3 Great Funds for the New Year
Bargains abound, so get them while they’re not hot.
Russel Kinnel: I’ve been looking for attractive funds in asset classes that have room to run and are well-managed so that you’ll want to hold on to them even after they make up ground on the pack.
3 Great Funds for the New Year
Bonds have been beat up by rising interest rates and a spike in inflation. But now that inflation has fallen, the Federal Reserve may actually switch gears and start cutting rates. So, lots of parts of the bond market look attractive. One is mortgages, which have been hurt lately. I like Silver-rated Vanguard GNMA for its simple strategy and super low costs. The fund currently has a yield around 3.4%, which is decent for a low-risk strategy.
While stock investors lose their minds over AI, they’ve been neglecting the boring and steady companies of small value. That should set up small value for decent outperformance in the future. Janus Henderson Small Cap Value reopened to new investors in April 2023. I like to get in when a fund reopens because it tells me I’m going against the crowd. Managers Justin Tugman and Craig Kempler are seasoned managers who can take full advantage of a sale in good small caps. We rate the fund Silver.
Finally, foreign equities have also been neglected a bit, so I’ll re-up one of my favorite foreign value funds. Dodge & Cox International Stock is a fund I own in my 401(k), so that means I’m putting a little more in with every paycheck. The firm has just outstanding value investors with a deep team of managers and analysts who know their companies very well. The fund charges just 62 basis points, and long-term results are excellent, though it occasionally hits a bump in the road.
Watch “3 Hottest-Selling Funds” for more from Russel Kinnel.
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