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3 Hottest-Selling Funds

Should you join the crowd or run away?

3 Hottest Selling Funds

Russel Kinnel: Today I’m going to look at the three hottest-selling actively managed funds. Hot money often finds hot garbage. See dogecoin and Bed Bath and Beyond for reference. So, be very careful when you consider buying the thing that everyone else is buying. But sometimes top-selling funds are not all that trendy. And in fact, this year, they are three pretty good funds.

3 Hottest-Selling Funds

  1. JPMorgan Large Cap Growth OLGAX
  2. PIMCO Income PONAX
  3. Dodge & Cox Income DODIX

JPMorgan Large Cap Growth OLGAX has taken in a stunning $18 billion this year. The reason is its five- and 10-year returns are stellar. Growth stocks have bounced back from last year’s correction as AI has gotten investors excited once again. The good news is that this is actually a pretty well-run fund that we rate Bronze. Manager Giri Devulapally has built a strong record, blending fundamental research with momentum. I’ll be curious to see if the fund’s sudden asset growth will make it more difficult for the fund to track momentum stocks going forward.

Next is Pimco Income PONAX, which has taken in $13 billion. It’s one of the best bond funds around, but it is pretty aggressive. Dan Ivascyn and Alfred Murata leave no stone unturned in their quest for income. They invest in nonagency mortgages, foreign bonds, high-yield, and other sectors. We rate the fund Silver, reflecting the strength of management and the broader firm in general. The fund is up to $127 billion in assets total, so asset bloat is definitely going to present a challenge going forward.

Finally, we have Dodge & Cox Income DODIX, which has taken in $6 billion. Dodge & Cox is a long-term-focused fund that avoids trendy strategies, so it’s funny to see them drawing so much money. The fund leverages the firm’s expertise in company research to build a portfolio of investment-grade corporate bonds, mortgages, and government debt. Fees are low, and we rate the fund High on all pillars and Gold overall.

I don’t own any of these funds, but I do own other funds from Pimco and Dodge & Cox.

Watch “3 Funds Whose Tax Bills Might Tick Up” for more from Russel Kinnel.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.

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About the Author

Russel Kinnel

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Russel Kinnel is director of ratings, manager research, for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. He heads the North American Medalist Rating Committee, which vets the Morningstar Medalist Rating™ for funds. He is the editor of Morningstar FundInvestor, a monthly newsletter, and has published a number of prominent studies of the fund industry covering subjects such as manager investment, expenses, and investor returns.

Since joining Morningstar in 1994, Kinnel has analyzed virtually every type of fund and has covered the most prominent fund families, including Fidelity, T. Rowe Price, and Vanguard. He has led studies on the predictive power of fund data and helped develop the Morningstar Rating for funds and the Morningstar Style Box methodology. He was co-author of the company's first book, Morningstar Guide to Mutual Funds: 5-Star Strategies for Success (Wiley, 2003), and was author of the book Fund Spy: Morningstar's Inside Secrets to Selecting Mutual Funds That Outperform, published in 2009.

Kinnel holds a bachelor's degree in economics and journalism from the University of Wisconsin.

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