PRSGX
TRPrice Spectrum Growth Equity-Inv
Introduction to TRPrice Spectrum Growth Equity-Inv
The TRPrice Spectrum Growth Equity-Inv (PRSGX) is a mutual fund designed to achieve long-term capital appreciation and growth of income, with current income as a secondary objective. This fund is part of the T. Rowe Price family and invests in a diversified portfolio of T. Rowe Price mutual funds, including both domestic and international equity funds, as well as a money market fund. As a large-cap growth fund, PRSGX aims to provide investors with exposure to a broad range of high-quality, large-cap companies, making it an attractive option for those seeking growth potential in their investment portfolios.
At A Glance
Executive Summary
PRSGX offers diversified large-cap growth with a 0.73% expense ratio, focusing on T. Rowe Price funds for long-term capital appreciation.
Diversified exposure to large-cap equities Strong historical performance with 31.83% 1-year return Managed by reputable T. Rowe Price family
Higher expense ratio compared to some peers Negative alpha indicating underperformance Potential volatility with a -7.5% max drawdown
Performance Analysis: A Year of Impressive Returns
PRSGX has demonstrated strong performance over the past year, with a remarkable 31.83% return, significantly outpacing its benchmark, the S&P 500 Total Return Index, which returned 37.62%. Despite this impressive performance, the fund’s alpha of -5.84% suggests that it has underperformed on a risk-adjusted basis compared to the benchmark. The fund’s beta of 0.88 indicates lower volatility relative to the market, which may appeal to investors seeking growth with a slightly reduced risk profile. However, the negative Sharpe and Treynor ratios highlight the need for investors to consider the fund’s risk-return trade-off carefully.
Portfolio Composition: A Diverse Mix of T. Rowe Price Funds
The portfolio of PRSGX is composed of a diverse mix of T. Rowe Price mutual funds, with top holdings including T. Rowe Price Value Z (12.81%), T. Rowe Price US Large-Cap Core Z (12.37%), and T. Rowe Price Equity Income Z (11.25%). This strategic allocation allows the fund to tap into various sectors and investment styles, providing a balanced approach to growth investing. The fund’s sector allocation is heavily weighted towards technology (24.78%), healthcare (14.90%), and financials (14.05%), reflecting a focus on industries with strong growth potential. This diversified approach helps mitigate sector-specific risks while capitalizing on growth opportunities across different market segments.
Risk Metrics: Understanding the Volatility and Drawdown
Investors should be aware of the risk metrics associated with PRSGX, which include a standard deviation of 3.27% and a max drawdown of -7.5%. The fund’s downside risk, measured by the Ulcer Index, is 1.68, indicating moderate potential for loss during market downturns. The correlation with the benchmark is high at 95.72%, suggesting that the fund’s performance is closely tied to the broader market. While the fund’s beta of 0.88 indicates lower volatility compared to the market, the negative alpha and Sharpe ratio suggest that the fund has not been able to fully capitalize on its risk exposure, which is an important consideration for potential investors.
Comparative Analysis: How PRSGX Stacks Up Against Peers
When compared to similar funds, PRSGX offers a competitive edge in terms of its diversified exposure to large-cap equities. However, its expense ratio of 0.73% is higher than some peers, such as Sit Dividend Growth-I (SDVGX) and Nicholas (NICSX), both with lower expense ratios. Despite this, PRSGX’s 1-year return of 31.83% is competitive, though slightly lower than MFS Research-A (MFRFX), which returned 32.31%. The fund’s beta of 0.88 is lower than most peers, indicating less volatility, which may be appealing to risk-averse investors. Overall, PRSGX provides a solid option for those seeking growth with a reputable fund family, though cost-conscious investors may want to consider alternatives.
Sector and Market Cap Allocation: A Focus on Growth Sectors
PRSGX’s sector allocation is heavily skewed towards technology, healthcare, and financials, which together comprise over 50% of the portfolio. This focus on growth sectors aligns with the fund’s objective of capital appreciation. Additionally, the fund’s market cap allocation is predominantly in large-cap (29.60%) and extra-large-cap (34.84%) stocks, providing stability and growth potential. The fund’s exposure to medium-cap stocks (25.90%) adds a layer of diversification, allowing it to capture growth opportunities in smaller, potentially high-growth companies. This strategic allocation positions PRSGX to benefit from both established market leaders and emerging growth companies.
Expense Ratio and Yield: Balancing Costs and Income
PRSGX has an expense ratio of 0.73%, which is relatively high compared to some of its peers. This cost may be justified by the fund’s active management and diversified portfolio of T. Rowe Price funds. The fund’s yield of 0.76% provides a modest income stream, which may appeal to investors seeking some level of current income alongside capital appreciation. While the yield is not the primary focus of this growth-oriented fund, it adds an additional layer of return for investors. Potential investors should weigh the fund’s expense ratio against its performance and income potential to determine if it aligns with their investment goals.
Conclusion: Is PRSGX the Right Fit for Your Portfolio?
In conclusion, TRPrice Spectrum Growth Equity-Inv (PRSGX) offers a compelling option for investors seeking diversified exposure to large-cap growth equities. Managed by the reputable T. Rowe Price family, the fund provides a strategic mix of domestic and international equity funds, with a focus on high-growth sectors. While the fund’s expense ratio is higher than some peers, its strong historical performance and diversified portfolio may justify the cost for growth-oriented investors. However, those seeking lower fees or higher income may want to explore alternative options. Overall, PRSGX is well-suited for investors looking to capitalize on growth opportunities with a trusted fund manager.
Similar Securities
PRWAX: TRPrice All Cap Opportunities-Inv | High-Growth Sector Investment
PRWAX offers exposure to high-growth sectors with a focus on large-cap stocks, boasting a 37.10% 1-year return, ideal for growth-focused investors.
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.
AMCPX: American Funds AMCAP-A | Growth-Focused U.S. Equity Fund
AMCPX offers a robust tech allocation and competitive returns, ideal for growth-focused investors seeking U.S. equity exposure.
JACAX: Janus Henderson VIT Forty-Inst | High Growth Potential in Large-Cap Stocks
JACAX offers a focused portfolio of 20-40 high-growth stocks, outperforming its benchmark with a 43.45% 1-year return and a competitive 0.55% expense ratio.
MAFGX: BlackRock Capital Appreciation-Inst | High Growth Potential in Large-Cap Stocks
MAFGX offers high growth with a 42.60% 1-year return, focusing on tech-heavy large-cap stocks. Competitive expense ratio of 0.74%.
Futher Reading
https://finance.yahoo.com/quote/PRSGX/”>Yahoo: TRPrice Spectrum Growth Equity-Inv
https://ftcloud.fasttrack.net/web/chart/PRSGX
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.