Look at the tech world lately. It’s basically a whirlwind of AI hype, semiconductor shortages, and software companies trying to figure out how to charge you more for "intelligence." If you’re trying to invest in this mess, you've probably run into the T. Rowe Price Science and Technology Fund. It’s been around since 1987. That’s forever in tech years. Back then, "high tech" was a Macintosh II and a floppy disk.
Honestly, the fund has changed a lot. It’s not just a dusty relic of the dot-com era. Currently managed by Ken Allen—who took the reins after some leadership shifts in recent years—it’s a massive vehicle with over $11 billion in assets. But is it actually any good for your portfolio today? Or is it just a bloated basket of the same "Magnificent Seven" stocks you already own in your S&P 500 index fund?
What’s actually inside the T. Rowe Price Science and Technology Fund?
Most people assume a "science and technology" fund is just code for "Silicon Valley software." Sorta. While the fund (ticker: PRSCX for the investor class) is heavily weighted in the software and semiconductor sectors, it’s technically a "non-diversified" fund. That's a fancy way of saying the manager can bet big on a few names without the SEC breathing down their neck about being too concentrated.
As of early 2026, the top of the list looks pretty familiar. You’ve got the heavy hitters like NVIDIA, Apple, and Microsoft taking up massive chunks of the pie. In fact, the top 10 holdings often represent over 50% of the total assets. That is a lot of eggs in a very small number of baskets.
But here is the twist: Ken Allen has been leaning into what T. Rowe calls "physical AI."
Instead of just betting on the companies making chatbots, the fund has been scouting for the "picks and shovels" of the next decade. Think power management, electrical infrastructure, and advanced materials. They are looking at the stuff that keeps the data centers cool and the power grid from melting down under the weight of all those GPU clusters.
The Breakdown (by the numbers)
If you look at the sector weightings, it’s not just one big blob of tech. It’s split up in a way that tries to capture different parts of the ecosystem:
- Semiconductors: This is usually the largest slice, often hovering around 30-35%.
- Software: Usually the runner-up, focused on enterprise AI and cloud transitions.
- Hardware: Think iPhones and Macbooks, but also server infrastructure.
- Interactive Media: This covers the Alphabets and Metas of the world.
The expense ratio sits at roughly 0.79%. In a world where you can buy a Vanguard tech ETF (VGT) for basically pennies (0.10%), 79 basis points feels a bit steep to some. You’re paying for the active management—the hope that Ken Allen and his team can dodge the next bubble or find the next Nvidia before it's actually Nvidia.
Performance: The 2025 Growth Scare and the 2026 Rebound
Let’s be real—2022 was a nightmare for tech. The T. Rowe Price Science and Technology Fund got hammered, dropping over 35%. It was a brutal reminder that when interest rates go up, high-flying tech stocks are the first to lose their wings.
However, the recovery has been aggressive. In 2023 and 2024, the fund posted massive gains, fueled by the AI explosion. By the end of 2025, the fund was returning about 24% for the year, outperforming the broader Russell 3000 index.
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But it’s a bumpy ride. The fund has a high "beta," which is a nerd-term for "this thing moves way more than the market." If the S&P 500 drops 1%, this fund might drop 1.5%. If the market goes up, it might rocket. It’s not for the faint of heart or people who check their balance every morning and get a stomach ache when the line goes down.
Why this fund is different from a basic Index Fund
You might be thinking, "Why don't I just buy QQQ and call it a day?"
It's a fair question. The Nasdaq-100 (QQQ) is the benchmark everyone looks at. But the T. Rowe Price Science and Technology Fund is different because it can go "off-menu."
While QQQ is stuck with whatever the 100 biggest non-financial companies are, PRSCX can hunt for smaller, mid-cap gems. They recently held a significant position in Palantir long before it became a retail investor darling. They also play in the private markets occasionally—though rarely—and can invest in foreign stocks like TSMC (Taiwan Semiconductor) or ASML in the Netherlands.
There's also the "active" part. In late 2025, the management started talking about "valuation discipline." They actually trimmed some of the hottest AI names because the prices were getting stupid. An index fund can't do that. An index fund has to keep buying as long as the stock stays big.
The risks nobody talks about
It’s not all sunshine and 20% returns. There are some real "gotchas" with this fund.
First, the turnover is high. We’re talking over 200% turnover in some years. This means the manager is buying and selling stocks constantly. If you hold this in a regular taxable brokerage account (not an IRA or 401k), you might get hit with some nasty capital gains distributions at the end of the year, even if the fund's price didn't go up much.
Second, the "non-diversified" status is a double-edged sword. If Apple has a bad year, or if there's a specific regulatory crackdown on semiconductors, this fund doesn't have a "safety net" of consumer staples or utility stocks to break the fall. It’s tech, tech, and more tech.
Third, there is the "manager risk." Ken Allen is a veteran, but active management depends on human intuition. If the team misreads the shift from "digital AI" to "physical AI," the fund could lag behind its benchmarks for years.
How to actually use PRSCX in your portfolio
So, should you buy it? Honestly, it depends on what else you have.
If your 401k is already 100% in an S&P 500 index fund, you already have a massive exposure to the top holdings of the T. Rowe Price Science and Technology Fund. Adding this on top might just be "doubling down" on the same risks.
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But if you have a diversified base and you want a "satellite" position—basically a high-octane booster to capture tech growth—it’s one of the most respected names in the business.
Actionable Next Steps
- Check your overlap. Use a tool like Morningstar’s "Instant X-Ray" to see how much of your current portfolio is already in the top 10 tech stocks. If it’s over 30%, adding PRSCX might be overkill.
- Look at the share class. If you have a huge amount to invest (over $500,000), look for the "I" class shares (PRTIX). The expense ratio is lower, which saves you a ton of money over a decade.
- Mind the minimums. The investor class (PRSCX) usually requires a $2,500 initial investment. If you’re starting smaller, you might need to look at ETFs instead.
- Set a "rebalance" rule. Because this fund is so volatile, it can quickly grow to become 50% of your portfolio if tech has a monster year. Decide now that if it hits a certain percentage of your net worth, you’ll sell some and move it to boring stuff like bonds or cash.
Tech isn't going anywhere, but the winners of the next ten years probably won't be the same as the winners of the last ten. Having a professional team at T. Rowe Price trying to figure out who those new winners are is a valid strategy, as long as you can handle the rollercoaster ride that comes with it.