Editor's note: This is part of a continuing series of articles looking at the 20 biggest no-load stock funds.
As mutual funds put on weight and graduate into the super-heavyweight class, too often they become sluggish and bloated. Yet Dodge & Cox Stock, a mega-fund, has managed its weight gain gracefully. Why?
For one thing, the folks who run Dodge & Cox are a disciplined bunch. Bryan Cameron and Charles Pohl, co-directors of research, explain the rigor that goes into selecting stocks for the portfolio. In-house analysts spend months researching a company before making a purchase recommendation to an investment committee of nine. The average stock holding period is eight years, which Cameron says makes it easier to research companies thoroughly and to manage the portfolio. At last report, Dodge & Cox Stock held 86 stocks, a relatively small number for a $66-billion fund.
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 managers analyze the combination of holdings from multiple angles. "We try to position the portfolio so that it does well under a variety of economic scenarios," says Pohl. This helps to explain the fund's admirable consistency: Dodge & Cox Stock has beaten the average large-cap value fund 13 years out of the past 14. Over the past ten years, the fund has outpaced the typical large-cap-value fund by more than five percentage points per year, on average. Top holdings include Hewlett Packard, Comcast and McDonald's.
The only bad news about this fund is that it's closed to new shareholders. If you're fortunate enough to be a shareholder, we suggest you BUY more shares.
Note: the firm's international fund, Dodge & Cox International Stock (DODFX), as well as bond fund Dodge & Cox Income (DODIX) are open to new investors and are members of the Kiplinger 25.
Want to learn more? Read an interview with Dodge & Cox veterans John Gunn and Diana Strandberg.
FUND FACTS
Dodge & Cox Stock (DODGX)
Assets: $64.8 billion
Manager (year started): team (1965)
Returns (vs. S&P 500)*
2006: 18.5% (15.8%)
Three years annualized: 15.6% (10.4%)
Five years annualized: 12.8% (6.2%)
Ten years annualized: 14.2% (8.4%)
Expense ratio: 0.52%
Portfolio turnover: 12%
Initial minimum investment: $2,500
Phone: 800-621-3979
Web site: www.dodgeandcox.com
*Returns through Dec. 31
Fund Fact sources: Standard & Poor's, Morningstar
View updated data for this fund and compare the performance of the 20 biggest no-load stock funds.
Go to A Close Look at the 20 Biggest No-Load Stock Funds.
-
Stock Market Today: Nasdaq Spirals as Netflix NosedivesA big earnings boom for credit card giant American Express helped the Dow notch another win.
-
Get These 40 Earth Day Deals and DiscountsMonday, April 22, is Earth Day. Many of your favorite retailers are celebrating with deals on sustainable products, recycling services, and more
-
The Kiplinger 25: Our Favorite No-Load Mutual FundsThe Kiplinger 25 The Kiplinger 25 is a list of our top no-load mutual funds that have proven capable of weathering any storm.
-
The 5 Best Actively Managed Fidelity Funds to Buy Nowmutual funds In a stock picker's market, it's sometimes best to leave the driving to the pros. These Fidelity funds provide investors solid active management at low costs.
-
The 12 Best Bear Market ETFs to Buy NowETFs Investors who are fearful about the more uncertainty in the new year can find plenty of protection among these bear market ETFs.
-
Don't Give Up on the Eurozonemutual funds As Europe’s economy (and stock markets) wobble, Janus Henderson European Focus Fund (HFETX) keeps its footing with a focus on large Europe-based multinationals.
-
Best Bond Funds to BuyInvesting for Income The best bond funds provide investors with income and stability – and are worthy additions to any well-balanced portfolios.
-
Vanguard Global ESG Select Stock Profits from ESG Leadersmutual funds Vanguard Global ESG Select Stock (VEIGX) favors firms with high standards for their businesses.
-
Kip ETF 20: What's In, What's Out and WhyKip ETF 20 The broad market has taken a major hit so far in 2022, sparking some tactical changes to Kiplinger's lineup of the best low-cost ETFs.
-
ETFs Are Now Mainstream. Here's Why They're So Appealing.Investing for Income ETFs offer investors broad diversification to their portfolios and at low costs to boot.
