November 24, 2012

T. Rowe Price Equity Index 500 Fund (PREIX)

T. Rowe Price Equity Index 500 Fund (PREIX) is a large blend mutual fund. This fund is tracking the performance of Standard & Poor’s 500 Stock Index.

T. Rowe Price Equity Index 500 (Ticker: PREIX)

The T. Rowe Price Equity Index 500 fund objective is seeking to match the performance of the Standard & Poor’s 500 Stock Index. It utilizes its assets to purchase all of the stocks in the S&P 500 Index. It attempts to maintain holdings of each stock in proportion to its weight in the index. Under normal conditions, the mutual fund will invest >80% of its net assets in stocks that are held in its benchmark index.

Fund Profile
    T. Rowe Price Equity Index 500 Fund
  • Fund Inception Date: March 29, 1990
  • Ticker Symbol: PREIX
  • CUSIP: 779552108
  • Beta (3yr): 1.00
  • Rank in category (YTD): 27%
  • Category: Large Blend
  • Distribution: 1.76%
  • Capital Gains: 0%
  • Expense Ratio: 0.30%
  • Net Assets: $ 14.66 billion
  • Number of Years Up: 17 years
  • Number of Years Down: 4 years
  • Annual Turnover Rate: 5.50%
Updated on 11/24/2012

This large blend mutual fund has $14.66 billion of total assets. It was first introduced to public in March 1990. It also has 12-month dividend yield of 1.76%. The last dividend was distributed in June 2012 ($0.20). Morningstar analysts rate it with 4-stars rating and Bronze rating. The annual holdings turnover as of September 12, 2012 is very low (5.50%) compared to the average in the category (46.54%).

Best T. Rowe Price Mutual Funds 2012

This domestic stock fund has 5-year annualized return of 1.07%. It also has YTD return of 13.29%. Based on the load adjusted returns, the fund has returned 13.32% over the past 3-year, and 6.23% over the past 10-year. The best 1-year total return was recorded in 1997 with 32.87%.

As part of no load fund, there is no management fee and no front-end sales load fee. The stock mutual fund can be purchased through 92 brokerages such as Merrill Lynch, Schwab Retail, JP Morgan, Vanguard, Ameriprise Brokerage, Firstrade, T. Rowe Price, etc. You can buy this mutual fund with $2,500 initial investment for your brokerage account and $1,000 for retirement account.

As of June 2012, this PREIX fund has a total of 502 holdings. The top 10 holdings represent 20.75% of the total net assets. They are AT&T, Apple, Chevron, Exxon Mobil, General Electric, International Business Machines, Johnson & Johnson, Microsoft, Procter & Gamble and Wells Fargo. The top sectors as of July 2012 are Information Technology (19.4%), Financials (14.0%), Health Care (11.7%), Consumer Staples (11.2%) and Energy (11.0%).

According to the fund prospectus, the principal risks are risks of stock investing, market capitalization risk, index investing risk, tracking error risk, futures risk, etc.

Disclosure: No Position

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