Having trouble finding a Large Cap Value fund? Dodge & Cox Stock Fund (DODGX) is a potential starting point. DODGX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
DODGX is classified in the Large Cap Value segment by Zacks, which is an area full of possibilities. Investors interested in a stable income stream find these mutual funds very appealing because they have a unique investing strategy. Large Cap Value funds invest in stocks with a market capitalization of $10 billion or more, but whose share prices do not reflect their intrinsic value. This tactic often leads to low P/E ratios and high dividend yields; however, these funds’ high growth opportunities are often slowed, as large-cap securities are generally in stable industries with low to moderate growth prospects.
DODGX is a part of the Dodge & Cox family of funds, a company based out of Kansas City, MO. Dodge & Cox Stock Fund debuted in December of 1964. Since then, DODGX has accumulated assets of about $65.87 million, according to the most recently available information. A team of investment professionals is the fund’s current manager.
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 16.51%, and it sits in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 12.54%, which places it in the top third during this time-frame.
It is important to note that the product’s returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund’s [%] sale charge. If sales charges were included, total returns would have been lower.
When looking at a fund’s performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of DODGX over the past three years is 15.86% compared to the category average of 15.09%. Over the past 5 years, the standard deviation of the fund is 17.56% compared to the category average of 14.61%. 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 0.93, which means it is hypothetically less volatile than the market at large. Because alpha represents a portfolio’s performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. The fund has produced a positive alpha over the past 5 years of 1.71, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
