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Best TRPrice Fund Picks Post:COVID-19

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I have been doing extensive research on the TRP family and am trying to find the best blend of <10 funds for this tumultuous period rife with peril and opportunity. I am nearly 50 years old, semi-retired physician, own my home (95%), 6yo kiddo.

I wanted to limit my choices to MS 4-5 star, G/S/B medalists, with lowish YTD losses and good momentum in the last month. Here are 11 I have come up with:

PRHSXHealth Sciences 
TRMCXMid-Cap Value 
PRMTXCommunications & Technology 
PRNHXNew Horizons (90% N.America: 29%Tech, 28%Healthc, 21%Industrials, 6Comm, 6ConC)
PRGSXGlobal Stock (35% tech,19% healthcare, 15% financial, 14% consumer, 6% comm)
Targeted Funds 
TRRDXRetirement 2040: 84%Stock (53%Domestic/31% foreign), 15% Bond, Most GIANT large and Mid
PRWCXCapital Appreciation (50% to 70% Equity) (63Dom+5For) (24Healthc, 21Tech, 14Industrials, 12ComCy, 10Fin, 7Utils, 6Com
TRPBXSpectrum Moderate Allocation (50-70% Equity) 38%DomStk, 23%ForStk; 31% Bond, 6% other, 2.5% cash) (19Tech, 16, Health, 16Financ, 11COmCy, 9Comm) Amazon, Microsoft, Google, Facebook, 
Bond Funds 
PBDIXU.S. Bond Enhanced Index (39%Mortgage, 31%Corporate, 24%Gov) (60%AAA, 7%AA, 14% A, 18% BBB) 
PRFRXFloating Rate--Low grade US corporate
TRBUXUltra Short-Term Bond  (All AAA-BBB), 50%Corporate, 33%mortgage, 16 CASH)

 

Thoughts? I think these are pretty good, but hope I have not spent my week recreating the wheel (of a targeted end date blend that already exists).

 

 

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Explorer ○

Re: Best TRPrice Fund Picks Post:COVID-19

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I'm a big fan of some TRP funds and am invested in 5 of the ones you listed. 

 

PRWCX, PRNHX, and TRMCX are currently closed, even if investing directly with TRP. I don't think those will be options for you unfortunately. Only exception, I believe,  would be if you are rolling an employer 401k into a TRP IRA. In that case, you might be able to get into those closed funds.

 

PRHSX and PRMTX are open only via direct investment with TRP, not via other platforms (like Schwab or Fidelity). So you should have access to those. I have $s in above 5.

 

TRPBX is a moderate allocation fund which is a  reasonable alternative to PRWCX. Also look at RPBAX as an allocation option, and RPGAX (for an allocation fund with International exposure).

 

TRP bond funds are ok, but many look elsewhere for bond options. I don't invest in target funds, so not familiar with those. If you go that route, then that one fund could take care of your core equity and bond allocation, and you might just supplement it with a smaller allocation to the sector funds if desired.

 

Just my 2 cents... :-)    tom

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Re: Best TRPrice Fund Picks Post:COVID-19

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My spouse and I own Comm and Tech and Cap Appreciation (very happy with both) along  with 2010 and 2020 target date funds.  Note that the latter two have good longer term track records but are now lagging peers given higher stock allocations.  You might look at those more closely to determine your comfort level.  We are staying the course with these TRP funds given that we have a broader mix of index funds and Vanguard Wellington.

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Re: Best TRPrice Fund Picks Post:COVID-19

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I'm interested to see how this thread goes. I have PRWCX and PRNHX  and am thinking I should have much more of my port invested in them. They have performed amazingly well over the years and especially during the 2020 crash.

I also have a bit of RPMGX which is a good fund over the years, but comparing it to PRNHX, the latter has been much better. 

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Re: Best TRPrice Fund Picks Post:COVID-19

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I'm a big fan of some TRP funds and am invested in 5 of the ones you listed. 

 

PRWCX, PRNHX, and TRMCX are currently closed, even if investing directly with TRP. I don't think those will be options for you unfortunately. Only exception, I believe,  would be if you are rolling an employer 401k into a TRP IRA. In that case, you might be able to get into those closed funds.

 

PRHSX and PRMTX are open only via direct investment with TRP, not via other platforms (like Schwab or Fidelity). So you should have access to those. I have $s in above 5.

 

TRPBX is a moderate allocation fund which is a  reasonable alternative to PRWCX. Also look at RPBAX as an allocation option, and RPGAX (for an allocation fund with International exposure).

 

TRP bond funds are ok, but many look elsewhere for bond options. I don't invest in target funds, so not familiar with those. If you go that route, then that one fund could take care of your core equity and bond allocation, and you might just supplement it with a smaller allocation to the sector funds if desired.

 

Just my 2 cents... :-)    tom

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Re: Best TRPrice Fund Picks Post:COVID-19

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I have small holdings in PRGSX and RPGAX (the global allocation fund).  Both have done well for me and I will grow the holdings over time.  They are both growth tilted.  RPGAX also has the unusual feature that it is sort of like a 60/40 balanced fund, except it is 60/30/10 with the last 10 being in a blackstone hedge fund of funds.  

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Re: Best TRPrice Fund Picks Post:COVID-19

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It is impressive that New Horizons (PRNHX) is positive for the YTD. I wonder what accounted for that?

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Re: Best TRPrice Fund Picks Post:COVID-19

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Its amazing to me that C&T was up >5% on YTD. That was the best by far that I saw among the 60 MS-4/5star TRP Medalist funds I analyzed.

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Re: Best TRPrice Fund Picks Post:COVID-19

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Thank You I see now that PRWCX (Cap App), PRNHX (N Horizons),  TRMCX (MC-Value) are all "Limited". I have some MC-Value in a Roth IRA, and NH in a 401, so I can add to that. I think I am SOL re: Cap-App though. Bummer! (For the record, MC-Val is reopening to new investors June 5, 2020.)

I agree that TRPBX is a reasonable pass for PRWCX. It lags by 4.5% in the YTD and 2% in the last month. I wonder why. Early gains for Cap-App that would be matched by Spec Mod Allo later on, or was it better picks? Do they share the same manager or analyst bench? (Too tired to look, ATM.)

I like the "idea" of supplementing a target fund with sector funds (and outside bonds), but the Ret-2040 is down -13.8% on the YTD, and up only 2% in the last month. Is it foolhardy to think that the brilliance of its selections will shine later?? Anyway, it's only a bronze 4-star on MS, and the fees are 0.7%. Turnover is only 22% and of the 10 top funds it is composed of1 is 2-star, 2 are 3-star and 7 are 4-star. None are 5-star. I'm starting to wonder if they try to save some of the dog funds by rolling them up into a target fund. I'll be 70 in 2040 and I've had a lot in this fund for a while, but the more I write the more II am getting over my sentimentality.

As a side question, is it fair to think that a fund with more turnover is more "nimble" and/or "maneuverable" in these troubled waters? I found myself thinking that without a solid understanding.

 

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Re: Best TRPrice Fund Picks Post:COVID-19

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PRGSX (Spectrum Moderate Growth Allocation) is a MS Silver 5-start I looked at. Are you concerned that they are down ~12% for the YTD?

For RPGAX (global allocation fund), what do you feel like you gain from 10% Blackstone in the mix?

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Re: Best TRPrice Fund Picks Post:COVID-19

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Just for kicks, if you are at Fidelity you might want to see if you can buy into PRMTX if you are not already in it.  


@TRB2023 wrote:

I'm a big fan of some TRP funds and am invested in 5 of the ones you listed. 

 

PRWCX, PRNHX, and TRMCX are currently closed, even if investing directly with TRP. I don't think those will be options for you unfortunately. Only exception, I believe,  would be if you are rolling an employer 401k into a TRP IRA. In that case, you might be able to get into those closed funds.

 

PRHSX and PRMTX are open only via direct investment with TRP, not via other platforms (like Schwab or Fidelity). So you should have access to those. I have $s in above 5.

 

TRPBX is a moderate allocation fund which is a  reasonable alternative to PRWCX. Also look at RPBAX as an allocation option, and RPGAX (for an allocation fund with International exposure).

 

TRP bond funds are ok, but many look elsewhere for bond options. I don't invest in target funds, so not familiar with those. If you go that route, then that one fund could take care of your core equity and bond allocation, and you might just supplement it with a smaller allocation to the sector funds if desired.

 

Just my 2 cents... :-)    tom


 

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Re: Best TRPrice Fund Picks Post:COVID-19

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I don’t worry much about the drawdown in PRGSX this year.  It is significantly outperforming its category, it is down more than some other funds due to the 50% international holdings,  I’m a believer in international diversification, though it can be painful sometimes :-).

Likewise, RPGAX I view as an analogue of Fidelity Puritan (which I also hold) that is significantly internationally diversified.   It is less growth tilted, I guess.  The interest I has in the blackstone holding is just that with bond yields so low, it is nice to see someone trying something else in the stable portion of the portfolio!  Maybe it will help, maybe it won’t....

 

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Re: Best TRPrice Fund Picks Post:COVID-19

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My 2 cents...I had a TRP Target, but got out of it due to the high % in international.  I am just not that comfortable with a high % in international.  Intl has only outperformed for short bursts.  Looking at a report from my 401(k), maybe 10% of the time in the last decade.  Also with the COVID and following fallout, I feel the USA has the size/funds to deal with the crisis best, so international might struggle longer.  Also why I did not go with either TRP Balanced or Spectrum, too much international.  If you want a balanced fund, Fidelity Balanced or Puritan, or American Balanced have all outperformed the TRP's by 1-2% average per year at 3, 5, or 10 years.

Another pure stock fund you might look at is TRBCX, TRP Blue Chip, which is actually back positive YTD and has done well for years.

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Re: Best TRPrice Fund Picks Post:COVID-19

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Thanks for the nice meaty response!

I took a good look at TRP Blue Chip. I do like that it is mostly domestic and Tech/Comm heavy. That said, it looks a LOT like the other TRP Large Growth funds:

  • Domestic: 90/Foreign:10%
  • Sectors: 25Tech,19Comm,19ComCy,16Health,12Fin
  • Top 10: Amazon, Facebook, Microsoft, Alphabet, Alibaba Visa, Apple, Mastercard, Tencent Holdings, ADR, Netflix

Do you see any reason why this LrgGrwth fund would do better than the (many) others at TRPrice?

 

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Re: Best TRPrice Fund Picks Post:COVID-19

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In my opinion PRWCX, PRNHX, PRGSX, and TRBCX is excellent offerings.  PRWAX is interesting because it has a really good young PM and small AUM.

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Re: Best TRPrice Fund Picks Post:COVID-19

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I would look at ratings in addition to Morningstar...I like Lipper ratings. Also see how your picks compare to their indexes. 

.

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Re: Best TRPrice Fund Picks Post:COVID-19

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Own Cap App,  ComTech,  H Sci, et al

Not clear if the 3 or so other funds containing Blackstone will benefit

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Re: Best TRPrice Fund Picks Post:COVID-19

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Bought PRHSX at Fidelity last week.

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Among the funds listed in the original post, Mid-Cap Value (TRMCX) was closed to new accounts when this thread began in early May--in fact had been closed to new accounts ever since 2010--a point made by other posters above who were also writing in May.

However, on June 5, TRMCX reopened to new accounts.  The prospectus language adds specific qualifying language that this reopening is available to "most investors who invest directly with T. Rowe Price."  I take this to mean that you can purchase in the fund in an IRA or non-retirement account at Price itself, but still not through the mutual fund brokerage function of an "outside" institution.

Among other funds listed in the original post, New Horizons (PRNHX) and Capital Appreciation (PRWCX) are still closed.

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Re: Best TRPrice Fund Picks Post:COVID-19

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@EtoileDuMatin wrote:

Among the funds listed in the original post, Mid-Cap Value (TRMCX) was closed to new accounts when this thread began in early May--in fact had been closed to new accounts ever since 2010--a point made by other posters above who were also writing in May.

However, on June 5, TRMCX reopened to new accounts.  The prospectus language adds specific qualifying language that this reopening is available to "most investors who invest directly with T. Rowe Price."  I take this to mean that you can purchase in the fund in an IRA or non-retirement account at Price itself, but still not through the mutual fund brokerage function of an "outside" institution.


A test trade shows you can buy this at Fidelity if you want. I don't see the attraction.

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Re: Best TRPrice Fund Picks Post:COVID-19

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I'm lucky that I have had PRNHX for a long time. The current manager had a great history with his previous Price fund. My theory about which funds I like: If the fund significantly outperformed the index and other funds in its category for about 8 or more years that's a great fund. Of course, the manager also must have a great long term track record in his previous or current fund, fund fees should be reasonable, respected fund family,  and excellent Morningstar and Lipper ratings. That's why my key funds are PRNHX, TRBCX and VWELX. Of course, the future returns are never guaranteed. What do people think of the above theory? Thanks. 

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