T. Rowe Price Equity Index 500 Fund
The fund’s Board of Directors has approved lowering the fund’s expense limitation from 0.30% to 0.25%, effective September 1, 2016. On page 1, the fee table and expense example are revised as follows, effective September 1, 2016, to reflect the reduction of the expense limitation:
Fees and Expenses of the Fund
Shareholder fees (fees paid directly from your investment) | |
Maximum sales charge (load) imposed on | NONE |
Maximum deferred sales charge (load) | NONE |
Redemption fee (as a percentage of amount redeemed on shares held for 90 days or less) | 0.50% |
Maximum account fee | $20a |
Annual fund operating expenses | |
Management fees | 0.10% |
Distribution and service (12b-1) fees | 0.00% |
Other expenses | 0.17% |
Total annual fund operating expenses | 0.27% |
Fee waiver/expense reimbursement | (0.02)%b,c |
Total annual fund operating expenses after fee waiver/expense reimbursement | 0.25%b,c |
a Subject to certain exceptions, accounts with a balance of less than $10,000 are charged an annual $20 fee.
b Restated to reflect current fees.
c T. Rowe Price Associates, Inc. has agreed (through April 30, 2019) to waive its fees and/or bear any expenses (excluding interest, expenses related to borrowings, taxes and brokerage, extraordinary expenses, and acquired fund fees) that would cause the fund’s ratio of expenses to average daily net assets to exceed 0.25%. The agreement may be terminated at any time beyond April 30, 2019, with approval by the fund’s Board of Directors. Fees waived and expenses paid under this agreement (and a previous limitation of 0.30%) are subject to reimbursement to T. Rowe Price Associates, Inc. by the fund whenever the fund’s expense ratio is below 0.25%. However, no reimbursement will be made more than 3 years after the waiver or payment, or if it would result in the expense ratio exceeding 0.25% (excluding interest, expenses related to borrowings, taxes and brokerage, extraordinary expenses, and acquired fund fees).
Example This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year, the fund’s operating expenses remain the same, and the expense limitation currently in place is not renewed. The figures have been adjusted to reflect fee waivers or expense reimbursements only in the periods for which the expense limitation arrangement is expected to continue. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
1 year | 3 years | 5 years | 10 years |
$26 | $81 | $146 | $338 |
Additionally, effective September 1, 2016, the second paragraph under the heading, “The Management Fee,” relating to the fund’s previous expense limitation of 0.30% is removed from pages 29 and 30 of the prospectus.
F50-041 8/10/16