equities | june 4, 2025
A history of outperformance through all market environments
T. Rowe Price U.S. equity funds have delivered better returns than indexes in both up and down markets.
Key Insights
Over the last 30 years, T. Rowe Price U.S. equity funds have a history of beating indexes in up markets and down.
In periods when markets were down between 1995 and 2024, our U.S. Equity funds delivered better returns 90% of the time.
During up markets, these funds outperformed indexes in 67% of periods analyzed.
If you’ve been investing for a while, you’ve probably experienced a variety of market environments.
Over the last 30 years, investors have seen lengthy stretches of positive market performance, sudden and deep market downturns, rapid rebounds, volatility, and periods of calm. Investors’ success in reaching their long-term financial goals has depended on the ability of their investments to deliver strong performance through these changes.
As active investment managers, our goal is to deliver better returns than indexes, regardless of how markets behave. We succeed when our funds generate higher returns during strong markets and when they limit investor losses when markets drop. When our funds succeed, our clients can succeed, too. Our U.S. equity funds have a track record of delivering on this goal.
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Higher returns through up and down markets, time and time again
T. Rowe Price examined the performance of 18 U.S. equity funds between 1995 and 2024, specifically looking at five-year monthly rolling periods during that time. Investors during this 30-year period experienced it all.
There were runs of generally strong markets between 1995 and 2000, 2003 and 2007, and 2009 and 2017. But down markets followed the collapse of the tech sector in 2001 and 2002, and markets declined steeply in 2008 during the global financial crisis.
Our analysis revealed a track record of beating benchmarks most of the time over this 30-year timeline, whether markets were up or down.
In periods where benchmarks were positive, our U.S. equity funds performed better in over 67% of cases. On the flip side, when benchmarks showed negative returns, these funds performed better in over 90% of periods.
Proven performance across all markets
T. Rowe Price equity funds’ performance relative to their benchmarks.*
Analysis of 18 T. Rowe Price U.S. equity funds during 5-year monthly rolling periods from 12/31/1995 to 12/31/2024.
Past performance is no guarantee of future results.
* Results based on an analysis of T. Rowe Price’s active, diversified U.S. equity mutual funds (oldest share class). Index, sector, specialized, and institutional clones of our retail funds were excluded. Of T. Rowe Price’s 25 diversified U.S. equity funds, 18 met the criteria for the analysis and are represented within.
One of the 18 funds, the Capital Appreciation Fund, also has the ability to invest in fixed income assets but is primarily an equity portfolio and benchmarked to the S&P 500 Index. The funds included in the analysis represented over 75% of total U.S. equity assets in the domestic and global equity mutual funds advised by the firm as of 12/31/24. Results for other time periods will differ. All investments are subject to risk, including the possible loss of principal.
What excess returns and money saved can mean for investors
T. Rowe Price investment professionals have managed portfolios through multiple market cycles, and our portfolio managers average 23 years in the industry.1 They know that any additional return during up markets can compound over time, potentially generating meaningful higher balances for investors.
They understand how to navigate through difficult periods, learning from experience that every dollar saved during a market downturn is a dollar you can invest later, potentially resulting in more money for you over time.
That’s the power of the T. Rowe Price active management approach—experts asking better questions for a dynamic, holistic view that can lead to better investor outcomes through up and down markets.
Call 1-800-225-5132 to request a prospectus or summary prospectus; each includes investment objectives, risks, fees, expenses, and other information you should read and consider carefully before investing.
1As of 12/31/24.
Important Information
This material is provided for general and educational purposes only and is not intended to provide legal, tax, or investment advice. This material does not provide fiduciary recommendations concerning investments; it is not individualized to the needs of any specific benefit plan or retirement investor, nor is it intended to serve as the primary basis for investment decision-making.
Past performance is no guarantee of future results.
All investments are subject to risk, including the possible loss of principal. Small-cap and mid-cap stocks are generally more volatile than stocks of large, well-established companies. All charts and tables are shown for illustrative purposes only.
T. Rowe Price Investment Services, Inc., distributor, T. Rowe Price mutual funds.
202505-4540565
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