Last Friday Dodge & Cox filed with the SEC to launch a new global stock fund - their first new fund since 2001 when they launched Dodge & Cox International Stock (DODFX).

When investors are able to buy Dodge & Cox Global Stock in about three months, the fund will be more expensive than other Dodge & Cox funds, with a 0.60% management fee and total expenses capped at 0.90%. Currently the other Dodge & Cox funds are in the 0.44% - 0.65% total expense ratio range. We expect the total expense ratio of this new fund to reach around 0.80% in the next couple of years, and ultimately settle at roughly 0.65% once assets take off (which might take a little longer now that the market is weak and other Dodge & Cox funds have reopened). These extra fees in the near term will more than likely be offset by increased performance (relative to other Dodge & Cox funds) due to the benefits of a much smaller asset level (you will notice a low fat fund index on this fund's data page during its formative years). But should you buy?

All of our Powerfund Portfolios outperformed the major stock indexes in January – except Daredevil, down just a bit more than the Dow’s 4.5% drop. While our relative performance was good, most of our portfolios, save Safety, were still off significantly. We expect to clock another year beating the S&P 500 by increasing our stock fund allocations as the market continues to weaken.