Fund Evaluator:
T. Rowe Price Short-Term Bond (PRWBX)
Follow This Fund
Best Performing in Short-Term Bond Over the Last Year
| 5.4% | Janus Henderson Low Dur Mlt-Sct Inc D (JUCDX) |
| 5.2% | Thompson Bond (THOPX) |
| 5.1% | Destinations Low Duration Fixed Inc Z (DLDZX) |
| 4.8% | Channel Income Fund (CPSIX) |
| 4.5% | American Century Short Dur Strat Inc Y (ASYDX) |
Fund Details
T. Rowe Price Short-Term Bond Overview
T. Rowe Price Short-Term Bond (PRWBX) is an actively managed Taxable Bond Short-Term Bond fund. T. Rowe Price launched the fund in 1984.
The investment seeks a high level of income consistent with minimal fluctuation in principal value and liquidity. The fund invests in a diversified portfolio of short- and intermediate-term investment-grade corporate, government, and asset- and mortgage-backed securities. It may also invest in money market securities, bank obligations, collateralized mortgage obligations, and foreign securities, including securities of issuers in emerging markets. The fund will invest at least 80% of its net assets (including any borrowings for investment purposes) in bonds. Its average effective maturity will normally not exceed three years.
About T. Rowe Price Short-Term Bond (PRWBX)
There are 2 members of the management team with an average tenure of 7.10 years: Michael Reinartz (2015), Steven Kohlenstein (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 US Govt/Credit 1-3 Yr TR USD index with a weighting of 100%. T. Rowe Price Short-Term Bond has 1023 securities in its portfolio. The top 10 holdings constitute 22.7% 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 Short-Term Bond is part of the Fixed Income global asset class and is within the Taxable Bond fund group. T. Rowe Price Short-Term Bond has 15.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.6%. 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 94.9% (80.0% domestic bond, 15.0% foreign bond and 0.2% convertible bond). T. Rowe Price Short-Term Bond has 4.2% of the portfolio in cash.
Assets Under Management
The fund has $1 billion in total assets, which is above the $893 million average for the Short-Term 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.
PRWBX 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 Short-Term Bond expense ratio is average compared to funds in the Short-Term Bond category. T. Rowe Price Short-Term Bond has an expense ratio of 0.47%, which is 29% 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 Short-Term Bond has a portfolio turnover rate of 107%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 134% for the Short-Term Bond category.
Recently, in the month of June 2026, T. Rowe Price Short-Term Bond returned -0.1%, which earned it a grade of F, as the Short-Term Bond category had an average return of 0.1%. 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 Short-Term Bond has a trailing yield of 4.19%, which is above the 4.15% 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 Short-Term Bond Grades
Year to date, the fund has returned 0.7%, 0.2 percentage points worse than the category, which translates into a grade of D. The fund has returned 3.3% over the past year (grade of C), 5.0% over the past three years (grade of D) and 2.2% per year over the past five years (grade of C) and 2.3% per year over the past 10 years (grade of C).
For more mutual fund grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.
Otherwise, for more information about T. Rowe Price Short-Term Bond, including its riskiness, submit your email to unlock the rest of the article.
Gain access to exclusive AAII member-only content.
PRWBX 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 |
|
| PRWBX Return (NAV) | -0.1% | 0.6% | 3.3% | 5.0% | 2.2% | 2.3% |
| PRWBX Grade | F | D | C | D | C | C |
| +/- Category | -0.2% | -0.2% | -0.2% | -0.2% | -0.1% | -0.0% |
| Short-Term Bond Avg | 0.1% | 0.8% | 3.5% | 5.2% | 2.3% | 2.3% |
| PRWBX Tax Cost Ratio | na | na | 1.7% | 1.6% | 1.3% | 1.1% |
PRWBX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| PRWBX Return (NAV) | 0.7% | 5.7% | 5.1% | 5.1% | -4.5% | -0.2% | 4.5% | 4.3% | 1.4% | 1.3% | 1.6% |
| PRWBX Grade | D | C | C | D | B | C | B | D | A | D | D |
| +/- Category | -0.2% | -0.2% | 0.1% | -0.5% | 0.5% | -0.2% | 0.3% | -0.5% | 0.7% | -0.5% | -0.9% |
| Short-Term Bond Avg | 0.9% | 5.9% | 4.9% | 5.6% | -5.0% | -0.0% | 4.2% | 4.8% | 0.7% | 1.8% | 2.5% |
| Risk Measures | |
| Standard Deviation: | 1.6% |
| Total Risk Index: | 0.13 - Low |
| Category Risk Index: | 0.79 - Low |
| Category Risk Grade: | A (18% Rank) |
| Beta: | 0.23 |
| R-Squared: | 71% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Large-Cap Growth |
| Bond Investment Style: | High Quality Limited Sensitivity |
| Yield: | 4.2% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $5339 Mil |
| Fund Total Assets: | $1,207 Mil |
| Share Class Type: | Inv |
| Portfolio Turnover: | 107% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 11.4 years | |||
| Average Tenure: 7.1 years | |||
| Managers (Year): Reinartz Michael (2015), Kohlenstein Steven (2023) | |||
Portfolio Composition (as of 4/30/26)
| # of Holdings: | 1023 |
| % in Top 10 Holdings: | 22.7% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 15.0% |
Portfolio Allocation |
|
| Domestic Stock: | 0.6% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 80.0% |
| Foreign Bond: | 15.0% |
| Convertible Bond: | 0.2% |
| Other: | 0.0% |
| Cash: | 4.2% |
Purchase Information
| Fund Family: | T. Rowe Price |
| Phone Number: | 800-638-5660 |
| Website: | www.troweprice.com |
| Status: | Open |
| Inception Date: | March 2, 1984 |
| 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 (%): | 0.47% ( Rating : Avg ) |
| Category Average Expense Ratio (%): | 0.66% |
| Share Class: | T. Rowe Price Short-Term Bond |
| Min. Subsequent Purchase: | $ 100 |
| Min. Subsequent IRA Purchase: | $ 100 |
