Dodge & Cox Worldwide US Stock vs Passive Funds

How does a Gold Rated actively managed US equity fund fare against a low cost ETF or tracker fund? We reveal how Dodge & Cox performs against a passive strategy

Karen Kwok 5 May, 2017 | 3:27PM

The US stock market has reached new peaks in the first quarter of the year. Market optimism has been driven by President Donald Trump’s business-friendly policy proposals – the so-called Trumpflation trade. The NASDAQ tech index breached 6,000 for the first time in April, while the Dow Jones retook the 21,000 level it originally claimed in March.

Investors in passive funds have benefited directly from the rally. Both index-trackers and exchange-traded funds typically aim to replicate the performance of a given benchmark.

“The first S&P 500 fund, Vanguard 500 Index, was launched 40 years ago. Few actively managed US large-cap stock funds that were around in 1976 are still in existence today. Fewer still managed to produce better returns than Vanguard 500 Index over the past four decades,” said Ben Johnson, director of passive strategies global manager research with Morningstar.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Dodge & Cox Worldwide US Stock A EUR21.93 EUR-5.04
iShares Russell 1000 ETF  
Vanguard US Equity Index Acc426.60 GBP-0.72

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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