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Is T. Rowe Price European Stock (PRESX) a Strong Mutual Fund Pick Right Now?
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If investors are looking at the Mutual Fund Equity Report fund category, make sure to pass over T. Rowe Price European Stock (PRESX - Free Report) . PRESX carries a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
T. Rowe Price is based in Baltimore, MD, and is the manager of PRESX. T. Rowe Price European Stock made its debut in February of 1990, and since then, PRESX has accumulated about $936 million in assets, per the most up-to-date date available. The fund is currently managed by Tobias Mueller who has been in charge of the fund since July of 2020.
Performance
Investors naturally seek funds with strong performance. PRESX has a 5-year annualized total return of 4.37% and it sits in the middle 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 7.25%, which places it in the bottom 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 PRESX over the past three years is 18.24% compared to the category average of 17.76%. Over the past 5 years, the standard deviation of the fund is 16.07% compared to the category average of 15.62%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.88, the fund is likely to be less volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. PRESX's 5-year performance has produced a negative alpha of -6.56, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, PRESX is a no load fund. It has an expense ratio of 0.95% compared to the category average of 1.30%. From a cost perspective, PRESX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $2,500 and that each subsequent investment needs to be at $100.
Bottom Line
Overall, T. Rowe Price European Stock ( PRESX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
For additional information on the Mutual Fund Equity Report area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into PRESX too 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 T. Rowe Price European Stock (PRESX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the Mutual Fund Equity Report fund category, make sure to pass over T. Rowe Price European Stock (PRESX - Free Report) . PRESX carries a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
T. Rowe Price is based in Baltimore, MD, and is the manager of PRESX. T. Rowe Price European Stock made its debut in February of 1990, and since then, PRESX has accumulated about $936 million in assets, per the most up-to-date date available. The fund is currently managed by Tobias Mueller who has been in charge of the fund since July of 2020.
Performance
Investors naturally seek funds with strong performance. PRESX has a 5-year annualized total return of 4.37% and it sits in the middle 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 7.25%, which places it in the bottom 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 PRESX over the past three years is 18.24% compared to the category average of 17.76%. Over the past 5 years, the standard deviation of the fund is 16.07% compared to the category average of 15.62%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.88, the fund is likely to be less volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. PRESX's 5-year performance has produced a negative alpha of -6.56, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, PRESX is a no load fund. It has an expense ratio of 0.95% compared to the category average of 1.30%. From a cost perspective, PRESX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $2,500 and that each subsequent investment needs to be at $100.
Bottom Line
Overall, T. Rowe Price European Stock ( PRESX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
For additional information on the Mutual Fund Equity Report area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into PRESX too 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.