PRDSX
TRPrice Integrated US SMCap Grwth Eq-Inv
Introduction to PRDSX: A Small Cap Growth Powerhouse
The TRPrice Integrated US SMCap Grwth Eq-Inv (PRDSX) is a mutual fund designed to capture the growth potential of small-cap companies in the United States. Managed by the reputable T. Rowe Price, this fund primarily invests in small-cap growth stocks, aiming for long-term capital appreciation. With a focus on diversification, PRDSX allocates at least 80% of its net assets to small-cap growth companies, making it an attractive option for investors seeking exposure to this dynamic segment of the market. The fund’s strategy is to identify and invest in companies with strong growth prospects, leveraging the expertise of T. Rowe Price’s seasoned management team.
At A Glance
Executive Summary
PRDSX offers a diversified small-cap growth portfolio with a competitive 0.8% expense ratio and strong 1-year return of 39.46%, outperforming its benchmark.
Strong 1-year return of 39.46%. Diversified small-cap growth portfolio. Managed by T. Rowe Price, a reputable fund family.
Higher beta of 1.29 indicates more volatility. No yield for income-focused investors. Expense ratio higher than some peers.
Impressive Recent Performance: A Standout Year
PRDSX has demonstrated remarkable performance over the past year, achieving a 1-year return of 39.46%, which surpasses its benchmark, the S&P 500 Total Return Index, which posted a 37.62% return. This impressive performance highlights the fund’s ability to capitalize on the growth opportunities within the small-cap sector. The fund’s strong returns can be attributed to its strategic stock selection and effective portfolio management, which have enabled it to outperform many of its peers. Investors looking for a fund with a proven track record of delivering high returns in the small-cap growth category may find PRDSX particularly appealing.
Portfolio Composition: A Diverse Array of Small-Cap Stocks
The portfolio of PRDSX is characterized by its diverse allocation across various sectors, with significant investments in technology (21.10%), health care (22.35%), and industrials (21.92%). This sector diversification helps mitigate risks associated with investing in small-cap stocks, which can be more volatile than their larger counterparts. The fund’s top holdings include companies like Curtiss-Wright Corp, FTAI Aviation Ltd, and Wingstop Inc, each representing a small percentage of the total portfolio. This broad diversification not only reduces risk but also positions the fund to benefit from growth across multiple industries, enhancing its potential for long-term capital appreciation.
Risk and Volatility: Understanding the Metrics
Investors should be aware of the risk metrics associated with PRDSX, which include a beta of 1.29, indicating higher volatility compared to the market. The fund’s alpha of 1.80% suggests it has outperformed its benchmark on a risk-adjusted basis. The Sharpe ratio of 0.10 and Treynor ratio of 1.40 further illustrate the fund’s risk-return profile. While the fund’s standard deviation of 5.13% reflects its volatility, the downside risk (UI) of 2.84% and a max drawdown of -9.0% highlight potential risks during market downturns. These metrics are crucial for investors to consider, especially those with a lower risk tolerance.
Competitive Comparison: How PRDSX Stacks Up
When compared to similar funds, PRDSX holds its ground with a competitive 1-year return of 39.46%. While funds like abrdn US Sustn Leaders SmallCom-Inst (GGUIX) have slightly higher returns at 43.45%, PRDSX’s expense ratio of 0.8% is relatively competitive within its category. Other funds, such as Segall Bryant & Hamill SmallCap Gr-Ret (WTSGX) and Allspring Discovery SmallCap Growth-A (EGWAX), offer similar returns but with varying expense ratios and beta values. PRDSX’s performance, combined with its strategic sector allocation and management by T. Rowe Price, makes it a strong contender in the small-cap growth space.
Expense Ratio and Cost Efficiency: A Balanced Approach
PRDSX’s expense ratio of 0.8% is a critical factor for investors to consider, as it impacts the net returns of the fund. While this expense ratio is higher than some of its peers, it is justified by the fund’s strong performance and the expertise of T. Rowe Price’s management team. The fund’s cost structure reflects its active management strategy, which involves thorough research and analysis to identify promising small-cap growth opportunities. For investors who prioritize performance and are willing to pay a slightly higher fee for potential high returns, PRDSX offers a compelling option.
Investor Suitability: Who Should Consider PRDSX?
PRDSX is ideally suited for investors seeking long-term capital growth through exposure to small-cap stocks. Its focus on growth companies makes it an attractive choice for those with a higher risk tolerance and a long investment horizon. The fund’s lack of yield may not appeal to income-focused investors, but its potential for capital appreciation is significant. Additionally, investors who value diversification across sectors and are comfortable with the inherent volatility of small-cap stocks will find PRDSX aligns well with their investment goals. The fund’s strong performance and strategic management make it a suitable option for growth-oriented portfolios.
Conclusion: PRDSX’s Unique Value Proposition
In conclusion, the TRPrice Integrated US SMCap Grwth Eq-Inv (PRDSX) stands out as a robust option for investors seeking exposure to small-cap growth stocks. Its impressive 1-year return of 39.46%, coupled with a diversified portfolio and strategic sector allocation, underscores its potential for long-term capital appreciation. Managed by T. Rowe Price, a leader in the investment management industry, PRDSX offers a compelling blend of performance and diversification. While its higher beta and expense ratio may deter some investors, those focused on growth and willing to embrace volatility will find PRDSX a valuable addition to their investment strategy.
Similar Securities
OTCFX: TRPrice SmallCap Stock-Inv | Small Cap Growth Opportunities
OTCFX offers small-cap growth with a 0.90% expense ratio, outperforming peers with a 36.72% 1-year return. Ideal for aggressive growth investors.
JANVX: Janus Henderson Venture-D | Small Cap Growth Fund Analysis
JANVX offers strong small-cap growth with a 41.42% 1-year return, outperforming its benchmark. Ideal for aggressive investors seeking capital appreciation.
TRSSX: TRPrice Inst SmallCap Stock-Inst | High Growth Small-Cap Fund
TRSSX offers high growth potential with a focus on small-cap stocks, boasting a 36.72% 1-year return, ideal for aggressive investors seeking capital growth.
PRDSX: TRPrice Integrated US SMCap Grwth Eq-Inv | Small Cap Growth Fund Analysis
PRDSX offers a diversified small-cap growth portfolio with a competitive 0.8% expense ratio and strong 1-year return of 39.46%, outperforming its benchmark.
OPOCX: Invesco Discovery-A | High Growth Small Cap Fund
OPOCX offers high growth potential with a focus on small-cap U.S. equities, boasting a 47.62% 1-year return and a 1.03% expense ratio.
Futher Reading
https://www.morningstar.com/funds/xnas/PRDSX/quote
https://finance.yahoo.com/quote/PRDSX/”>Yahoo: TRPrice Integrated US SMCap Grwth Eq-Inv
https://ftcloud.fasttrack.net/web/chart/PRDSX
https://www.wsj.com/market-data/quotes/mutualfund/PRDSX
Disclaimer: The information provided on this website is for informational purposes only and should not be construed as financial, investment, or other professional advice. PeepFinance does not endorse or recommend any specific securities, investments, or strategies. The opinions expressed are solely those of the authors and are not intended to be used as the basis for any investment decisions. All investments carry risks, and readers are encouraged to conduct their own research or consult with a financial professional before making any financial decisions. PeepFinance and its authors are not responsible for any losses or damages arising from the use of this information.