Vanguard low expense vs Dodge Cox

[smmsmm57]

I am 66 and have held about 30% of my portfolio in the Vanguard Total International Stock Index Fund ETF (VXUS) ER (.07%) for many years. Lately I have been reading about the Dodge Cox (DODFX) Dodge & Cox International Stock Fund Class and for every span of time (YTD, 1 year, 5 year, etc) it has a significantly better return than the Vanguard one. It would seem obvious to me that I should switch completely but if the answer is that obvious there are good reasons not to do so? I cannot find out why. Any input greatly appreciated. Thank you.

[exodusNH]

I am 66 and have held about 30% of my portfolio in the Vanguard Total International Stock Index Fund ETF (VXUS) ER (.07%) for many years. Lately I have been reading about the Dodge Cox (DODFX) Dodge & Cox International Stock Fund Class and for every span of time (YTD, 1 year, 5 year, etc) it has a significantly better return than the Vanguard one. It would seem obvious to me that I should switch completely but if the answer is that obvious there are good reasons not to do so? I cannot find out why. Any input greatly appreciated. Thank you.

The Dodge fund is only 70 companies. Maybe they will continue to pick the winners.

VXUS has over 7000 companies.

[bertilak]

I am 66 and have held about 30% of my portfolio in the Vanguard Total International Stock Index Fund ETF (VXUS) ER (.07%) for many years. Lately I have been reading about the Dodge Cox (DODFX) Dodge & Cox International Stock Fund Class and for every span of time (YTD, 1 year, 5 year, etc) it has a significantly better return than the Vanguard one. It would seem obvious to me that I should switch completely but if the answer is that obvious there are good reasons not to do so? I cannot find out why. Any input greatly appreciated. Thank you.

The Dodge fund is only 70 companies. Maybe they will continue to pick the winners.

VXUS has over 7000 companies.

And maybe the winners they pick are riskier. That will work well -- until it doesn't.
Risk does come back to bite you. That's why it is called risk.

[exodusNH]

I am 66 and have held about 30% of my portfolio in the Vanguard Total International Stock Index Fund ETF (VXUS) ER (.07%) for many years. Lately I have been reading about the Dodge Cox (DODFX) Dodge & Cox International Stock Fund Class and for every span of time (YTD, 1 year, 5 year, etc) it has a significantly better return than the Vanguard one. It would seem obvious to me that I should switch completely but if the answer is that obvious there are good reasons not to do so? I cannot find out why. Any input greatly appreciated. Thank you.

The Dodge fund is only 70 companies. Maybe they will continue to pick the winners.

VXUS has over 7000 companies.

And maybe the winners they pick are riskier. That will work well -- until it doesn't.
Risk does come back to bite you. That's why it is called risk.

The Sharpe ratio is actually slightly better than VXUS, so you were compensated for the risk.

However, it's a very concentrated position - 70 companies vs 7700 or so that Vanguard has deemed investable.

[Tdubs]

I am 66 and have held about 30% of my portfolio in the Vanguard Total International Stock Index Fund ETF (VXUS) ER (.07%) for many years. Lately I have been reading about the Dodge Cox (DODFX) Dodge & Cox International Stock Fund Class and for every span of time (YTD, 1 year, 5 year, etc) it has a significantly better return than the Vanguard one. It would seem obvious to me that I should switch completely but if the answer is that obvious there are good reasons not to do so? I cannot find out why. Any input greatly appreciated. Thank you.

The Dodge fund is only 70 companies. Maybe they will continue to pick the winners.

VXUS has over 7000 companies.

Any particular tilt to those 70?

[the_wiki]

I am 66 and have held about 30% of my portfolio in the Vanguard Total International Stock Index Fund ETF (VXUS) ER (.07%) for many years. Lately I have been reading about the Dodge Cox (DODFX) Dodge & Cox International Stock Fund Class and for every span of time (YTD, 1 year, 5 year, etc) it has a significantly better return than the Vanguard one. It would seem obvious to me that I should switch completely but if the answer is that obvious there are good reasons not to do so? I cannot find out why. Any input greatly appreciated. Thank you.

The Dodge fund is only 70 companies. Maybe they will continue to pick the winners.

VXUS has over 7000 companies.

I don't see how having 70 companies is a problem. Many papers have been published showing full diversification can be achieved in as little as 20 stocks.

[exodusNH]

I am 66 and have held about 30% of my portfolio in the Vanguard Total International Stock Index Fund ETF (VXUS) ER (.07%) for many years. Lately I have been reading about the Dodge Cox (DODFX) Dodge & Cox International Stock Fund Class and for every span of time (YTD, 1 year, 5 year, etc) it has a significantly better return than the Vanguard one. It would seem obvious to me that I should switch completely but if the answer is that obvious there are good reasons not to do so? I cannot find out why. Any input greatly appreciated. Thank you.

The Dodge fund is only 70 companies. Maybe they will continue to pick the winners.

VXUS has over 7000 companies.

Any particular tilt to those 70?

They look on the larger side. Their benchmark (not index), which was a median $9B market cap. Their median is $38B.

Vanguard international grown has actually done better.

I stick with VXUS and the Fidelity equivalent in my 401k.

[student]

You should probably comparing Dodge and Cox to one of Vanguard's active international funds. https://investor.vanguard.com/investmen ... nal,equity

[bendix]

Their flagship, which is DODGX, hasnt beaten the market over a longer period of time. Not sure why their international fund should be lucky enough on a continuous basis.

[sunnywindy]

The first thing I would figure out is what is the capital gains situation. Do you have enough time and confidence that you will recoup the taxes paid for selling Vanguard in future DODFX returns? If yes, even though you saw that all the time periods are in DODFX's favor, this fund will not always have that performance characteristic. Do you have the fortitude to stay the course? Finally, although there is a good chance that DODFX will continue to outperform the ex-US markets, there will be other funds that will have better performance than DODFX. Will you jump ship for those when it seems like you could make more money?

Personally, I think DODFX is an excellent choice. And, I do agree that there is a decent probability that it will have higher returns than the Vanguard market cap equivalent over a full market cycle. But, this seems to be a classic case of performance chasing. If you said that DODFX had a terrible few years but has a great internal process, would it be a great time to buy? I would say yes. But, they have had a decent few years and are likely to have a bad year sometime time the (near?) future; that is when you want to buy (during/just after the bad year). See yearly returns: https://www.morningstar.com/funds/xnas/ ... erformance

[the_wiki]

Their flagship, which is DODGX, hasnt beaten the market over a longer period of time. Not sure why their international fund should be lucky enough on a continuous basis.

It most definitely HAS beaten the market over long periods of time.

https://www.portfoliovisualizer.com/bac ... ion2_2=100

Here's almost 40 years with monthly contributions. About a million bucks more with DODGX.

[Northern Flicker]

I am 66 and have held about 30% of my portfolio in the Vanguard Total International Stock Index Fund ETF (VXUS) ER (.07%) for many years. Lately I have been reading about the Dodge Cox (DODFX) Dodge & Cox International Stock Fund Class and for every span of time (YTD, 1 year, 5 year, etc) it has a significantly better return than the Vanguard one. It would seem obvious to me that I should switch completely but if the answer is that obvious there are good reasons not to do so? I cannot find out why. Any input greatly appreciated. Thank you.

The Dodge fund is only 70 companies. Maybe they will continue to pick the winners.

VXUS has over 7000 companies.

I don't see how having 70 companies is a problem. Many papers have been published showing full diversification can be achieved in as little as 20 stocks.

Those results generally use volatility as the risk measure when assessing the impact of concentration risk. That is too short term. Idiosyncratic risk does not materialize frequently enough for to to show up in volatility measures. With sector diversification, 50 may be enough, but about 100 are needed to be sure.

DODFX is a good fund if what you want is fundamental active management. It is riskier than a total int'l index fund. It may be less tax-efficient.

[the_wiki]

What kind of idiosyncratic risk would affect 70 stocks across multiple countries and sectors but not affect the index?

[Northern Flicker]

What kind of idiosyncratic risk would affect 70 stocks across multiple countries and sectors but not affect the index?

Idiosyncratic risk is risk unique to individual companies. Examples span a broad range. Market indices diversify it away. The correct risk measure is the variance of terminal portfolio value over one's investment horizon.

[GerryL]

Their flagship, which is DODGX, hasnt beaten the market over a longer period of time. Not sure why their international fund should be lucky enough on a continuous basis.

It most definitely HAS beaten the market over long periods of time.

https://www.portfoliovisualizer.com/bac ... ion2_2=100

Here's almost 40 years with monthly contributions. About a million bucks more with DODGX.

For many years I had my IRA in DODGX, including through the 2008-2009 turmoil. I'd chosen it in the early 1990s for the relatively low ER at a time I knew little about investing and nothing about index funds. It did gangbusters. After 20+ years I had several times (7-8x?) more than I'd ever contributed. When I retired, I decided I wanted to consolidate my portfolio and -- with some regret and trepidation -- moved all into a Boglehead 4-fund portfolio with Vanguard. I opted for simplicity and lower ER. Have never bothered looking back to see "what if" I had left the $$ with D&C.

[the_wiki]

What kind of idiosyncratic risk would affect 70 stocks across multiple countries and sectors but not affect the index?

Idiosyncratic risk is risk unique to individual companies. Examples span a broad range. Market indices diversify it away. The correct risk measure is the variance of terminal portfolio value over one's investment horizon.

Well I guess I’m arguing 70 stocks can also easily diversify it away. Just look at Dow vs S&P 500 vs Total market. 30 vs 500 vs 4000 holdings.

[Northern Flicker]

The following used the correct risk measure and found that 50 stocks often are enough to diversify away idiosyncratic risk, but about 100 are needed in the worst case.

http://eprints.utas.edu.au/17313/1/2013 ... cation.pdf

In the case of DODFX, 3 large European banks are 10% of the portfolio.

[Valuethinker]

The following used the correct risk measure and found that 50 stocks often are enough to diversify away idiosyncratic risk, but about 100 are needed in the worst case.

http://eprints.utas.edu.au/17313/1/2013 ... cation.pdf

In the case of DODFX, 3 large European banks are 10% of the portfolio.

I gulped when I read that.

We can argue Credit Suisse was a one off - a structurally weak bank - which UBS got at a very cheap price. But the European economy is not generally in a good place -- although one could argue it's a lot better than one would have predicted if one had known about the Russian gas crisis. However German economy, the largest in Europe, is not growing at all. Of sectors, banks is one of those with the highest exposure to Europe. Not that I would want to own BMW or Daimler (Mercedes) either given the arrival of cheap Chinese EVs into the European market- -they face both market weakness in China (a major component of their sales), loss of all Russian sales and increased competition at home (Tesla, Chinese).

Depends which banks, I guess.

[Northern Flicker]

The three banks are UBS, Banco Santander, and BNP Paribas. Axis Bank of India is also in the top 10 with another 2.5%.

The financial sector is the heftiest sector in the fund at 27%, which is not alarming when it is used to diversify a US portfolio. DODFX is about 6% tech. The US total market is about 10% financial sector and 30% tech sector. Two stocks, Apple and Microsoft currently are about 12% of a US total market index fund.

DODFX has a high active share, reported as 87%. Many active funds are lower. An active fund with a 0.4% ER but active share of 43.5% would actually be more expensive than DODFX with an ER of .62% in the sense that a 50-50 mix of DODFX and a total market index fund would have the same active share, but a lower aggregate ER than the hypothetical fund with an ER of .4%.

Holding a mix of DODFX and a total int'l or developed markets index fund can add an active share without taking concentration risk. It is how I would hold DODFX if using it.

Another point is that I would prefer not to hold actively managed funds in a taxable account. I would only hold DODFX in a tax-qualified account.

[Flashes1]

I think I have about $55k in DODFX via an IRA, but I've been locked out of it for 10 years and am too lazy to retrieve the PW. International funds have done so crappy that I don't really care about return. I wish it was in TSM Index so I might shock myself with how much it's grown in the last 10 years....I don't think International has increased very much in the last 10 years

[arcticpineapplecorp.]

I am 66 and have held about 30% of my portfolio in the Vanguard Total International Stock Index Fund ETF (VXUS) ER (.07%) for many years. Lately I have been reading about the Dodge Cox (DODFX) Dodge & Cox International Stock Fund Class and for every span of time (YTD, 1 year, 5 year, etc) it has a significantly better return than the Vanguard one. It would seem obvious to me that I should switch completely but if the answer is that obvious there are good reasons not to do so? I cannot find out why. Any input greatly appreciated. Thank you.

The Dodge fund is only 70 companies. Maybe they will continue to pick the winners.

VXUS has over 7000 companies.

I don't see how having 70 companies is a problem. Many papers have been published showing full diversification can be achieved in as little as 20 stocks.

have you not read The 15-Stock Diversification Myth by William Bernstein:

The reason is simple: a grossly disproportionate fraction of the total return came from a very few "superstocks" like Dell Computer, which increased in value over 550 times. If you didn’t have one of the half-dozen or so of these in your portfolio, then you badly lagged the market. (The odds of owing one of the 10 superstocks are approximately one in six.) Of course, by owning only 15 stocks you also increase your chances of becoming fabulously rich. But unfortunately, in investing, it is all too often true that the same things that maximize your chances of getting rich also maximize your chances of getting poor.

If the O’Neal data are generalizable to stocks, and I believe that they are, then even 100 stocks are not nearly enough to eliminate this very important source of financial risk.

So, yes, Virginia, you can eliminate nonsytematic portfolio risk, as defined by Modern Portfolio Theory, with a relatively few stocks. It’s just that nonsystematic risk is only a small part of the puzzle. Fifteen stocks is not enough. Thirty is not enough. Even 200 is not enough. The only way to truly minimize the risks of stock ownership is by owning the whole market.

[the_wiki]

I am 66 and have held about 30% of my portfolio in the Vanguard Total International Stock Index Fund ETF (VXUS) ER (.07%) for many years. Lately I have been reading about the Dodge Cox (DODFX) Dodge & Cox International Stock Fund Class and for every span of time (YTD, 1 year, 5 year, etc) it has a significantly better return than the Vanguard one. It would seem obvious to me that I should switch completely but if the answer is that obvious there are good reasons not to do so? I cannot find out why. Any input greatly appreciated. Thank you.

The Dodge fund is only 70 companies. Maybe they will continue to pick the winners.

VXUS has over 7000 companies.

I don't see how having 70 companies is a problem. Many papers have been published showing full diversification can be achieved in as little as 20 stocks.

have you not read The 15-Stock Diversification Myth by William Bernstein:

The reason is simple: a grossly disproportionate fraction of the total return came from a very few "superstocks" like Dell Computer, which increased in value over 550 times. If you didn’t have one of the half-dozen or so of these in your portfolio, then you badly lagged the market. (The odds of owing one of the 10 superstocks are approximately one in six.) Of course, by owning only 15 stocks you also increase your chances of becoming fabulously rich. But unfortunately, in investing, it is all too often true that the same things that maximize your chances of getting rich also maximize your chances of getting poor.

If the O’Neal data are generalizable to stocks, and I believe that they are, then even 100 stocks are not nearly enough to eliminate this very important source of financial risk.

So, yes, Virginia, you can eliminate nonsytematic portfolio risk, as defined by Modern Portfolio Theory, with a relatively few stocks. It’s just that nonsystematic risk is only a small part of the puzzle. Fifteen stocks is not enough. Thirty is not enough. Even 200 is not enough. The only way to truly minimize the risks of stock ownership is by owning the whole market.

I have read it, I just don't agree with it. By having thousands of stock holdings each breakout winner (which would start out small) is held at such a small ratio that it adds next to nothing to the returns. Just compare the returns of VTI vs VOO from 2011-2020. VTI held TSLA and VOO did not. That was a 1700% return for TSLA, turning it into a top 10 mega cap, and the difference between the two indexes is 0.05% avg per year.

I think we need to look no further than than the Dow 30 for proof that you don't need a lot of stocks to get reasonable diversification. As a more value leaning index, it has beat the returns of Vanguard and SPDR value indexes while holding more than 10x as many stocks, with no increase in risk and lower drawdowns.

[Northern Flicker]

The DOW has also seen idiosyncratic risk materialize at times, leading to underperformance during those periods.

[ruralavalon]

I am 66 and have held about 30% of my portfolio in the Vanguard Total International Stock Index Fund ETF (VXUS) ER (.07%) for many years. Lately I have been reading about the Dodge Cox (DODFX) Dodge & Cox International Stock Fund Class and for every span of time (YTD, 1 year, 5 year, etc) it has a significantly better return than the Vanguard one. It would seem obvious to me that I should switch completely but if the answer is that obvious there are good reasons not to do so? I cannot find out why. Any input greatly appreciated. Thank you.

Long-term Dodge & Cox International Stock I (DODFX) ER 0.62% has outperformed Vanguard Total International Stock Index with a higher Compound Annual Growth Rate (CAGR) and higher volatility, but a higher risk-adjusted return and a lower correlation to the U.S. stock market. The fund has a value tilt.

Portfolio Visualizer,2002-2023.

Their flagship, which is DODGX, hasnt beaten the market over a longer period of time. Not sure why their international fund should be lucky enough on a continuous basis.

Not true.

Long-term Dodge & Cox Stock I (DODGX) ER 0.51% has
significantly outperformed Vanguard Total Stock Market Index Fund with a higher Compound Annual Growth Rate (CAGR) a little higher volatility, but a much higher risk-adjusted return. The fund has a value tilt.

Portfolio Visualizer, 1993-2023.

. . . . . .

Dodge & Cox is an excellent fund company. Morningstar ranked the 150 largest U.S. fund companies. Dodge & Cox ranked first. "Dodge & Cox has indeed been impressive. The organization boasts several attributes. Its funds are cheap; its managers have long tenures and invest heavily in their own charges; and, unlike most competitors, Dodge & Cox has never launched a fund that it later liquidated. The firm’s backyard contains no skeletons."

Morningstar, (09/06/2019), "Be Thankful That You Don't Compete Against Vanguard", link. This article did a head-to-head comparison of Dodge & Cox funds to similar Vanguard funds, the Dodge & Cox funds won.

"After reading this column, Morningstar's Russ Kinnel informed me that Jack Bogle told him that Dodge & Cox was his favorite fund family. 'My God, they're boring,' said Bogle. You can't ask for a higher fund-family compliment than that."

[bendix]

I am 66 and have held about 30% of my portfolio in the Vanguard Total International Stock Index Fund ETF (VXUS) ER (.07%) for many years. Lately I have been reading about the Dodge Cox (DODFX) Dodge & Cox International Stock Fund Class and for every span of time (YTD, 1 year, 5 year, etc) it has a significantly better return than the Vanguard one. It would seem obvious to me that I should switch completely but if the answer is that obvious there are good reasons not to do so? I cannot find out why. Any input greatly appreciated. Thank you.

Long-term Dodge & Cox International Stock I (DODFX) ER 0.62% has outperformed Vanguard Total International Stock Index with a higher Compound Annual Growth Rate (CAGR) and higher volatility, but a higher risk-adjusted return and a lower correlation to the U.S. stock market. The fund has a value tilt.

Portfolio Visualizer,2002-2023.

Their flagship, which is DODGX, hasnt beaten the market over a longer period of time. Not sure why their international fund should be lucky enough on a continuous basis.

Not true.

Long-term Dodge & Cox Stock I (DODGX) ER 0.51% has
significantly outperformed Vanguard Total Stock Market Index Fund with a higher Compound Annual Growth Rate (CAGR) a little higher volatility, but a much higher risk-adjusted return. The fund has a value tilt.

Portfolio Visualizer, 1993-2023.

. . . . . .

Dodge & Cox is an excellent fund company. Morningstar ranked the 150 largest U.S. fund companies. Dodge & Cox ranked first. "Dodge & Cox has indeed been impressive. The organization boasts several attributes. Its funds are cheap; its managers have long tenures and invest heavily in their own charges; and, unlike most competitors, Dodge & Cox has never launched a fund that it later liquidated. The firm’s backyard contains no skeletons."

Morningstar, (09/06/2019), "Be Thankful That You Don't Compete Against Vanguard", link. This article did a head-to-head comparison of Dodge & Cox funds to similar Vanguard funds, the Dodge & Cox funds won.

"After reading this column, Morningstar's Russ Kinnel informed me that Jack Bogle told him that Dodge & Cox was his favorite fund family. 'My God, they're boring,' said Bogle. You can't ask for a higher fund-family compliment than that."

Even by their own website D&C doesnt claim to have beaten the SP500. Click on the link and then click "Performance".

https://www.dodgeandcox.com/individual- ... -fund.html

[ruralavalon]

I am 66 and have held about 30% of my portfolio in the Vanguard Total International Stock Index Fund ETF (VXUS) ER (.07%) for many years. Lately I have been reading about the Dodge Cox (DODFX) Dodge & Cox International Stock Fund Class and for every span of time (YTD, 1 year, 5 year, etc) it has a significantly better return than the Vanguard one. It would seem obvious to me that I should switch completely but if the answer is that obvious there are good reasons not to do so? I cannot find out why. Any input greatly appreciated. Thank you.

Long-term Dodge & Cox International Stock I (DODFX) ER 0.62% has outperformed Vanguard Total International Stock Index with a higher Compound Annual Growth Rate (CAGR) and higher volatility, but a higher risk-adjusted return and a lower correlation to the U.S. stock market. The fund has a value tilt.

Portfolio Visualizer,2002-2023.

Their flagship, which is DODGX, hasnt beaten the market over a longer period of time. Not sure why their international fund should be lucky enough on a continuous basis.

Not true.

Long-term Dodge & Cox Stock I (DODGX) ER 0.51% has
significantly outperformed Vanguard Total Stock Market Index Fund with a higher Compound Annual Growth Rate (CAGR) a little higher volatility, but a much higher risk-adjusted return. The fund has a value tilt.

Portfolio Visualizer, 1993-2023.

. . . . . .

Dodge & Cox is an excellent fund company. Morningstar ranked the 150 largest U.S. fund companies. Dodge & Cox ranked first. "Dodge & Cox has indeed been impressive. The organization boasts several attributes. Its funds are cheap; its managers have long tenures and invest heavily in their own charges; and, unlike most competitors, Dodge & Cox has never launched a fund that it later liquidated. The firm’s backyard contains no skeletons."

Morningstar, (09/06/2019), "Be Thankful That You Don't Compete Against Vanguard", link. This article did a head-to-head comparison of Dodge & Cox funds to similar Vanguard funds, the Dodge & Cox funds won.

"After reading this column, Morningstar's Russ Kinnel informed me that Jack Bogle told him that Dodge & Cox was his favorite fund family. 'My God, they're boring,' said Bogle. You can't ask for a higher fund-family compliment than that."

Even by their own website D&C doesnt claim to have beaten the SP500. Click on the link and then click "Performance".

https://www.dodgeandcox.com/individual- ... -fund.html

When you compare total returns of actual mutual funds with dividends reinvested, rather than compare to indexes, Dodge &Cox Stock Fund (DODGX) has outperformed both Vanguard Total Stock Market Index Fund and Vanguard 500 Index Fund.

Portfolio Visualizer, 1993-2023

With Portfolio Visualizer "The results are based on the total return of assets and assume that all received dividends and distributions are reinvested."

[GaryA505]

I am 66 and have held about 30% of my portfolio in the Vanguard Total International Stock Index Fund ETF (VXUS) ER (.07%) for many years. Lately I have been reading about the Dodge Cox (DODFX) Dodge & Cox International Stock Fund Class and for every span of time (YTD, 1 year, 5 year, etc) it has a significantly better return than the Vanguard one. It would seem obvious to me that I should switch completely but if the answer is that obvious there are good reasons not to do so? I cannot find out why. Any input greatly appreciated. Thank you.

Long-term Dodge & Cox International Stock I (DODFX) ER 0.62% has outperformed Vanguard Total International Stock Index with a higher Compound Annual Growth Rate (CAGR) and higher volatility, but a higher risk-adjusted return and a lower correlation to the U.S. stock market. The fund has a value tilt.

Portfolio Visualizer,2002-2023.

Their flagship, which is DODGX, hasnt beaten the market over a longer period of time. Not sure why their international fund should be lucky enough on a continuous basis.

Not true.

Long-term Dodge & Cox Stock I (DODGX) ER 0.51% has
significantly outperformed Vanguard Total Stock Market Index Fund with a higher Compound Annual Growth Rate (CAGR) a little higher volatility, but a much higher risk-adjusted return. The fund has a value tilt.

Portfolio Visualizer, 1993-2023.

. . . . . .

Dodge & Cox is an excellent fund company. Morningstar ranked the 150 largest U.S. fund companies. Dodge & Cox ranked first. "Dodge & Cox has indeed been impressive. The organization boasts several attributes. Its funds are cheap; its managers have long tenures and invest heavily in their own charges; and, unlike most competitors, Dodge & Cox has never launched a fund that it later liquidated. The firm’s backyard contains no skeletons."

Morningstar, (09/06/2019), "Be Thankful That You Don't Compete Against Vanguard", link. This article did a head-to-head comparison of Dodge & Cox funds to similar Vanguard funds, the Dodge & Cox funds won.

"After reading this column, Morningstar's Russ Kinnel informed me that Jack Bogle told him that Dodge & Cox was his favorite fund family. 'My God, they're boring,' said Bogle. You can't ask for a higher fund-family compliment than that."

Even by their own website D&C doesnt claim to have beaten the SP500. Click on the link and then click "Performance".

https://www.dodgeandcox.com/individual- ... -fund.html

When you compare total returns of actual mutual funds with dividends reinvested, rather than compare to indexes, Dodge &Cox Stock Fund (DODGX) has outperformed both Vanguard Total Stock Market Index Fund and Vanguard 500 Index Fund.

Portfolio Visualizer, 1993-2023

With Portfolio Visualizer "The results are based on the total return of assets and assume that all received dividends and distributions are reinvested."

It looks like they made some lucky bets in 1999-2000 that account for most of it's outperformance.

[GaryA505]

Just for fun, 60/40 DODGX/VBIIX vs VWELX:
https://www.portfoliovisualizer.com/bac ... ion3_2=100

[ruralavalon]

I am 66 and have held about 30% of my portfolio in the Vanguard Total International Stock Index Fund ETF (VXUS) ER (.07%) for many years. Lately I have been reading about the Dodge Cox (DODFX) Dodge & Cox International Stock Fund Class and for every span of time (YTD, 1 year, 5 year, etc) it has a significantly better return than the Vanguard one. It would seem obvious to me that I should switch completely but if the answer is that obvious there are good reasons not to do so? I cannot find out why. Any input greatly appreciated. Thank you.

Long-term Dodge & Cox International Stock I (DODFX) ER 0.62% has outperformed Vanguard Total International Stock Index with a higher Compound Annual Growth Rate (CAGR) and higher volatility, but a higher risk-adjusted return and a lower correlation to the U.S. stock market. The fund has a value tilt.

Portfolio Visualizer,2002-2023.

Their flagship, which is DODGX, hasnt beaten the market over a longer period of time. Not sure why their international fund should be lucky enough on a continuous basis.

Not true.

Long-term Dodge & Cox Stock I (DODGX) ER 0.51% has
significantly outperformed Vanguard Total Stock Market Index Fund with a higher Compound Annual Growth Rate (CAGR) a little higher volatility, but a much higher risk-adjusted return. The fund has a value tilt.

Portfolio Visualizer, 1993-2023.

. . . . . .

Dodge & Cox is an excellent fund company. Morningstar ranked the 150 largest U.S. fund companies. Dodge & Cox ranked first. "Dodge & Cox has indeed been impressive. The organization boasts several attributes. Its funds are cheap; its managers have long tenures and invest heavily in their own charges; and, unlike most competitors, Dodge & Cox has never launched a fund that it later liquidated. The firm’s backyard contains no skeletons."

Morningstar, (09/06/2019), "Be Thankful That You Don't Compete Against Vanguard", link. This article did a head-to-head comparison of Dodge & Cox funds to similar Vanguard funds, the Dodge & Cox funds won.

"After reading this column, Morningstar's Russ Kinnel informed me that Jack Bogle told him that Dodge & Cox was his favorite fund family. 'My God, they're boring,' said Bogle. You can't ask for a higher fund-family compliment than that."

Even by their own website D&C doesnt claim to have beaten the SP500. Click on the link and then click "Performance".

https://www.dodgeandcox.com/individual- ... -fund.html

When you compare total returns of actual mutual funds with dividends reinvested, rather than compare to indexes, Dodge &Cox Stock Fund (DODGX) has outperformed both Vanguard Total Stock Market Index Fund and Vanguard 500 Index Fund.

Portfolio Visualizer, 1993-2023

With Portfolio Visualizer "The results are based on the total return of assets and assume that all received dividends and distributions are reinvested."

It looks like they made some lucky bets in 1999-2000 that account for most of it's outperformance.

So let's leave out the years 1999-2000. From 2001 to date total return of Dodge &Cox Stock Fund (DODGX) still significantly outperformed both Vanguard Total Stock Market Index Fund and Vanguard 500 Index Fund.

Portfolio Visualizer, 2001-2023

[jeffyscott]

Just for fun, 60/40 DODGX/VBIIX vs VWELX:
https://www.portfoliovisualizer.com/bac ... ion3_2=100

Wellington target is really 65/35 and is mostly usi g corporate bonds, unlike the bond index. Additionally, why not pair dodge and cox's own bond fund with their stock fund?

Here's results with those changes plus dodge and cox balanced as third option:
https://www.portfoliovisualizer.com/bac ... ion4_3=100