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I know this is a dividend fund. We had some extra money around and opened this up about 5 months ago. Constantly going down. It got such high reviews. With everything going up, why is this down? Any recommendations? I know it's just a very little bit we put into this, but it's obviously not the right tool. Thanks
I noticed the same thing and also bought about a year ago and again about 5-months ago. I expected it to do better, but was pretty much buying as a comparison against some managed funds. It doesn't appear this one is making anyone any money.
I know this is a dividend fund. We had some extra money around and opened this up about 5 months ago. Constantly going down. It got such high reviews. With everything going up, why is this down?
Wellsley's a bond-heavy fund, and bonds (especially munis) are being slaughtered right now.
Wellesley overall is not being slaughtered b/c of the equity component but, indeed, the bonds are taking a hit.
Wellesley YTD return is about 7.6%. Not bad for low-moderate risk. Fund is 50-60% bonds. Fund has been ticked down a bit recently because of expected rise in interest rates which causes bond prices to drop. Fund is off about 1.5% from its high in August as interest rates have gone up. Probably when OP bought. Nonetheless, Wellesley is a relatively safe place when times get bad.
I have 20-25% of my portfolio in this fund and will keep it that way. When the market takes a bad turn, that fund is the least stressed and can even show a gain. It's a great comfort.
I've learned over the past couple of years that funds seem to go down a bit after I buy in - but, over time, this reverses itself. Which is why "stay the course" is so important. Year-in and year-out the peaks and valleys level out. Over time, Wellesley will return anywhere between 5-7%.
Wellesley is a safe place for part of your money - although at this point short-term, it may not keep pace with a fund heavier in equities.
It has large bond portfolio. It did great first half of the year and then it turned down. I switched my kid's retirement money from Wellesley to Wellington and was very happy about it.
All good answers. You didn't say how many other and what type of funds you have. If u bought it for dividends they are doing as expected. If you got it for capital gains that's another story. All in one mixed equity and bond funds have the disadvantage of needing to sell both the fixed and equity parts if u want to unload or buy just one part. That's another discussion
I do have both Wellesley and Wellington plus others.
OP - Wellington has been performing better b/c it's top-heavy equities, but you can't buy it if you're not already in it or don't have an account at Vanguard. If you have an account at Vanguard, then it's a piece of cake.
OP - Wellington has been performing better b/c it's top-heavy equities, but you can't buy it if you're not already in it or don't have an account at Vanguard. If you have an account at Vanguard, then it's a piece of cake.
At this age I am fortunate to have both money in and money out decisions and have developed what works for me which is multiple portfolios with multiple companies
OP - Wellington has been performing better b/c it's top-heavy equities, but you can't buy it if you're not already in it or don't have an account at Vanguard. If you have an account at Vanguard, then it's a piece of cake.
Yes, Wellsley and Wellington are mirror images of each other. At approximately 60% bonds and 40% stocks, Wellsley is best for capital preservation and income generation. At approximately 60% stocks and 40% bonds, Wellington is oriented toward moderate capital growth, but is more volatile then Wellington. So, OP, what are your investment goals: preservation of existing money, or growth? I suspect growth, in which case you could either swap Wellsley for Wellington (if you have a Vanguard account) or supplement Wellsley with another fund that's stock-heavy to get the overall stock percentage of your portfolio higher.
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