Why Dodge & Cox International Stock Is a Steadfast Fund

Key Morningstar Metrics for Dodge & Cox International Stock

• Morningstar Medalist Rating
  : Gold
• Process Pillar
  : High
• People Pillar
  : High
• Parent Pillar
  : High

Dodge & Cox International Stock’s DODFX returns might be relatively volatile, but its fundamentals—its team and approach—are strong and steady.

The fund joined in an impressive rally for international-stock offerings in 2025 and has had a bumpy start to 2026, but investors here need to stay focused on the long term. That’s precisely what these managers do. Together with Dodge & Cox’s talented global industry analysts, a committee of six veteran managers insistently seeks cheap stocks for this portfolio. Such opportunities often come to them with bumps and bruises. But extensive research and vetting give the team confidence to invest and wait for the payoff. They’re also willing to add on further weakness (only after careful reassessments) and let out the leash for winners whose prospects remain promising. That ethos pervades every Dodge & Cox fund, and their fine track records show that it works.

The use of investment committees is also reassuring. Dodge & Cox has produced its share of capable investors, but the committee structure helps ensure diversity of perspective and continuity amid change. The international-equity committee includes important firm leaders such as president and CEO Roger Kuo and chief investment officer David Hoeft. Having risen through the global industry analyst ranks, they’re actively shaping this portfolio with four other experienced colleagues. Managers matter, and sometimes stars are worth chasing, but here, fundholders are placing their trust in a collective that transcends any one member’s influence.

Other features add to the fund’s appeal. Its forays into emerging markets often come with increased risk but offer significant growth potential. Many portfolio traits are long-lasting but rarely dogmatic; in 2025 and early 2026, for instance, the team trimmed long-held positions in European banks in favor of new insurance-related buys.

Investors here get access to this team’s expertise and judgment for a reasonable fee. So, however volatile its returns, rest easy with this fund’s sturdy team and consistent approach.

Dodge & Cox International Stock: Performance Highlights

The best way to benefit from this fund is to be patient. From longest-tenured manager Kuo’s May 2006 start through May 2026, the fund’s I share class gained 6.2% annualized. That outpaced 85.0% of its foreign large-value Morningstar Category peers and beat the MSCI ACWI ex USA Value category benchmark’s 5.3% gain. The managers’ contrarian investment style, however, often makes the fund’s returns among the category’s most volatile, as some of its holdings address challenges and look to rebound.

Like many international-equity funds, this offering had a stellar 2025 in absolute terms. It gained ground during much of the year and finished up 38.7%, roughly in line with category peers and just slightly behind the category index. It was the biggest calendar-year jump since 2009. A long-standing wager on European banks such as Santander SAN and BNP Paribas BNP finally paid off. The fund also benefited from its siblings. It picked up Taiwan Semiconductor 2330:TW in 2023 after it first appeared in Dodge & Cox Emerging Markets Stock’s DODEX portfolio; the stock gained nearly 46% in 2025 and continued its strong run (fueled by artificial intelligence-related demand for its chips) into early 2026. The managers also showed their contrarianism. In 2026’s first quarter, they added significantly to their stake in a major 2025 detractor, Korean e-commerce firm Coupang CPNG, after news of a data breach had spooked some investors in late 2025 and made its shares look enticing.