My impression is that Dodge & Cox funds are usually not very tax efficient, but DODWX is a new fund, so should we expect it not to have much dividend or capital gains distributions in the first few years. Good to hold in a taxable account?

If I already have DODFX, is it a good idea to buy DODWX and replace (sell) DODFX, or keep both? (I don't have DODGX)
 

I think Dodge & Cox is an excellent firm, and usually keeps the turnover very low. So, I would expect any new fund they introduce will also have a low turnover, thus being tax efficient. If you want something even more tax efficient, use stock index funds like the VTSMX + VFWIX combo or the new single global stock index fund -- stay tuned for this one. I think that a new fund like DODWX will likely slowly build up its positions (probably will spend some time just building up cash), so will probably not have a lot of capital gains right off the bat. I would check out their web site for more info.

If DODFX has a lot of unrealized taxable capital gains, I would keep it, and just add new money to DODWX in the future (an excellent fund for taxable, IMO). You could also offset things by using DODGX. If not, I probably would bite the bullet, sell DODFX, pay the taxes (if small), and put it all in DODWX. Of course, a lot of the decisionmaking process also depends on your asset allocation, and how far out of whack any move would cause.

Dan

Actually, Dodge and Cox does run a strategy that tends to be tax efficient.  In recent years that does not seem to be the case because two of the funds closed and closed funds do not have asset growth to help with taxes.  In fact, redemptions often cause tax problems.  The new fund however should be more tax efficient for 2 reasons.  1) no built in cap gains  2) since the asset base is starting at $0, it will take far longer to close this fund.  If flows strengthen in the other two funds at some point they should close long before DODWX.