T. Rowe Price Tax-Free High Yield Fund
Actively managed U.S. bond fund
As of its 2026 Q2 report, T. Rowe Price Tax-Free High Yield Fund held 1,069 positions with $3.62B in net assets. Its ten largest holdings made up 8.7% of the fund. The PRFHX share class costs 0.63% a year. Over the 12 months to May 2026, PRFHX returned 9.0%, with dividends reinvested. In 2026 Q2 it added 58 new positions and exited 18.
The fund seeks to provide a high level of income exempt from federal income taxes by investing primarily in long-term low- to upper-medium-grade municipal securities.
The fund invests primarily in longer-term municipal bonds whose income is exempt from federal income taxes, with emphasis on higher-yielding securities including those rated below investment grade. T. Rowe Price uses fundamental credit research to select bonds across municipal sectors and issuers, managing duration and diversification to balance yield with risk. The fund may invest significantly in sectors with special risks such as health care, transportation, and utilities.
What you own
| Company | Weight | Value | Shares |
|---|---|---|---|
PR SALES TAX FING SALES TAX REV SER A1 0.00% · due 2046-07-01 | 1.67% | $60.39M | — |
BUCKEYE OH TOB STLMT SR B-2 CL 2 5.00% · due 2055-06-01 | 1.58% | $57.06M | — |
PR SALES TAX FING SALES TAX REV SER A1 5.00% · due 2058-07-01 | 1.08% | $39.26M | — |
MET PIER EXPO MCCORMICK A 0.00% · due 2033-12-15 | 0.98% | $35.36M | — |
GOLDEN ST TOBACCO SEC TOBACCO SUB SR B-2 0.00% · due 2066-06-01 | 0.74% | $26.77M | — |
TOB SETTLE FING CORP NJ SER B 5.00% · due 2046-06-01 | 0.59% | $21.51M | — |
PR COMWLTH SUBSER PRIFA RUM TXBL 0.00% · due 2051-11-01 | 0.56% | $20.41M | — |
CA CMNTY HSG STONERIDGE APTS SER A 144A 4.00% · due 2056-02-01 | 0.50% | $18.19M | — |
PUB FIN AUTH-AMT AMT 5.75% · due 2060-06-30 | 0.50% | $17.99M | — |
PR COMWLTH CVI-SUBSER CW HTA 98 TXBL 0.00% · due 2051-11-01 | 0.48% | $17.52M | — |
The 200 largest of 1,069 holdings, with the share counts as filed, open with a free account.
What the fund is made of
Percentages are of fund net assets. Rounding, liabilities and short positions can make totals differ from 100%.
| Bonds | 98.99% |
| Securitized | 0.14% |
| Stocks | 0.00% |
How it has done
PRFHX share class · total returns with dividends reinvested
Volatility over the last 12 months: 4.58%. Past returns are a record, not a forecast.
The 3 share classes hold the same portfolio
| Share class | Expense ratio | 1 year | 3 years | 5 years | Worst fall |
|---|---|---|---|---|---|
| 0.63% | +8.97% | +17.96% | +7.13% | -6.46% | |
| 0.97% | +8.53% | +16.77% | +5.38% | -6.51% | |
| 0.50% | +9.14% | +18.47% | +7.86% | -6.35% |
These classes hold the same portfolio, so the 2.48pp spread over 5 years is the cost difference between them — roughly 0.50pp a year — not a difference in what they own.
Fees & fund details
T. Rowe Price Tax-Free High Yield Fund is an actively managed U.S. bond fund. 39% of PRFHX’s stock holdings are in companies whose revenue grew in the top quartile of U.S. companies over the last five fiscal years (covering 100% of the fund’s equity).
- Asset class
- Bonds
- Region
- United States
- Management
- Actively managed
- Fund type
- Open-end fund
- Credit quality
- High yield
- Rate sensitivity
- Intermediate duration
- Expense ratio, by class
- 0.50% – 0.97%· PRFHX 0.63%
- Portfolio turnover
- 18.80% a year · as of 2026 Q2
Turnover is how much of the portfolio was replaced in a year.
Classified from what the fund holds, not from its name · 2026 Q2. The summary is a paraphrase of the prospectus; the objective is verbatim.
What changed this quarter
Positions that entered or left the fund since its previous filing. Positions that were only resized are not listed.
58 new· the largest 8
18 exited· the largest 7
Debt profile
What this fund holds — value-weighted across its bond and securitized long positions · as of 2026-05-31
Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.
| Fixed rate | 83.5% |
| Zero-coupon or unclassified | 10.5% |
| Floating rate | 6.1% |
Share of the fund's debt value in each maturity band, shortest first.
| <1y | 0.7% |
| 1-3y | 1.4% |
| 3-5y | 2.8% |
| 5-10y | 10.6% |
| 10y+ | 84.6% |
These three overlap — one holding can be in arrears and paying in kind at once — so they are shown separately and never summed.
Risk profile
Interest-rate and credit-spread sensitivity, both in years · as of 2026Q2
Most of this fund’s sensitivity is to interest rates, with credit spreads carrying nearly as much.
Where the loss would come from. The two shocks are the same size, so this is the balance of the fund's two sensitivities rather than a bet on one moving more.
| Interest rates | 51% |
| Credit spreads | 49% |
Filers report the impact of a 0.01% move only, so the total is our own scaling of that one number and overstates the loss on most bonds — read it as approximate, never as precise. The two sensitivities overlap rather than add up: they measure the same positions against different shocks, which is why the durations above are shown side by side and never summed.
Share of the fund's spread duration carried by each credit tier.
| High yield | +3.85 yr |
| Investment grade | +2.93 yr |
Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.
| 3 mo | 0.15 yr | 2% |
| 1 yr | 0.28 yr | 4% |
| 5 yr | 1.38 yr | 20% |
| 10 yr | 2.87 yr | 41% |
| 30 yr | 2.28 yr | 33% |
| 3 mo | 0.10 yr | 2% |
| 1 yr | 0.28 yr | 4% |
| 5 yr | 1.36 yr | 20% |
| 10 yr | 2.81 yr | 42% |
| 30 yr | 2.23 yr | 33% |
The two bands measure the same positions against different shocks and do not add — a Treasury carries rate duration and no spread duration, a floating-rate credit the reverse. Rate tenors are also summed across every currency the fund discloses.
Show the numbers
| Tenor | Rate yrs | IG yrs | HY yrs | IG $/bp | HY $/bp |
|---|---|---|---|---|---|
| 3 mo | +0.15 | +0.05 | +0.05 | $18.4k | $18.5k |
| 1 yr | +0.28 | +0.14 | +0.14 | $50.3k | $49.7k |
| 5 yr | +1.38 | +0.81 | +0.55 | $294.5k | $197.9k |
| 10 yr | +2.87 | +1.22 | +1.59 | $442.0k | $576.3k |
| 30 yr | +2.28 | +0.70 | +1.52 | $253.8k | $551.6k |
Dollar change per 1bp of spread movement, as filed and sign-anchored. A blank cell was not filed; a zero was.
Understand how this fund fits with the rest.
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