T. Rowe Price Equity Index 500PREIX

Morningstar Rating

Fund Research and Analysis

by Ryan Leggio

Investors don't have to settle for T. Rowe Price Equity Index 500.

We think there are better options for those wishing to own an index fund that tracks the market-cap-weighted S&P 500. With a contractually limited expense ratio of 0.09%, as well as a $100 investment minimum, the Schwab S&P 500 Index SWPPX fund is a much better choice. Read more

Kudos

Tax-efficient.

Broadly diversified. Read more

Risks

The fund's costs are still above those of its cheapest competitors.

Its consistent large-cap bias will cause its relative returns to lag when smaller fare rally. Read more

Strategy

This fund buys the stocks that make up the S&P 500 Index, as well as index futures, in an attempt to mimic the index's returns. The index includes the biggest, most well-known firms in the U.S. stock market, such as ExxonMobil XOM, Microsoft MSFT, and AT&T T. Read more

Management

Fred Bair officially became manager here in December 2002, replacing Richard Whitney after 12 years, but he had been running the fund under Whitney's guidance for about two years prior. Before coming to T. Rowe Price in 2000, Bair worked in various capacities for Monument Investment Advisors, which ran the now-defunct Monument Internet Fund, and before that he was a buy-side trader with Legg Mason. Read more

Inside Scoop

Lower-cost options are available. Read more

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