Global equity fund researchers should consider taking a look at the Dodge & Cox Global Stock Fund (DODWX). DODWX has a Zacks Mutual Fund Rank of 2 (Buy), based on nine forecasting factors such as size, cost, and past performance.
Zacks classifies DODWX as Global – Equity, which is a segment filled with options. Global equity mutual funds invest in large markets like the United States, Europe, and Japan, and operate with very few geographic boundaries. They also provide an investment technique that takes advantage of the diverse nature of the global economy in the hope of providing a stable return.
Fund / manager history
DODWX is part of the Dodge & Cox family, based in Boston, MA. Dodge & Cox Global Stock Fund debuted in May 2008, and since then DODWX has accumulated approximately $ 10.38 billion in assets, according to the most recent date available. A team of investment professionals is the current manager of the fund.
Of course, investors look for strong performance in funds. This particular fund delivered a 5-year total annualized return of 13.25%, and it sits in the middle third among its peers in the category. But if you’re looking for a shorter time frame, it’s also worth looking at its 3-year annualized total return of 10.96%, which puts it in the middle third over that time frame.
When looking at the performance of a fund, it is also important to note the standard deviation of returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of DODWX over the past three years is 24.06% compared to the category average of 18.44%. The fund’s standard deviation over the past 5 years is 19.37% compared to the category average of 15.07%. This makes the fund more volatile than its peers over the past half decade.
Investors should note that the fund has a 5-year beta of 1.16, so it will likely be more volatile than the market as a whole. Another factor to consider is alpha, as it reflects the performance of a portfolio on a risk-adjusted basis relative to a benchmark – in this case the S&P 500. The fund produced negative alpha. over the past 5 years of -5.36, which shows that the managers of this portfolio are struggling to choose stocks that generate higher returns than the benchmark.
Costs are increasingly important for mutual funds, especially as competition intensifies in this market. And all other things being equal, a less expensive product will outperform its otherwise identical counterpart, so it’s essential for investors to take a closer look at these metrics. In terms of fees, DODWX is a no load fund. It has an expense ratio of 0.62% compared to the category average of 1.14%. From a cost perspective, DODWX is actually less expensive than its peers.
Investors should be aware that with this product, the minimum initial investment is $ 2,500; each subsequent investment must be at least $ 100.
At the end of the line
Overall, Dodge & Cox Global Stock Fund (DODWX) ranks high as a Zacks mutual fund, and in conjunction with its comparatively similar performance, medium downside risk, and lower fees, this fund appears to be a good potential choice for investors at the moment.
For more information on the Global – Equity area of the mutual fund world, visit www.zacks.com/funds/mutual-funds. There you can learn more about the ranking process and dive even deeper into DODWX for additional information. If you’re more of an equity investor, be sure to also check out our Zacks Rankings and our full suite of tools we have available for both novice and professional investors.
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