DODWX
Dodge & Cox Global Stock-I
Global Diversification with a Value Focus
Dodge & Cox Global Stock-I (DODWX) is a mutual fund that seeks long-term growth of principal and income by investing primarily in global equities. With a mandate to allocate at least 80% of its assets in common and preferred stocks, as well as securities convertible into common stocks, the fund offers a diversified approach to global investing. The fund’s focus on value stocks makes it particularly appealing to investors looking for undervalued opportunities across international markets. This strategy is reflected in its sector allocation, with significant investments in healthcare (23.51%) and financials (20.82%), sectors traditionally known for value opportunities. The fund’s global reach is further emphasized by its nearly equal allocation between U.S. (48.92%) and non-U.S. equities (48.68%), providing investors with a balanced exposure to international markets.
At A Glance
Executive Summary
DODWX offers global equity exposure with a 0.62% expense ratio and strong 1-year return of 21.41%, focusing on value stocks for long-term growth.
Global diversification with a focus on value stocks. Strong recent performance with a 21.41% 1-year return. Competitive expense ratio of 0.62%.
Higher volatility compared to some peers. Limited bond exposure may not suit conservative investors. Lower yield compared to some similar funds.
Impressive Recent Performance
DODWX has demonstrated impressive performance, particularly over the past year, with a 1-year return of 21.41%. This outpaces its benchmark, the MSCI ACWI xUS DivAdj Index, which returned 17.25% over the same period. The fund’s strong performance can be attributed to its strategic stock selection and sector allocation, which have capitalized on market trends and economic recovery post-pandemic. The fund’s alpha of 4.14% indicates its ability to generate returns above the benchmark, showcasing the effectiveness of its management strategy. Investors seeking a fund with a proven track record of outperforming its benchmark may find DODWX an attractive option.
Risk Metrics and Volatility Management
DODWX exhibits a beta of 0.92, indicating that it is slightly less volatile than the market. This is complemented by a Sharpe ratio of 0.37, suggesting that the fund offers a reasonable return for the level of risk taken. The fund’s downside risk, measured by a downside risk (UI) of 1.86, is relatively low, which may appeal to investors concerned about potential losses. Additionally, the fund’s max drawdown of -5.6% and quick recovery time highlight its resilience during market downturns. These risk metrics suggest that DODWX is well-managed in terms of balancing risk and return, making it suitable for investors with a moderate risk tolerance.
Sector and Market Cap Allocation
The sector allocation of DODWX is diverse, with significant investments in healthcare (23.51%), financials (20.82%), and communications (11.69%). This diversified sector exposure helps mitigate risks associated with any single industry. The fund’s market cap allocation is also noteworthy, with a focus on large (32.43%) and extra-large (36.32%) companies, which are generally more stable and less volatile than smaller companies. This allocation strategy aligns with the fund’s value-oriented approach, as larger companies often provide more consistent returns and dividends. Investors looking for a fund with a balanced approach to sector and market cap allocation may find DODWX appealing.
Competitive Expense Ratio and Yield
DODWX offers a competitive expense ratio of 0.62%, which is relatively low for a fund with global exposure. This low expense ratio allows investors to retain more of their returns, enhancing the fund’s appeal to cost-conscious investors. Additionally, the fund provides a yield of 1.46%, which, while modest, offers a steady income stream for investors. Compared to similar funds, DODWX’s expense ratio is competitive, making it an attractive option for investors seeking global diversification without incurring high costs. The combination of a low expense ratio and a reasonable yield makes DODWX a cost-effective choice for long-term investors.
Comparison with Similar Funds
When compared to similar funds, DODWX holds its ground with a strong 1-year return of 21.41%. For instance, while Impax Ellevate Global Women’s Leadership Fund (PXWIX) and Victory Global Managed Volatility Fund (UGOFX) have higher 1-year returns of 24.19% and 25.04% respectively, DODWX offers a more balanced risk profile with a beta of 0.92. Additionally, DODWX’s expense ratio of 0.62% is competitive, especially when compared to funds like BNY Mellon Global Stock-Y (DGLYX) and Columbia Global Value-Inst3 (CEVYX), which have higher expense ratios. This comparison highlights DODWX’s strength in providing a balanced approach to global investing with a focus on value.
Investor Suitability and Strategic Fit
DODWX is particularly suitable for investors seeking long-term growth through global equity exposure with a value focus. Its diversified portfolio, competitive expense ratio, and strong recent performance make it an attractive option for investors with a moderate risk tolerance. The fund’s strategic allocation to both U.S. and non-U.S. equities provides a balanced approach to international investing, appealing to those looking to diversify their portfolios beyond domestic markets. However, investors seeking higher yields or lower volatility may need to consider other options, as DODWX’s yield is modest and its volatility, while managed, is higher than some peers. Overall, DODWX is a strong candidate for investors prioritizing growth and value in their global investment strategy.
Conclusion: A Strong Contender in Global Value Investing
In conclusion, Dodge & Cox Global Stock-I (DODWX) stands out as a robust option for investors seeking global diversification with a value focus. Its impressive recent performance, competitive expense ratio, and strategic sector and market cap allocation make it a compelling choice for long-term growth investors. While it may not offer the highest yield or the lowest volatility, its balanced approach to risk and return, coupled with its global reach, positions it well for those looking to enhance their portfolios with international exposure. Investors who prioritize value investing and are comfortable with moderate risk will find DODWX a fitting addition to their investment strategy.
Similar Securities
BEGRX: Franklin Mutual Beacon-Z | Global Value Investment with Growth and Income
BEGRX offers global value equity exposure with a 0.77% expense ratio, strong 1-year return of 22.29%, and a focus on growth and income.
DODWX: Dodge & Cox Global Stock-I | Global Value Investment
DODWX offers global equity exposure with a 0.62% expense ratio and strong 1-year return of 21.41%, focusing on value stocks for long-term growth.
PRAFX: TRPrice Real Assets-Inv | Real Asset Growth Fund
PRAFX offers unique exposure to real assets with a focus on global value, featuring a 0.95% expense ratio and 1.43% yield.
BABDX: BlackRock Global Dividend-InvA | High Global Dividend Yields
BABDX offers high global dividend yields with a focus on large-cap equities, outperforming its benchmark with a 22.44% 1-year return.
MDISX: Franklin Mutual Global Discovery-Z | Global Value Investment
MDISX offers global value equity exposure with a 0.96% expense ratio and strong 1-year return of 17.36%, outperforming its benchmark.
Futher Reading
https://finance.yahoo.com/quote/DODWX/”>Yahoo: Dodge & Cox Global Stock-I
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