DODFX
Dodge & Cox International Stock-I
Introduction to Dodge & Cox International Stock-I
Dodge & Cox International Stock-I (DODFX) is a mutual fund designed to provide long-term growth of principal and income by investing primarily in a diversified portfolio of equity securities issued by non-U.S. companies. The fund’s strategy includes exposure to at least three different foreign countries, including emerging markets, which offers investors a broad spectrum of international opportunities. As a Foreign-Large Value fund, DODFX focuses on identifying undervalued stocks with strong potential for appreciation, making it an attractive option for value-oriented investors seeking international diversification.
At A Glance
Executive Summary
DODFX offers diversified foreign equity exposure with a competitive 0.62% expense ratio, focusing on value stocks across multiple countries.
Diversified international exposure Competitive expense ratio Focus on value stocks
Higher risk metrics Underperformance against benchmark Limited U.S. equity exposure
Performance Analysis: A Mixed Bag
The performance of DODFX over the past year has been somewhat mixed. With a one-year return of 16.19%, the fund has underperformed its benchmark, the MSCI ACWI xUS DivAdj Index, which posted a 17.25% return. Over longer periods, the fund’s annualized returns are 4.38% over three years, 6.69% over five years, and 4.45% over ten years, with an inception return of 6.87%. These figures suggest that while the fund has delivered steady returns, it has struggled to consistently outperform its benchmark, particularly in recent years. Investors should weigh these performance metrics against their own risk tolerance and investment goals.
Portfolio Composition: A Diverse International Mix
DODFX boasts a well-diversified portfolio, with significant allocations in various sectors and regions. The fund’s top holdings include major international companies such as Sanofi SA, Johnson Controls International PLC, and Novartis AG. Sector-wise, the fund is heavily weighted towards Financials (23.04%), Health Care (15.89%), and Industrials (11.06%), providing a balanced exposure to different economic sectors. The fund’s asset allocation is predominantly in non-U.S. equities (89.90%), with a small portion in U.S. equities (9.15%) and cash (0.96%). This diverse mix is designed to capture growth opportunities across global markets while mitigating risks associated with any single region or sector.
Risk Metrics: Understanding the Volatility
Investors considering DODFX should be aware of its risk profile. The fund has a beta of 1.03, indicating slightly higher volatility compared to the market. Its alpha is -1.08%, suggesting that the fund has underperformed its benchmark on a risk-adjusted basis. The Sharpe Ratio of -0.09 and Treynor Ratio of -1.05 further highlight the fund’s challenges in delivering risk-adjusted returns. Additionally, the fund’s standard deviation is 3.55%, and it has a downside risk (UI) of 2.72%. These metrics indicate that while the fund offers potential for growth, it also carries a higher level of risk, which investors should consider in the context of their overall portfolio strategy.
Expense Ratio: Competitive in Its Class
One of the standout features of DODFX is its competitive expense ratio of 0.62%. This is relatively low compared to many other funds in the Foreign-Large Value category, making it an attractive option for cost-conscious investors. Lower expenses can significantly enhance net returns over time, especially in a fund that focuses on long-term growth. By keeping costs down, DODFX allows investors to retain more of their investment gains, which is particularly important in a fund that may experience periods of underperformance relative to its benchmark.
Comparative Analysis: How DODFX Stacks Up
When compared to similar funds, DODFX presents a unique value proposition. While it has a lower one-year return than some peers like BNY Mellon Global Stock-Y (22.51%) and Nationwide Global Sustainable Equity-S (21.29%), its expense ratio is more competitive. The fund’s focus on value stocks and its diversified international exposure set it apart from growth-oriented funds. However, investors should consider the fund’s higher risk metrics and its performance relative to peers when making investment decisions. The choice between DODFX and its competitors will largely depend on individual investment goals and risk tolerance.
Investor Suitability: Who Should Consider DODFX?
DODFX is best suited for investors seeking international diversification with a focus on value stocks. Its diversified portfolio across multiple sectors and regions makes it an ideal choice for those looking to mitigate domestic market risks while capitalizing on global growth opportunities. The fund’s competitive expense ratio further enhances its appeal to cost-conscious investors. However, given its higher risk metrics and recent underperformance relative to its benchmark, DODFX may not be suitable for conservative investors or those with a low risk tolerance. Potential investors should carefully assess their investment objectives and risk appetite before committing to this fund.
Conclusion: A Balanced Approach to International Investing
In conclusion, Dodge & Cox International Stock-I offers a balanced approach to international investing, with a focus on value stocks and diversified exposure across global markets. While the fund has faced challenges in outperforming its benchmark, its competitive expense ratio and diversified portfolio make it a compelling option for value-focused investors seeking international exposure. However, the fund’s higher risk profile and recent performance should be carefully considered. Overall, DODFX stands out as a viable option for investors looking to diversify their portfolios with international equities, provided they are comfortable with the associated risks.
Similar Securities
DODFX: Dodge & Cox International Stock-I | Diversified Foreign Equity Investment
DODFX offers diversified foreign equity exposure with a competitive 0.62% expense ratio, focusing on value stocks across multiple countries.
HDAVX: Janus Henderson Responsible Int'l Div-A | High Yield Global Value Fund
HDAVX offers a 2.07% yield with a focus on global value stocks, outperforming its benchmark with a 19.49% 1-year return.
MEURX: Franklin Mutual European-Z | European Value Investment
MEURX offers European value exposure with a 0.95% expense ratio and 2.48% yield, focusing on capital appreciation and income.
HFQAX: Janus Henderson Global Equity Income-A | High Income & Growth
HFQAX offers a high 7.83% yield with a focus on income-producing equities, suitable for value investors seeking global exposure.
PNGAX: Putnam International Value-A | Foreign Value Investment
Putnam International Value-A (PNGAX) offers a 2.19% yield with a focus on foreign large value stocks, providing growth and income potential.
Futher Reading
https://finance.yahoo.com/quote/DODFX/”>Yahoo: Dodge & Cox International Stock-I
https://ftcloud.fasttrack.net/web/chart/DODFX
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