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Is T. Rowe Price Institutional Large Cap Core (TPLGX) a Strong Mutual Fund Pick Right Now?
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Large Cap Growth fund seekers should consider taking a look at T. Rowe Price Institutional Large Cap Core (TPLGX - Free Report) . TPLGX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
TPLGX is part of the Large Cap Growth section, and this segment boasts an array of other possible options. Large Cap Growth mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. Companies are usually considered to be large-cap if their market capitalization is over $10 billion.
History of Fund/Manager
T. Rowe Price is based in Baltimore, MD, and is the manager of TPLGX. The T. Rowe Price Institutional Large Cap Core made its debut in October of 2003 and TPLGX has managed to accumulate roughly $2.94 billion in assets, as of the most recently available information. The fund is currently managed by Paul Greene who has been in charge of the fund since October of 2021.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 13.21%, and is in the bottom 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 6.42%, which places it in the bottom third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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 TPLGX over the past three years is 22.48% compared to the category average of 20.91%. The standard deviation of the fund over the past 5 years is 21.24% compared to the category average of 20.87%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.06, which means it is hypothetically more volatile than 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. TPLGX's 5-year performance has produced a negative alpha of -1.57, which means managers in this portfolio find it difficult to pick 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.
The mutual fund currently has 91.73% of its holdings in stocks, with an average market capitalization of $698.33 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Retail Trade
Finance
With turnover at about 14.5%, this fund makes 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 0.94%. From a cost perspective, TPLGX is actually cheaper than its peers.
This fund requires a minimum initial investment of $1 million, while there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, even with its comparatively weak performance, average downside risk, and lower fees, T. Rowe Price Institutional Large Cap Core ( TPLGX ) has a high Zacks Mutual Fund rank, and therefore looks a great potential choice for investors right now.
Your research on the Large Cap Growth segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer 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.
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Is T. Rowe Price Institutional Large Cap Core (TPLGX) a Strong Mutual Fund Pick Right Now?
Large Cap Growth fund seekers should consider taking a look at T. Rowe Price Institutional Large Cap Core (TPLGX - Free Report) . TPLGX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
TPLGX is part of the Large Cap Growth section, and this segment boasts an array of other possible options. Large Cap Growth mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. Companies are usually considered to be large-cap if their market capitalization is over $10 billion.
History of Fund/Manager
T. Rowe Price is based in Baltimore, MD, and is the manager of TPLGX. The T. Rowe Price Institutional Large Cap Core made its debut in October of 2003 and TPLGX has managed to accumulate roughly $2.94 billion in assets, as of the most recently available information. The fund is currently managed by Paul Greene who has been in charge of the fund since October of 2021.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 13.21%, and is in the bottom 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 6.42%, which places it in the bottom third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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 TPLGX over the past three years is 22.48% compared to the category average of 20.91%. The standard deviation of the fund over the past 5 years is 21.24% compared to the category average of 20.87%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.06, which means it is hypothetically more volatile than 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. TPLGX's 5-year performance has produced a negative alpha of -1.57, which means managers in this portfolio find it difficult to pick 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.
The mutual fund currently has 91.73% of its holdings in stocks, with an average market capitalization of $698.33 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Retail Trade
- Finance
With turnover at about 14.5%, this fund makes 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 0.94%. From a cost perspective, TPLGX is actually cheaper than its peers.
This fund requires a minimum initial investment of $1 million, while there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, even with its comparatively weak performance, average downside risk, and lower fees, T. Rowe Price Institutional Large Cap Core ( TPLGX ) has a high Zacks Mutual Fund rank, and therefore looks a great potential choice for investors right now.
Your research on the Large Cap Growth segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer 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.