PEXMX
TRPrice Extended Equity Market IxFd
Introduction to TRPrice Extended Equity Market IxFd
The TRPrice Extended Equity Market IxFd (PEXMX) is a mutual fund designed to provide investors with growth opportunities by focusing on small and midcap stocks. Managed by T. Rowe Price, this fund aims to mirror the performance of the Wilshire 4500 equity index, offering a diversified portfolio that captures the dynamic potential of smaller companies. With an expense ratio of just 0.24%, PEXMX is an attractive option for cost-conscious investors seeking exposure to the midcap sector. The fund’s strategy is particularly appealing to those looking to capitalize on the growth potential inherent in smaller, agile companies that can outperform larger counterparts in certain market conditions.
At A Glance
Executive Summary
PEXMX offers growth potential with a focus on small and midcap stocks, boasting a competitive 0.24% expense ratio and strong recent performance.
Low expense ratio of 0.24% enhances net returns. Strong 1-year return of 43.45% indicates robust growth. Diverse sector allocation with a focus on technology and industrials.
Higher beta of 1.27 suggests increased volatility. Limited large-cap exposure may not suit all investors. Yield of 0.87% may not appeal to income-focused investors.
Impressive Recent Performance
PEXMX has demonstrated impressive performance over the past year, with a 1-year return of 43.45%, significantly outpacing its benchmark, the S&P 500 Total Return Index, which returned 37.62% over the same period. This strong performance highlights the fund’s ability to capitalize on market opportunities within the small and midcap sectors. The fund’s annualized returns over five years stand at 11.59%, showcasing its consistent ability to deliver growth over the medium term. This performance is particularly noteworthy given the fund’s focus on smaller companies, which can be more volatile but also offer higher growth potential.
Sector Allocation and Growth Potential
PEXMX’s sector allocation is heavily weighted towards technology (19.63%) and industrials (16.95%), sectors known for their growth potential. This strategic allocation positions the fund to benefit from technological advancements and industrial innovation. Additionally, the fund’s exposure to financials (15.78%) and healthcare (12.46%) provides a balanced approach, offering stability and growth. The fund’s diverse sector allocation ensures that it is well-positioned to capture opportunities across various industries, making it a compelling choice for investors seeking growth through sector diversification.
Risk and Volatility Considerations
Investors should be aware of the risk and volatility associated with PEXMX. The fund has a beta of 1.27, indicating higher volatility compared to the market. This is a common characteristic of funds focused on small and midcap stocks, which can experience more significant price fluctuations. However, the fund’s alpha of 5.79% suggests that it has been able to generate returns above the expected level given its risk profile. The Sharpe ratio of 0.31 and Treynor ratio of 4.56 further indicate that the fund has been able to achieve returns that justify its risk, making it a suitable option for investors with a higher risk tolerance.
Competitive Expense Ratio
One of the standout features of PEXMX is its competitive expense ratio of 0.24%, which is lower than many of its peers in the midcap growth category. This low expense ratio enhances the net returns for investors, allowing them to retain more of the fund’s performance gains. In comparison, similar funds such as the Invesco Discovery MidCap Growth-Y (OEGYX) and Harbor Disruptive Innovation-Inst (HAMGX) have higher expense ratios of 0.79% and 0.83%, respectively. This cost efficiency makes PEXMX an attractive option for investors looking to maximize their investment returns while minimizing costs.
Portfolio Composition and Top Holdings
PEXMX’s portfolio is composed primarily of U.S. equities, with a significant allocation to small (46.40%) and medium (32.32%) market cap stocks. The fund’s top holdings include companies like Marvell Technology Inc (0.89%) and Apollo Global Management Inc (0.80%), which are leaders in their respective industries. This focus on small and midcap stocks allows the fund to tap into the growth potential of emerging companies that are often overlooked by larger funds. The fund’s strategic selection of top holdings reflects its commitment to identifying high-potential stocks that can drive future performance.
Comparison with Similar Funds
When compared to similar funds, PEXMX holds its ground with a strong 1-year return of 43.45%. For instance, the Voya Russell Mid Cap Growth Idx Port I (IRGJX) and Invesco Discovery MidCap Growth-Y (OEGYX) have comparable returns of 43.33% and 44.30%, respectively. However, PEXMX’s lower expense ratio of 0.24% gives it a competitive edge in terms of cost efficiency. Additionally, its focus on small and midcap stocks differentiates it from funds like the Vanguard MidCap Growth-Inv (VMGRX), which may have a broader market cap focus. This makes PEXMX a compelling choice for investors specifically seeking midcap growth exposure.
Conclusion: Suitability for Growth-Oriented Investors
In conclusion, the TRPrice Extended Equity Market IxFd (PEXMX) stands out as a strong contender for growth-oriented investors seeking exposure to small and midcap stocks. Its impressive recent performance, competitive expense ratio, and strategic sector allocation make it an attractive option for those looking to capitalize on the growth potential of smaller companies. However, investors should be mindful of the fund’s higher volatility and limited large-cap exposure. Overall, PEXMX is well-suited for investors with a higher risk tolerance who are focused on long-term growth and are willing to navigate the inherent risks of the midcap sector.
Similar Securities
JAENX: Janus Henderson Enterprise-T | MidCap Growth Fund Analysis
JAENX focuses on mid-cap growth with a 0.91% expense ratio, offering a 34.28% 1-year return, emphasizing technology and healthcare sectors.
MDRFX: BlackRock MidCap Value-InvA | MidCap Value Investment
MDRFX offers mid-cap value exposure with a focus on undervalued equities, a 1% expense ratio, and a 1.69% yield, suitable for growth-oriented investors.
BRMIX: iShares Russell MidCap IxFd-Inst | Growth-Focused MidCap Investment
BRMIX offers low-cost exposure to US mid-cap stocks with a 0.09% expense ratio, ideal for growth-focused investors seeking mid-cap market exposure.
FRBSX: Franklin Mutual US MidCap Value-A | Undervalued MidCap Growth & Income
FRBSX offers undervalued midcap exposure with a 0.90% expense ratio and 1.06% yield, ideal for value-focused investors seeking growth and income.
JSVSX: Janus Henderson Small/MidCap Value-S | Growth Potential in Undervalued MidCaps
JSVSX offers growth through undervalued midcap stocks with a strong 1-year return of 43.42%, outperforming its benchmark.
Futher Reading
https://finance.yahoo.com/quote/PEXMX/”>Yahoo: TRPrice Extended Equity Market IxFd
https://ftcloud.fasttrack.net/web/chart/PEXMX
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