T. Rowe Price Target Retirement 2005 Fund

Frequently Asked Questions About TRARX

What does TRARX invest in?

This fund aims to deliver the maximum possible overall return over the long term, balancing both capital appreciation and income generation. It accomplishes this by allocating its assets across a broad range of T. Rowe Price's own stock and bond mutual funds, covering diverse asset classes and market segments. The fund's investment strategy is specifically tailored to its namesake target retirement year of 2005, assuming an investor intends to retire around age 65. This target date signifies the approximate year when an investor is expected to cease employment and typically stop contributing new capital to the fund.

What is the expense ratio of TRARX?

T. Rowe Price Target Retirement 2005 Fund (TRARX) charges an expense ratio of 0.45%. This is the annual fee deducted from fund assets to cover management and operations.

What is TRARX's dividend yield?

TRARX's trailing-twelve-month yield is 5.73%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of TRARX?

Effective duration measures TRARX's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. TRARX's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of TRARX?

TRARX's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of TRARX?

Yield to maturity (YTM) is the total return you'd earn from TRARX if every bond in the portfolio is held to maturity at the current price. TRARX's YTM is published on the fund's factsheet on the issuer's website. It differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.