T. Rowe Price Extended Equity Market Index Fund (PEXMX)
Ticker Symbol:
Fund Status:
Open to new Retail investors  /  Open to subsequent Retail investments
Fund Management
Fund Manager
  • Ken D. Uematsu, CFA
  • Managed Fund Since: 05/01/2008
  • Joined Firm On 06/05/1997*
  • M.B.A. University of Maryland, Robert H. Smith School of Business

* Firm refers to T. Rowe Price Associates and Affiliates
Quarterly Commentaries
as of 12/31/2015

U.S. equities rebounded from third-quarter losses as corporate earnings were better than initially expected. U.S. economic and employment growth were solid despite tepid or slowing expansion in other parts of the world. Corporate merger activity and anticipation of additional stimulus measures in Europe were also supportive. The Federal Reserve began to raise short-term interest rates in mid-December, but this widely expected move did not derail the broad equity market, nor did continued commodity price weakness. Large-cap shares outperformed small- and mid-caps for the quarter, and growth stocks outperformed value stocks across all market capitalizations.

The Extended Equity Market Index Fund returned 3.01% in the quarter compared with 3.10% for the S&P Completion Index and 2.77% for the Lipper Mid-Cap Core Funds Index. For the 12 months ended December 31, 2015, the fund returned −3.29% versus −3.35% for the S&P Completion Index and −3.61% for the Lipper Mid-Cap Core Funds Index. The fund's average annual total returns were −3.29%, 10.55%, and 7.86% for the 1-, 5-, and 10-year periods, respectively, as of December 31, 2015. The fund's expense ratio was 0.37% as of its fiscal year ended August 1, 2015.

For up-to-date standardized total returns, including the most recent month-end performance, please click on the Performance tab, above.
Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary and you may have a gain or loss when you sell your shares.
The Extended Equity Market Index Fund charges a 0.5% redemption fee on shares held 90 days or less. The performance information shown does not reflect the deduction of the redemption fee; if it did, the performance would be lower.

Benchmark Definitions

The portfolio tracks the Standard & Poor's Completion Index, which offers investors exposure to mid-, small-, and micro-cap companies. The financials, information technology, and consumer discretionary sectors are the largest components of the index. Health care, information technology, and materials stocks recorded solid results and outperformed the broader index. The energy sector continued to be pressured by declining oil prices and posted a significant loss.

While heightened volatility is likely, there are reasons to take a cautiously optimistic view about equity returns overall despite the difficult environment that the energy and industrial sectors will continue to face. The U.S. economy seems poised to continue its growth trend. The Fed's normalization of monetary policy is expected to proceed at a gradual pace, and the global monetary environment should remain supportive as many central banks continue to pursue accommodative policies. A continuation of the global boom in mergers and acquisitions, along with high levels of share buybacks, could also support equity markets.

See Glossary for additional details on all data elements.