3 Hottest-Selling Funds
Should you join the crowd or run away?
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
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.