Fund Evaluator:
T. Rowe Price GNMA (PRGMX)
Follow This Fund
Best Performing in Government Mortgage-Backed Bond Over the Last Year
| 5.4% | Fidelity Advisor Mortgage Securities Z (FIKUX) |
| 5.3% | Vanguard Mortgage-Backed Secs Idx Adm (VMBSX) |
| 5.2% | Fidelity Mortgage Securities (FMSFX) |
| 5.2% | Fidelity GNMA (FGMNX) |
| 5.0% | RBC BlueBay Access Cptl Community InvmIS (ACATX) |
Fund Details
T. Rowe Price GNMA Overview
T. Rowe Price GNMA (PRGMX) is an actively managed Taxable Bond Government Mortgage-Backed Bond fund. T. Rowe Price launched the fund in 1985.
The investment seeks high current income consistent with high overall credit quality and moderate price fluctuation by investing at least 80% of its total assets in Government National Mortgage Association securities backed by the full faith and credit of the U.S. government. The fund will normally invest at least 80% of its total assets in mortgage-backed securities issued by the Government National Mortgage Association (GNMA), an agency of the U.S. Department of Housing and Urban Development. Up to 20% of its total assets may be invested in high-quality securities that are not backed by the full faith and credit of the U.S. government.
About T. Rowe Price GNMA (PRGMX)
There are 1 members of the management team with an average tenure of 3.34 years: Ramon Castro (2023). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and Bloomberg GNMA TR USD index with a weighting of 100%. T. Rowe Price GNMA has 621 securities in its portfolio. The top 10 holdings constitute 35.6% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
T. Rowe Price GNMA is part of the Fixed Income global asset class and is within the Taxable Bond fund group. T. Rowe Price GNMA has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 109.6% (109.6% domestic bond, 0.0% foreign bond and 0.0% convertible bond). T. Rowe Price GNMA has -9.6% of the portfolio in cash.
Assets Under Management
The fund has $188 million in total assets, which is below the $337 million average for the Government Mortgage-Backed Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
PRGMX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The T. Rowe Price GNMA expense ratio is above average compared to funds in the Government Mortgage-Backed Bond category. T. Rowe Price GNMA has an expense ratio of 0.62%, which is 30% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. T. Rowe Price GNMA has a portfolio turnover rate of 256%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 367% for the Government Mortgage-Backed Bond category.
Recently, in the month of June 2026, T. Rowe Price GNMA returned 0.2%, which earned it a grade of C, as the Government Mortgage-Backed Bond category had an average return of 0.2%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
T. Rowe Price GNMA has a trailing yield of 3.73%, which is below the 3.81% category average. The fund normally distributes its income monthly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
T. Rowe Price GNMA Grades
Year to date, the fund has returned 1.2%, 0.4 percentage points better than the category, which translates into a grade of A. The fund has returned 4.8% over the past year (grade of B), 4.2% over the past three years (grade of C) and 0.3% per year over the past five years (grade of C) and 1.1% per year over the past 10 years (grade of C).
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PRGMX Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| PRGMX Return (NAV) | 0.2% | 0.7% | 4.8% | 4.2% | 0.3% | 1.1% |
| PRGMX Grade | C | A | B | C | C | C |
| +/- Category | -0.0% | 0.3% | 0.6% | 0.0% | -0.1% | -0.0% |
| Government Mortgage-Backed Bond Avg | 0.2% | 0.4% | 4.2% | 4.2% | 0.4% | 1.1% |
| PRGMX Tax Cost Ratio | na | na | 1.5% | 1.5% | 1.2% | 1.1% |
PRGMX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| PRGMX Return (NAV) | 1.2% | 7.3% | 0.9% | 5.1% | -11.0% | -2.2% | 4.2% | 5.2% | 0.6% | 1.2% | 1.7% |
| PRGMX Grade | A | D | C | A | C | F | C | D | C | D | B |
| +/- Category | 0.4% | -0.3% | -0.3% | 0.7% | -0.5% | -0.8% | -0.2% | -0.0% | 0.1% | -0.1% | 0.3% |
| Government Mortgage-Backed Bond Avg | 0.8% | 7.6% | 1.2% | 4.4% | -10.5% | -1.4% | 4.4% | 5.2% | 0.5% | 1.3% | 1.4% |
| Risk Measures | |
| Standard Deviation: | 5.9% |
| Total Risk Index: | 0.49 - Below Average |
| Category Risk Index: | 1.05 - Below Average |
| Category Risk Grade: | B (31% Rank) |
| Beta: | 1.06 |
| R-Squared: | 99% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | na |
| Yield: | 3.7% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $341 Mil |
| Fund Total Assets: | $ 188 Mil |
| Share Class Type: | Inv |
| Portfolio Turnover: | 256% |
Management Team
| Number of Managers: 1 | |||
| Longest Tenure: 3.3 years | |||
| Average Tenure: 3.3 years | |||
| Managers (Year): Castro Ramon (2023) | |||
Portfolio Composition (as of 4/30/26)
| # of Holdings: | 621 |
| % in Top 10 Holdings: | 35.6% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.0% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 109.6% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | -9.6% |
Purchase Information
| Fund Family: | T. Rowe Price |
| Phone Number: | 800-638-5660 |
| Website: | www.troweprice.com |
| Status: | Open |
| Inception Date: | November 26, 1985 |
| Min. Initial Purchase: | $2,500 |
| Min. Initial IRA Purchase: | $1,000 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.62% ( Rating : Above Avg ) |
| Category Average Expense Ratio (%): | 0.89% |
| Share Class: | T. Rowe Price GNMA |
| Min. Subsequent Purchase: | $ 100 |
| Min. Subsequent IRA Purchase: | $ 100 |
