TILCX
TRPrice LargeCap Value-I
Introduction to TRPrice LargeCap Value-I
The TRPrice LargeCap Value-I fund, ticker symbol TILCX, is designed to provide investors with long-term capital appreciation and secondary income by investing primarily in undervalued large-cap companies. As part of the T. Rowe Price family, this fund aims to capitalize on growth opportunities within the large-cap value category. With an expense ratio of 0.57%, TILCX offers a cost-effective way to gain exposure to large-cap stocks that are considered undervalued by the portfolio manager. The fund’s strategy is particularly appealing to investors seeking growth potential while maintaining a focus on value investing principles.
At A Glance
Executive Summary
TILCX offers undervalued large-cap exposure with a 0.57% expense ratio, focusing on growth and income.
Focus on undervalued large-cap stocks Competitive expense ratio Strong recent performance
Negative alpha and Sharpe ratio High downside risk Limited bond exposure
Performance Analysis: A Year of Growth
TILCX has demonstrated impressive performance over the past year, with a one-year return of 30.15%. This performance is noteworthy, especially when compared to its benchmark, the S&P 500 Total Return Index, which posted a one-year return of 37.62%. While TILCX slightly underperformed the benchmark, its focus on undervalued stocks has allowed it to capture significant growth. The fund’s five-year annualized return stands at 10.49%, indicating consistent performance over a longer period. This growth trajectory makes TILCX an attractive option for investors looking to benefit from the appreciation of undervalued large-cap stocks.
Portfolio Composition: A Focus on Financials and Health Care
The portfolio of TILCX is heavily weighted towards the financial and health care sectors, which together constitute over 36% of the fund’s total holdings. This strategic allocation reflects the fund manager’s belief in the growth potential of these sectors. Top holdings include Chubb Ltd, Kenvue Inc, and Elevance Health Inc, each representing a significant portion of the portfolio. The fund’s sector allocation is diversified across industries such as technology, industrials, and energy, providing a balanced approach to capturing value across different market segments. This diversification helps mitigate sector-specific risks while capitalizing on sectoral growth opportunities.
Risk Metrics: Navigating Volatility
Despite its strong performance, TILCX exhibits certain risk metrics that investors should consider. The fund has a beta of 0.73, indicating lower volatility compared to the market. However, its alpha is -7.51%, suggesting that the fund has underperformed its benchmark on a risk-adjusted basis. The Sharpe ratio of -0.70 further highlights the fund’s challenges in delivering returns relative to its risk. Additionally, the fund’s downside risk, measured by a downside risk (UI) of 1.51, suggests potential vulnerability during market downturns. Investors should weigh these risk factors against the fund’s growth potential when considering an investment in TILCX.
Competitive Comparison: Standing Out Among Peers
When compared to similar funds, TILCX holds its ground with a competitive expense ratio of 0.57%. Similar funds like Sit Dividend Growth-I (SDVGX) and ClearBridge Appreciation-I (SAPYX) offer slightly lower expense ratios but differ in their investment focus and sector allocations. TILCX’s emphasis on undervalued large-cap stocks sets it apart from peers that may prioritize dividend growth or appreciation. The fund’s yield of 1.97% is also competitive, providing an additional income stream for investors. This combination of growth potential and income makes TILCX a compelling choice for those seeking a balanced approach to large-cap value investing.
Sector Allocation: Strategic Diversification
TILCX’s sector allocation strategy is designed to capture value across a diverse range of industries. With significant investments in financials (18.76%) and health care (17.79%), the fund is well-positioned to benefit from the growth prospects in these sectors. The fund also maintains exposure to technology, industrials, and energy, ensuring a well-rounded portfolio that can adapt to changing market conditions. This strategic diversification helps reduce the impact of sector-specific downturns and enhances the fund’s ability to capitalize on emerging opportunities. Investors looking for a diversified approach to large-cap value investing will find TILCX’s sector allocation appealing.
Market Cap Allocation: Emphasizing Medium and Large Caps
The market cap allocation of TILCX is predominantly focused on medium and large-cap companies, which together account for over 80% of the fund’s holdings. This focus aligns with the fund’s strategy of investing in undervalued large-cap stocks, providing a balance between growth potential and stability. The fund’s allocation to extra-large caps at 16.35% further enhances its exposure to established companies with strong market positions. This emphasis on medium and large caps allows TILCX to capture growth opportunities while maintaining a level of stability that is attractive to investors seeking a reliable investment vehicle in the large-cap value space.
Conclusion: A Strategic Choice for Value Investors
In conclusion, TRPrice LargeCap Value-I (TILCX) stands out as a strategic choice for investors seeking exposure to undervalued large-cap stocks. With a focus on growth and income, the fund offers a competitive expense ratio and a diversified portfolio that spans key sectors such as financials and health care. While the fund’s risk metrics indicate some challenges, its strong recent performance and strategic sector allocation make it a compelling option for growth-focused investors. TILCX is particularly suitable for those looking to balance growth potential with value investing principles, making it an ideal addition to a diversified investment portfolio.
Similar Securities
ACEHX: Invesco Exchange | High Yield Large Cap Value Fund
ACEHX offers high yield but with extreme volatility and significant drawdowns, making it suitable for risk-tolerant investors.
DODGX: Dodge & Cox Stock-I | Growth and Income with Value Focus
Dodge & Cox Stock-I (DODGX) offers a balanced approach to growth and income with a competitive 0.51% expense ratio and strong sector diversification.
LCEAX: Invesco Diversified Dividend-A | Equity-Income Large Cap Value Fund
LCEAX offers a diversified large-cap value portfolio with a 1.48% yield and a focus on equity-income, suitable for conservative growth investors.
SAIFX: ClearBridge LargeCap Value-I | Growth and Income with Large-Cap Stability
SAIFX offers a balanced approach with a 0.59% expense ratio, focusing on large-cap value stocks for growth and income, outperforming peers in stability.
PRFDX: TRPrice Equity Income-Inv | High Dividend Large Cap Value Fund
PRFDX offers substantial dividend income and growth with a 0.68% expense ratio, focusing on established companies with above-average dividends.
Futher Reading
https://finance.yahoo.com/quote/TILCX/”>Yahoo: TRPrice LargeCap Value-I
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