Investing in a new mutual fund is usually a crapshoot. But if any new fund deserves the benefit of the doubt, it's Dodge & Cox Global Stock. It's only the fifth fund from Dodge & Cox in the firm's nearly 80 years of existence.
Based in San Francisco, Dodge & Cox has achieved near-cult status among fund aficionados, thanks to strong long-term results, low fees and an almost quaint, committee-oriented approach to picking stocks and bonds. Analysts pitch ideas for the firm's three stock funds (a fourth fund focuses on bonds). Committee members then vet and stress-test the proposals, with an eye toward identifying stocks that are cheap in relation to a company's earnings and cash-flow prospects over the next three to five years.
The new fund will cull investment ideas from the same set of stocks that populate the firm's domestic and foreign stock funds. So far, so good: Dodge & Cox Stock, which invests mostly in U.S. companies, has returned 13% annualized over the past 15 years to May 1, beating 99% of its peers. The younger International has gained 26% annualized over the past five years, beating 98% of its rivals.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The principals at Dodge & Cox say the new fund will adhere to the same principles as the older funds. "This is the same process and the same team," says Diana Strandberg, a 19-year veteran and one of the managers of the new fund. Initially, at least, Global (symbol DODWX) will invest in companies from the existing portfolios of Stock and International. But because the committee members of Global will not overlap completely with those of Stock and International, Global could buy stocks not owned by the others. As of March 31, Stock's biggest holdings were Comcast, Hewlett-Packard and Wachovia, while International's were Novartis, Schneider Electric and HSBC Holdings. Global's annual expense ratio will start at 0.90%, well below the average of 1.54% for worldwide-stock funds.
So if Global cherry-picks the best of Stock and International, should you expect it to leave those two in the dust? "Our general counsel has warned us not to say that," says Charles Pohl, the firm's chief investment officer and a manager of Global.
-
Best Banks for High-Net-Worth Clients 2024wealth management These banks welcome customers who keep high balances in deposit and investment accounts, showering them with fee breaks and access to financial-planning services.
-
Stock Market Holidays in 2024: NYSE, NASDAQ and Wall Street HolidaysMarkets When are the stock market holidays? Here, we look at which days the NYSE, Nasdaq and bond markets are off in 2024.
-
Stock Market Trading Hours: What Time Is the Stock Market Open Today?Markets When does the market open? While the stock market does have regular hours, trading doesn't necessarily stop when the major exchanges close.
-
Bogleheads Stay the CourseBears and market volatility don’t scare these die-hard Vanguard investors.
-
The Current I-Bond Rate Until May Is Mildly Attractive. Here's Why.Investing for Income The current I-bond rate is active until November 2024 and presents an attractive value, if not as attractive as in the recent past.
-
What Are I-Bonds? Inflation Made Them Popular. What Now?savings bonds Inflation has made Series I savings bonds, known as I-bonds, enormously popular with risk-averse investors. So how do they work?
-
This New Sustainable ETF’s Pitch? Give Back Profits.investing Newday’s ETF partners with UNICEF and other groups.
-
As the Market Falls, New Retirees Need a Planretirement If you’re in the early stages of your retirement, you’re likely in a rough spot watching your portfolio shrink. We have some strategies to make the best of things.
