Are there any mutual funds that utilize the Dogs of the Dow approach?
You will not find a fund that invests 100% of their assets in the Dogs of the Dow since SEC rules dictate that no mutual fund can invest more than 5% of its portfolio in any one stock. As for funds that invest a portion of their assets in the Dogs… The Hennessy Balanced Fund puts half of its assets into the Dogs of the Dow and half into Treasury Bills. The Payden & Rygel Growth and Income Fund invests half of its assets in the Dogs and half in the stocks which make up the S&P 500 index. The Dogs of the Market Fund places half of its assets in the Dogs and the other half in other high yielding stocks. Keep an eye on the fees since they can get well above 1% (per year) of your investment. We believe that fees for index type mutual funds should be well below 0.5% and in fact should be comparable to other index funds with fees around 0.2% (per year). One final note, you should also consider the opportunity costs of these “hybrid” funds. Fifty percent of the portfolio may be placed in inv
