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An Upgrade to Gold for This Small-Cap Fund

T. Rowe Price QM US Small Cap Growth Equity should reward investors over the long term.


Linda Abu Mushrefova: For investors seeking small-cap exposure, T. Rowe Price QM US Small Cap Growth Equity is an excellent option. The fund was recently upgraded from a Morningstar Analyst Rating of Silver to Gold. 

The team uses a quantitative approach to navigate their small-cap growth universe. Their model evaluates and ranks names based on valuation, profitability, and momentum. They place the least emphasis on momentum, which results in relatively low turnover, which is somewhat atypical for a quant strategy but a positive for investors. Finally, the model's output ranks names according to relative attractiveness, and the team uses this information to construct a well-diversified portfolio.

Linda Abu Mushrefova does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.