7 Best Vanguard Funds for Retirement]
T. Rowe Price U.S. Treasury Long-Term Fund (PRULX)
This fixed-income fund is pegged to the Bloomberg U.S. Long Treasury Bond Index, which consists of U.S. Treasury bonds with maturities of 10 years or more.
To be eligible for inclusion in the index, bonds must also have a fixed-rate coupon or zero coupon with at least $250 million in outstanding face value.
In other words, its aim is income along with high credit quality.
Its expense ratio is 0.29% and its yield is 3.9%. This fund may be suitable for investors who want reliable income while seeking price appreciation from the equity side of their portfolios.
T. Rowe Price Equity Index 500 Fund (PREIX)
This fund tracks the S&P 500, thereby representing a familiar component of many retirement portfolios.
It’s easy to compare this fund with competing products, such as the Vanguard S&P 500 ETF (VOO) or the SPDR S&P 500 ETF Trust (SPY).
While index-measuring performance will be nearly identical to those funds and others that track the S&P 500, the PREIX expense ratio of 0.19% is higher than some others. That will chip away somewhat at investor returns.
“If you’re looking for pure low-cost indexing, there are cheaper alternatives,” says Charles Petitjean, financial planner at Barker Wealth Management in Camas, Washington. “That said, for investors who already have accounts with T. Rowe Price and want an easy way to track the S&P 500, it’s a fine option.”
T. Rowe Price International Stock Fund (PRITX)
This fund, part of Morningstar’s foreign large growth category, can serve the role of diversification within a portfolio. It invests in stocks outside the U.S. and includes a variety of industries in developed and emerging markets. Technology, health care and industrials are the largest sector holdings. Chipmaker Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) and chip-gear maker ASML Holding NV (ASML) are the most heavily weighted components.
“PRITX is a solid actively managed international fund with exposure across developed and emerging markets,” Petitjean says.
“It’s more volatile than a broad international index fund, but T. Rowe Price has a strong track record in active management, and this fund has historically outperformed its benchmark over long periods,” he adds.
He notes that its expense ratio of 0.83% is higher than passive international ETFs, but for investors who believe in active management’s ability to add value in global markets, it could be worth the premium.
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6 Best T. Rowe Price Funds for Retirement originally appeared on usnews.com
Update 02/24/25: This story was published at an earlier date and has been updated with new information.
