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Old 12-15-2016, 03:43 PM
 
Location: RVA
2,165 posts, read 1,266,382 times
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Not perhaps, at all. Definitely. Could you stomach it when the stock market went down and it went up? That's what it does as part of a portfolio, always had. You picked the wrong mutual fund for an equity bull market, because...????
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Old 12-15-2016, 06:18 PM
 
Location: SoCal
13,226 posts, read 6,331,374 times
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Quote:
Originally Posted by Perryinva View Post
Not perhaps, at all. Definitely. Could you stomach it when the stock market went down and it went up? That's what it does as part of a portfolio, always had. You picked the wrong mutual fund for an equity bull market, because...????
I was just parking the money there. In the first half of 2016, Wellesley did better than Wellington. Then I realized, the kid is young, could stomach more stocks.
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Old 12-15-2016, 06:33 PM
 
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..........................YTD.....1yr.......3yrs.....5yrs.....10yrs.....15yr s
VWINX..............7.27....7.77......6.01.....7.55..... 6.56.......6.96............(a conservative allocation fund)
VTSMX..............13.09...14.62....9.96.....15.51...7. 10.......7.43............(index fund, 100% stocks of the 500 S&P stocks)
CA....................6.27.....7.31.....3.33......5. 90....4.00.......4.92............(avg of conservative allocation category funds)

As you can see from the above, VWINX does much better than the avg of its category (conservative allocation). It has lower returns than the pure stock index fund (VTSMX). In return for lower returns, the investor has less volatility, a slightly higher dividend (2.84% vs 1.73% based on current share price), and a fund that holds up much better in a crash (less loss in a recession, and the dividend still keeps coming; with dividend reinvestment, the investor continues to buy into the fund at the new lower price).

Morningstar rates VWINX a GOLD because of its performance (it performs in the top 5 of the 100 funds in the category of "30-50% equity," coupled with its LOW RISK rating. It is not interest rate immune, but the returns stated above reflect returns after many interest rate raises; it still turned in stellar returns for its category. The equities it invests in are above-avg dividend payers.

It's a fine fund, if someone wants something in that category.
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Old 12-15-2016, 06:50 PM
 
Location: SoCal
13,226 posts, read 6,331,374 times
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I'm unable to find information about VWINX when rate rises. We have a the lowest interest rate in the last 15 or even 20 years or maybe 30 years.
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Old 12-15-2016, 07:58 PM
 
Location: Wisconsin
21,539 posts, read 44,010,725 times
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Use the Morningstar chart - plug in the date range you're looking at. Should give you an idea of highs and lows.

Also, use the "more" feature, and compare the two funds over various time periods. Quite interesting. During the past ten years there is very little difference with the exception of the 5-yr period - but since inception (eons ago), VWELX has outperformed VWINX substantially - by about 40% - i.e., $774K v. $1.09M.

I'm not a kid, so I use VWINX as a portfolio stabilizer for when times get bad. I have other equities which are always more negatively affected in a downturn. VWINX holds up very well during those times. Like bpollen says it's a "sleep-at-night" fund. During those bad times, I'm always talking to myself - why am I taking the risk for a few more points when VWINX is so much less volatile. lol

Last edited by Ariadne22; 12-15-2016 at 08:30 PM..
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Old 12-15-2016, 09:50 PM
 
14,260 posts, read 23,991,339 times
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Originally Posted by TuborgP View Post
Yup and yup. Even since my initial loss I have made that up plus some. My latest and most current example is the new Vanguard Core Bond fund that opened earlier in the year.
https://personal.vanguard.com/us/ins...ment-C2-032016

I put the money up early knowing the opening share cost would be $10.00 per share. It is a low fee actively managed intermediate bond fund. With the potential to navigate the current waters more deftly than a bond index fund. At first good, very good and then the expected changing bond market value and now a share value of $9.81 with a yield of 2.7 percent.
https://personal.vanguard.com/us/fun...FundIntExt=INT

If you note the chart in the lower right corner my initial entry is still in the plus category however I know subsequent investments aren't. That's the way we roll.

When I was younger, I invested all my money in Vanguard Wellington, Vanguard GNMA and Vanguard Windsor II. Since then, I have added more funds. Sometimes I wish that I had remained invested very simply.
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Old 12-15-2016, 10:48 PM
 
26,090 posts, read 28,500,170 times
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Originally Posted by TuborgP View Post
Perhaps not just unrealistic expectations but also going all in with a one time amount instead of going in over a time period. When you do that you are at the mercy of one moment in time. If you do go all in at one time and add new money to your windfall it cushions the impact of timing.
Unless you plan on withdrawing a lot in a short time period, it really doesn't make a lot of difference over long periods of time. Even if you bought it at peak, it hasn't dropped all that much. It should be considered part of the fund's normal fluctuation...which it is.
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Old 12-15-2016, 10:50 PM
 
26,090 posts, read 28,500,170 times
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Quote:
Originally Posted by jlawrence01 View Post
^^^
No one seems to complain when you put a huge chunk of money in and your value increases 25% in one year.

If you invested in Vanguard Wellington and Vanguard Wellesley for the past 30 years, you did very well. Very well.
Exactly. And I don't expect that to change over the next 30 years, unless something happens that takes the entire stock/bond markets down. Both funds are so cheap, they really don't have to do anything too spectacular to outpace their category averages. The good news is they also have good management on top of low fees, which is icing on the cake!
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Old 12-16-2016, 06:13 AM
 
Location: RVA
2,165 posts, read 1,266,382 times
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I agree, its a great fund, and once the bond market is finished getting hammered by the Feds rate rises, then THAT would be a great time to invest in Wellsley. But still for the long term. It is not a place to park cash while deciding. My point was 5-6 months ago equities were on a(nother) tear, and bonds were rightly predicted to drop, so Wellsley made little sense to get in at that specific time. What has Wellington done in the same period?
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Old 12-16-2016, 07:08 AM
 
29,779 posts, read 34,867,277 times
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Quote:
Originally Posted by Ariadne22 View Post
Use the Morningstar chart - plug in the date range you're looking at. Should give you an idea of highs and lows.

Also, use the "more" feature, and compare the two funds over various time periods. Quite interesting. During the past ten years there is very little difference with the exception of the 5-yr period - but since inception (eons ago), VWELX has outperformed VWINX substantially - by about 40% - i.e., $774K v. $1.09M.

I'm not a kid, so I use VWINX as a portfolio stabilizer for when times get bad. I have other equities which are always more negatively affected in a downturn. VWINX holds up very well during those times. Like bpollen says it's a "sleep-at-night" fund. During those bad times, I'm always talking to myself - why am I taking the risk for a few more points when VWINX is so much less volatile. lol
Approaching 70 and having made some plans for about age 80 involving a CCRC I have had to rethink a number of thinks. Still investing and my intensity of is soon about to pick up a lot and so I have multiple time horizons as I have always had but the targets are changing and Wellesley fits in well. Hopefully dividends will rise with interest rates and both will eventually stabilize at higher levels and Wellesley will prove to be ideal.
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