- I Just Moved EVERYTHING To Wellington Fund!
- Vanguard Wellington™ Inv – VWELX
- Nothing Boring About Balanced Funds
- Vanguard Wellington™ Investor Shares – VWELX
- Vanguard Wellington 5% Withdrawals 2001-2017
- Vanguard Wellington™ Admiral™ VWENX
- Vanguard Wellington Vs Wellesley
I Just Moved EVERYTHING To Wellington Fund!
all right so i just sold everything to,move everything into wellington now the,i got a weight,t plus one or t plus three i cant,remember but uh im actually uh,im only 51 my better halfs only 47 so,why would i possibly have 30 was,wellington probably,about 35 bonds,i actually think bonds are gonna perform,decently over the next five to ten years,i do i think this is a trade thats uh,its undervalued and i think theres a,long-term value there now youre not,gonna im not gonna make any money in,bonds im telling you right now,um in terms of what the upside is i,dont i dont expect to make any money,i think its downside risk protection,and i think during a deflationary time,that will come after this insanity um i,believe absolutely could be wrong i,think boss will show to be a good,uh place to be for a portion of my money,i still want dividend paying stocks so,when i sold my vtv which is what i had,the the by far and away to my biggest,holding,uh i still want dividend paying stocks,thats what wellington has,and so im saying look im 51 im saying,i think for the next you know basically,five to ten years the markets are going,to be,less likely to perform stock wise with,still the same amount if not more risk,and i think bonds if we go to a,deflationary place,will actually perform quite nicely when,i say im not going to make that money,when youre not making a deflationary,time not making any money is the same as,making money if that makes sense and,what if im wrong all right then i i,miss out on uh upside uh so lets take a,look what wellington has done relative,the s p 500 shall we because this is,let me just explain something,the periods from 1930s to 19 basically,1929 to 1937 the great depression or,even 1938.,bonds did fine japan bonds it fine you,know what did not do fine japan,1930s were stocks thats just a fact you,can say the periods from 1966 to 1982 we,can look at wellington to see how it did,compare the s p 500. even that numbers,look pretty good so if you have a sneaky,suspicion,that what what has just transpired over,the last 13 years is unlikely to happen,again i i just i frankly dont see it,happen again 80s and 90s,and the teens were freaking kick butt,take names the odds were horrible and,horrible its only down i think the odds,were basically broke even,so three of the last four decades,uh the mark is just kick butt take names,one of those four decades they did,horribly so on average thats a thats,pretty significant growth,i think weve got all we can out of,globalization i really do if i was,talking to guy today,i forgot who he worked for some kind of,plan some kind of uh,furniture making plan some like office,supplies or something like that i forgot,but anyway um they used to manufacture,almost all their product in in house in,the united states they used to,and hes been in the business 30 odd,years so its like i think he was saying,10 when he first started was outsourced,and now its like half,private equity comes in buys them out,what do you think private equity is,trying to do well theyre letting labor,go you know they pay they pay them,handfully to leave theyll walk away,why do you think theyre doing why are,they doing that because they want to,maximize profits whats the best way to,maximize profits to reduce expenses,whats the best way to reduce expenses,not have stuff built in united states,i think weve i think weve squeezed,that uh that that orange as much as we,possibly can,the the easy orange juice to who have,been made from that squeeze is gone i,really believe that on top of the,shipping costs as we go more net zero,and all this just the the products is,going to be more and more expensive,to ship from china china vietnam stuff,is its just its this,like i could be wrong i could even be,justified this to myself thats fine,but if im wrong and wellington does,just what it did in 30s and just what it,did in the 70s um ill take that any day,of the week just what it did in the odds,ill take that any day of the week to,give me some downside wrist protection,on top of that to give me some,deflationary wrist protection so lets,take a gander shall we hold on a second,so you can go to my man uh dan,cooliberts website this is 55e dot co,dot co co,not uh com but co 55e and were gonna,put in wellington,and uh were gonna go back,lets see were not gonna take any money,out were just gonna start each with a,hundred thousand bucks,and well put in and i havent done this,so were gonna do it together so if you,think ive,i have no clue what wellington has done,relative to,s p 500 and were going to do 100 000 in,each okay there we go,and were going to go back to as far as,we can,starting my blink,and were going to go to 1920 i think,its 1930 is when we can start 1931,and well go,just to 1940.,there we go all right so lets see that,looks right,cool,it says wellington does go back that far,oops,there we go,all right,so wellington,in 1931 was down 26,s p 500,was down 44,but inflation was down nine so net of,inflation s p 500 was actually down less,than what happened in 2008 tell me,thats not,crazy um so in 2008 the s p 500 was down,37 percent throw what two percent,inflation there,thats nuts when you think about it all,right so you can see s p 500 is down 44,wellington is down uh 26.,uh 2000 1932 wellington was down 1.8 s p,500 is down 5.8 all right so at the end,of night was the 1937,at s p 500 wellington was down more than,the s p 500 thats interesting,uh 1940 s p 500 is down the beginning of,the war that and that respectively,wellington was down there,pretty interesting actually so basically,by the time,um,uh 1954,rolled around wellington was worth 140 s,p was worth 127,but look what the cost of goods were,there less in 1940 than they were in,1931 because of deflation,uh by the end of 1950 wellington is,worth 328 s p 500 is worth 304. all,right so i mean i its just the numbers,are the numbers man we had 20 years,where wellington did better,i think 1954,was one uh,lets see 19 what do we say 1950,right there and then 19 so 1950 and 51,the s p 500 just thats when they took,off so 1950 51 52 53 looked at so by,this time the s p was at 503. wellington,is only at 416. and i dont think its,ever looked back,um but lets take us keep looking here,lets keep going lets see what we got,so here,1963 wellingtons 1.17 s p 500 is 2.12,million uh thats 32 years in youre,dead i mean im sorry you just didnt,survive that long and here you go so by,1967 s p 500 is worth twice in,wellington,26 years in,we go to 1970,right here,yeah so i mean for the long long term,wellington did significantly worse than,s p 500 because of bonds but man ill,take that uh by the time,2021 rolled around,wellingtons worth 200 million and s p,500 was worth 700 million uh but yeah he,said but youre dead all right so ill,take that man so lets go down to 1966,to 19 oh theres my boys hey boys 1982.,so basically took,22 years for the wellington to beat the,well for the wellington to lose to the s,p 500.,thats a night thats yeah thats a long,time a long time a long time were all,dead as kane said,1966 and 1982 so in 1966 we start with,100 000 bucks,1982 wellington is going down to 259,s p 500 is 303.,so from 66 to 82 the wellington,basically kept even stephen almost a,little bit behind you know a little bit,by but not much the s p 500,in 1974,right here wellingtons at 97 s p 500 is,that 99 in 1977 wellingtons at 138 s p,is 157. ill take that man in fact in 19,uh,yeah ill take that any day of the week,so now lets go to 2000.,the 2 000,right here were going to go to 2009,another 10-year time frame i,cherry-picking sure,absolutely after the last 13 years i,dont know why you would not start to,think theres some downside coming youd,better protect it,uh 2000 2009 wellington is worth 148 as,well see 181 s p is worth,90 dollars all right and by 2008,wellingtons worth 148,s p 500 im sorry wellingtons worth 181,s p 500 is worth 90 000 bucks at the end,of 2009. so wellington almost got was up,80 s p 500 was down 10 perce
Vanguard Wellington™ Inv – VWELX
hello and welcome to this weeks plan,review im brian williams from north,shire consulting which is a registered,investment advisory firm,today were going to talk about vanguard,wellington so each week in my facebook,group 401k and beyond,we pick a morningstar category we list,the 10 biggest funds in that category,and then we give the opportunity to,members of the group to vote on,which fund theyd like to see a more,in-depth analysis on so,they picked vanguard wellington fund,which is a balanced fund so the category,this week was that moderate allocation,fund with funds,between 50 and 70 equity so,in this video well talk about fees and,expenses the composition of the fund,a little bit of manager turnover and,then where this fund might fit in your,portfolio,and how we rate this fund overall,one of the things thats interesting,about this fund is their prospectus,benchmark who they,compare themselves to is the s p 500,which is kind of interesting from from,a balanced fund standpoint usually,theyll pick an index thats,sort of a blended index but this fund,has been around so long theyre just,comparing it to,the equity index so so when we do some,of the comparisons against the benchmark,keep that in mind,from a style box standpoint which we,always look at the equity style box is,going to be right in the middle of,large cap there large cap blend so we,know from these videos the top,three boxes are large cap then it goes,down to mid cap and small cap,and left to right its value blend and,growth so this is large blend so these,are going to be,the equity portion of this fund is going,to be invested in a lot of names that,you know,and its not going to dip down too much,into the mid and small cap,arenas a reminder that this video is,for general education nothing shared in,this video is to be considered specific,tax legal or investment advice,and certainly dont act on any,information you see in this group,without first consulting with your tax,legal or investment advisor,we are an independent advisory group,with no affiliation of the reviewed fund,we may or may not have a position in,this fund,with client assets so this fund has been,around a long time,since 1929 and its got 120 billion,in assets under management so when you,look at the amount of holdings 1151 it,sounds like a lot,but remember with these balance funds,theyre going to have a very large bond,positions,which tends to increase the number of,holdings they have,and then also from an equity standpoint,even though theyre primarily large cap,they do have some mid and small they,have some international in there as well,this is an actively managed fund so that,means you have a management team,of portfolio managers and analysts who,are buying,and selling securities in there and,deciding how much of them to put in,thats different than an index fund,which weve talked about before an index,fund is following a rules-based list and,how they put that portfolio together,so theres been a little bit of manager,turnover here,nothing too crazy here but theres,basically two different sleeves,so you have the equity sleeve and the,bond sleeve on the equity side,we had daniel posen took over in 2019,and on the bond side you had keo retired,in 2019,and then you had michael stack is,retiring right now so,lauren miranda is going to take over,most of the bond side,these are individuals whove worked a,few years for the people that theyre,replacing so,obviously these are retirements that,have been a long time coming so they do,a good job making sure theres some,overlap there its not like somebody,retires and they have to,you know go on indeed and look for a,portfolio manager thats not what,theyre doing here so,similar philosophies taking over um and,they take over with a fairly large,portfolio youre not going to see,a ton of turnover here with new,portfolio managers coming in,we talked about those managers and the,sleeves that they run so,the equity portion is 65 and that leaves,35,for the bond group to run,from an asset allocation standpoint we,talked about the two sleeves so,youve got the equity portion running 65,percent of the portfolio,and then the bond group is running 35.,so one of the things thats interesting,here is they dont,necessarily work together a whole lot to,look at their positions but they do have,a five percent cap,where the bond and the equity position,cant be more than five percent,of the overall fund so weve run into,that a little bit here,late last year microsoft with their,stock and bond positions,was right up against that five percent,number and now theyre running,into that a little bit here with with,google because because the equity,portion is right at that five percent,number,one of the differentiators about this,fund as compared to,uh its peer group and the category um,is there theyre primarily going to be a,large in in,even giant market cap weighting here so,their average size company that theyre,investing in is about 220 billion,whereas a category is about half that,and thats because the category invests,in some mid cap,and some small cap so mid and small from,a category standpoint its about 14,where its really a trace less than a,percent inside the wellington fund so,its going to be primarily in the larger,fun name so,you need to think about that when youre,putting your portfolio together a lot of,times people will use a balanced fund,something like a wellington if,if its going to be the only fund they,have maybe they have a small ira from a,rollover from a few years ago and they,just want to pick that one fund but just,understand that you might be,underweighted a little bit in mid and,small caps so,you might want to make up for that in,another account that you have or,potentially,build around that with with another fund,or another index there,on the um on the sector side i mean,youre going to find that they are,going to you skew a little bit towards,the value side so theyre going to have,a little bit more in names like the,financial services i mean,historically companies that to pay a,dividend uh you see a little bit more,there in hell,in health care but overall they dont,deviate too much from,from what the category invests in but,they are going to skew a little bit,towards the value side,lets take a look here at the these are,just purely the equity holdings so,we talked a little bit about google,alphabet running up against that five,percent number,and also microsoft where they were at,the end of last year with that five,percent number so most of that was,coming from the equity side,with a little bit coming from the bond,side putting,putting that five percent number,together so again these are all names,that most people know,because they skew so far to that large,cap size,this is a vanguard fund even though its,you know run by wellington but obviously,you know even though its an its an,actively managed fund its its still,going to skew way lower,on the expense ratio side so its 24,basis points for the share class,thats two dollars and forty cents for,every thousand dollars you have invested,whereas the category your typical,balance fund here is gonna be eight,dollars and fifty cents for every,thousand dollars you have invested,there are a couple different share,classes so this is right from from,the vanguard site the numbers we ran in,this,in this presentation we picked that,investor share class at 24 basis points,but they do have the admiral share class,at 16 basis points,different minimums you know you have the,3000 for the investor share class 50,000 for admiral different programs might,give you access to these funds at,with different minimums so if youre in,a 401k program that has,vanguard funds you might be in at that,admiral share class but,it is important to take a look at that,and see which share class,you are in because you can save a little,bit there on the basis point side so,even if youre in the 401k plan just you,know raise your hand on the next meeting,and ask,why youre not in the a
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Nothing Boring About Balanced Funds
hi Im Christine Benz for,morningstar.com could investing well be,as simple as buying a boring old,balanced fund and calling it a day,joining me to share some perspective on,that topic and share a few favorite,funds is Russ kennel hes morning stars,director of manager research Russ thank,you so much for being here glad to be,here,Russ lets discuss balanced funds I,think some investors say well Im too,sophisticated for that but lets discuss,some of the pluses that come along with,these all in one stock bond funds well,yeah I think there are a few one thing,weve talked about in the past is how,less volatile funds tend to work well,for investors and so of course if you,instead of going having just stocks if,you combine it with bonds say in a 6040,mix the classic mix its less volatile,and its easier on investors its just,less drama and that works well for,investors also there are some firms that,are very good at stock and bond,selection obviously you want that or,its theres no point right buying a,balanced fund and and again theres some,benefits of combining the two so I do,think there are some benefits even even,just simply rebalancing within a fund is,a little more efficient than if Im,doing it separately with funds because,you can do it on a security basis right,some investors I think gets let inertia,take hold in terms of doing that,rebalancing they might not want to sell,the thing thats performed well so it,does seem like thats a feather in the,cap of balanced products lets talk,about some of the negatives I think one,of the ones that you might hear from,especially more sophisticated investors,is I want control over my asset,allocation with a product like this and,kind of seating control exactly,obviously a lot of people over time want,to gradually move more into to bonds and,make other adjustments and you cant do,that with in a balanced fund and so I,guess one idea would be to not make it a,huge holding but if you have other,holdings that still allow you some of,that flexibility you can get around that,but youre right youre giving up some,of that control which which is an,important factor okay and some of the,funds some of the large balanced funds,are domestically focused right,so for investors who want to make sure,that they have a globally diversified,portfolio I guess it depends on the fund,but they might not be getting it yeah,theyre really a wide variety of,allocation funds out there some are very,global some are a little global some,will use say a manager choosing among 30,different sleeves within the firm others,will just be classic US equity US bonds,so there really are a wide variety so,you can really pick what fits your needs,best,okay so you brought a short list of,balanced funds we call it allocation 50,to 70% equity funds within this category,the three funds that youre gonna,highlight all have a value bias so lets,talk about why that is is that your bias,perhaps or why is it that some of the,funds that you really like do have that,value bias built-in yeah its funny that,a lot of the best allocation funds out,there have a value tilt I think one,simple reason is that value strategy has,more income on the equity side so it,overall you have greater income for,investors and and obviously thats an,appeal of a fund I think another reason,is simply value is kind of a,conservative outlook of equity investing,and balance is kind of a conservative,package for it so I think theres,another reason that those have,historically gone together there arent,a lot of great growth balanced funds,oddly enough okay,so lets delve into the funds that you,like one is dodging balanced,obviously I think epitomizes what youre,talking about about a shop that is good,at both fixed income and equity,investing yeah and really they do it,fairly similarly its its all about,issue selection for them so they have a,lot of good managers and analysts who,are very good at selecting good stocks,good individual bonds which means,corporate bonds so the bond portion also,has mortgages and Treasuries both an,emphasis on corporates and dodges just a,very stable long-term focused firm and,they have pretty low costs which is,another important part of a balanced,fund is you dont want to pay equity,fund,for a mix of equities and ponds you want,somewhere in between those two and dodge,gives you a good value there okay Oh,mark equity and income is another fun,that you like lets talk about it yeah,as you know mark is really about,security selection and equities and and,thats what really is the dominant story,here clogged McGregor is a very good,stock picker there are theres a bond,portion here but its really about the,equity side and of course oak markets,its a value strategy relatively,concentrated but just build a really,good track record over the long haul,okay Vanguard Wellington is a favorite,among our morningstar.com viewers it,might be familiar to many of them,because its so large this one I wanted,to talk about rust because it is,expecting a manager change next year so,lets talk about that weve still got it,at a gold rating lets talk about why,you and the team still think its a very,solid pick thats right the equity side,manager at vows of Wellington is set to,retire next year and so theyre in the,middle of transition we still have a lot,of confidence though because,Wellingtons a deep firm these,transitions tend to be pretty smooth,theres really a team around any manager,whos been thats been contributing all,along so a lot of confidence around that,also their fixed income side is very,strong and then of course vanguards,incredibly low fees youre paying about,20 basis points for this fund you know,is a great deal so that helps out,regardless of the manager but it is,something I think its worth watching,how the transition goes and well be,watching to see if there are any changes,but you know we just have a lot of,confidence in Wellington and and thats,reflected in the rating okay Russ always,great to get your perspective thank you,so much for being here youre welcome,thanks for watching Im Christine Benz,for Morningstar calm,[Music]
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hi im brian williams from north shower,consulting,thank you for taking a few minutes to,watch this fund review,in this video well talk a little bit,about the fun family that were in,well talk about fees and expenses,performance against the category,and then well wrap it up with how this,fund might fit into your overall,portfolio this is considered one of our,shorter form fund reviews,if youre looking for a little more,in-depth analysis check out some of our,longer form fund reviews,that fall into that 10 to 15 minute,range,a quick reminder here anything in this,group or in this youtube channel,is just general education not specific,tax legal or investment advice,consult with your advisor before you act,on any of this information,a reminder too that we are an investment,advisory firm,no affiliation to this fund and we may,or may not have a position in it with,client assets,before we get into the specifics of this,fund lets take a moment to talk about,vanguard as a fund,family with 7 trillion under management,and working with almost 30 million,investors many are familiar with the,vanguard name,theyre most commonly known for their,index or passive investing,but they have really strong roots in,active management as well,theyre client owned which means fund,shareholders own the fund,which in turn own vanguard,this is an open-ended fund or mutual,fund as we know it,these are identifiable because they have,a five-letter ticker symbol,that ends in x one of the things about,mutual funds its a little bit different,than an exchange traded fund,is mutual funds if you place an order,during the day,that gets executed at the end of the day,based on end of the day values,and thats different from an exchange,traded fund which gets traded throughout,the day,another key difference between a mutual,fund and an etf,as a mutual funds portfolio holdings,dont have to be reported,on an everyday basis like an etf does so,when youre looking under the hood of a,mutual fund those,holdings inside may or may not be the,actual ones that youre purchasing,when you purchase the mutual fund this,is an actively managed fund,that means theres a portfolio manager,and portfolio,analysts who decide which securities go,in this fund,and how much of those securities they,invest in this is different than an,index fund or passive fund,which is following a list of securities,based on a set of rules,this fund is open to new investors and,this is not a leveraged fund,theres a couple things that we look at,when we see a simple asset allocation,like this,the first is equity to bonds or stock to,bonds so cash u.s bonds non-us bonds,obviously fall in that bond category and,then we look at the equity exposure,this portfolio is more so weighted in,equities that means its going to be a,little bit more,on the aggressive side we know over time,that equities have outperformed bonds,but they also take a little more risk to,do that,the other ratio we want to look at is,u.s versus non-u.s,as you can see by this portfolio its,primarily invested in the u.s,so we want to make sure that fits in,with our overall allocation,and our complete risk tolerance profile,we always talk about expenses when we do,our fund reviews,heres why the expense ratio is taken,from the return that the portfolio,produces,the expense ratio is internal meaning,you dont necessarily see it,it comes out in the returns we need a,point of reference when we compare these,expenses,so we use the category average as you,can see here,the expense ratio is significantly lower,than the category average,now that weve looked at expenses what,exactly are we paying for,if we own this fund were hoping that,paying this expense,will help us outperform the other funds,in the category,without deviating too much from the,objective,this fund has outperformed its peer,group a whopping nine,out of the last 10 years,thanks again for watching this fund,review we encourage you to subscribe,like and comment below with your,feedback be sure to check out our longer,forum fund reviews,and our facebook group 401k and beyond
Vanguard Wellington 5% Withdrawals 2001-2017
Im a French so now were going to do,the Wellington fund for Vanguard VW elx,VW e LX is what were gonna do here,today Im excited because this is one of,my favorite funds of all time and Im,not saying you should buy it Im not,saying you should not buy it Im not,saying anything about shared the numbers,with it and you cant help but be,impressed its just no other way around,that the Wellington fund is like forever,Ive been around it from 1929 I think,his once founded thats where John Bogle,cut his teeth with a Wellington asset,management company and theyre still in,Boston the fund itself is actually,headquartered in Valley Forge which is,where Vanguard is so Im not sure if it,has no semblance of relationship with,Willington asset management and the,Wellington mutual fund I dont know but,I just know Vanguard essentially what,Vanguard will do the subcontract some of,the fund management outside of their,index funds so the folks who run the,prime cap and the in his twin-brother,the capital opportunity theyre not I,dont think their Vanguard employees I,dont remember how it has been so long,so I worked at Vanguard but back in the,late 90s they had the prime cap fund,they closed that to new investors and,they opened up another one called a,capital opportunity which is open to new,investors the same people ranted exact,same fun essentially maybe the capital,opportunity was a little bit more,aggressive but if memory serves those,guys were not Vanguard employees they,just subcontract out to bank,Bhangarh subbed them out I dont know if,thats still the case anymore,Wellington again at Owens used to run,the Wellington health care fund the,Vanguard health care fund he was part of,Wellington Asset Management I dont,think he was a vanguard employee again I,dont know how that works but Wellington,thats again goes back a long time a,solid investment performance so were,gonna go into how the Wellington fund,served from 2001 till 2017 so subscribe,thumbs up comments you want to do the,Josh a favor watch the episode as long,as you can your watch time Ive since,been made aware is helpful to me as well,so activity are you two algorithms love,you to be active that means thumbs up in,comments and subscriptions of course but,the AUSA love duration of watch time so,a ten minute video if you watch usually,over 50%,YouTube like I said if you watch for a,minute YouTube doesnt like that so if,you dont like me you should probably,turn off right now but,if you do I mean stay tuned alright so,lets dive into this so I got to make,sure my mic okay had a couple of,technical issues here a few minutes ago,and I had to do this whole episode over,ice OVW elx the wellington put $100,000,in there were taking $5,000 of dont,know 5% a year off so the first year,just like the Wellesley were in the,green and were able to take off 50 209,the next year not so good who are our,income fell to 4608 you still at 4 full,of 92155 92158 are life strategy,moderate growth fund you might have,remembered that,thats a 60/40 Stockton bond mix roughly,that is international as well and that,phone is down about 35,000 as was the,Wellington similar fun and so we got hit,and our income got him down by a third,were right back in the green back in,black the following year to 54 57 an,income and $109,000 in portfolio value,took on chinoe would have been 2011,again we were actually up but we took,more income off the portfolio than the,market gave us 2015 we did draw down,with a bit but look at that were able,to break 7,000 this is the first time if,memory serves of all these numbers Ive,run we were able to break 7,000 in terms,of income and here even with this,$136,000 you know roughly $9,000 decline,$7,000 decline were still well above,6,000 bucks income fast-forward to the,end of 2017 were almost at $8,000 in,income on top of a portfolio value of,one hundred fifty seven thousand bucks,alright so here we have a hundred and,two thousand dollars of income weve,taken off we start with a hundred,thousand have taken out more than what,we start off with and we have a hundred,and fifty seven thousand dollars of,schewe for it,need i say more thats thats what you,want to see right there during some of,the worst bear markets weve ever had,and its just thats incredible so I,mean just you cant argue with that as,you can you cant make an argument,against the active management when you,see numbers like this relative the the,stock bond portfolios that are indexed I,mean thats just thats impressive my,friends and the nice thing about,Wellington I might be sure what the fees,are lets take a look,sure Mike doesnt get messed up there so,the fees on Wellington I mean Im sure,its 0.35 or something like that lets,see if I got that up here and Ive,always been a fan of Wellington manager,and I think I mean I tell you I think I,knew the guy a guy from there uh you,think I used to know one of the PMs of,portfolio managers if memory serves as a,long time ago and he was a good guy I,liked him quite a bit I mean he was,making money Ill tell that right now,but he was a good guy and and he you,know he he was a large cap value,investor and thats just a fact so lets,take a look at the profile of the fund,right yeah so its uh expenses right,there 0.25 0.25 I mean youre gonna have,a hard time convincing me thats not the,way to go you really are five-star,rating by Morningstar 0.25 been around,forever since 1929 same manager in place,since 2002 I mean just as yielding right,now two and a half year todays 1.53,lets make sure thats thats what Yahoo,says but Ive challenged Yahoo at,something a year today Ive always had a,problem with Yahoo zero day stuff which,is why I look at market watch Ill see,what market watch says I dont even know,if that includes today but a big run,today,Dows up 800 points again this is 26,December 2018 for you guys watching,later so I dont know what the future,holds but I know we had a pretty,significant the worst Christmas Eve ever,and then lo and behold the word though,now we can say the best post Christmas,Day ever oh yeah that there it is thats,that Rach its 5% to lead huge stock,gains with 50 thats with 15 minutes of,trading off so year-to-date these guys,down okay,I said Yahoos your day stuff its just,I dont get it yeah theres down six,point nine four thatll be after thats,before todays clothes though so theres,a story Im Wellington fund my friend I,mean yes you cant beat it know that,well I mean I dont know that were,gonna see about the Franklin income fund,and then were always gonna see about,the American Funds Income Fund of,America to to wrap this up and then Ill,give you all of them one by one by one,will show you how they work and one big,spreadsheet on the whiteboard here so,subscribe stay tuned and well see you,next time thanks guys
Vanguard Wellington™ Admiral™ VWENX
hi im brian williams from north shower,consulting,thank you for taking a few minutes to,watch this fund review,in this video well talk a little bit,about the fun family that were in,well talk about fees and expenses,performance against the category,and then well wrap it up with how this,fund might fit into your overall,portfolio this is considered one of our,shorter form fund reviews,if youre looking for a little more,in-depth analysis check out some of our,longer form fund reviews,that fall into that 10 to 15 minute,range,a quick reminder here anything in this,group or in this youtube channel,is just general education not specific,tax legal or investment advice,consult with your advisor before you act,on any of this information,a reminder too that we are an investment,advisory firm,no affiliation to this fund and we may,or may not have a position in it with,client assets,theres a couple things that we look at,when we see a simple asset allocation,like this,the first is equity to bonds or stock to,bonds so cash u.s bonds non-us bonds,obviously fall in that bond category and,then we look at the equity exposure,this portfolio is more so weighted in,equities that means its going to be a,little bit more,on the aggressive side we know over time,that equities have outperformed bonds,but they also take a little more risk to,do that,the other ratio we want to look at is,u.s versus non-u.s as you can see by,this,portfolio its primarily invested in the,u.s so we want to make sure that fits in,with our overall allocation,and our complete risk tolerance profile,this is an open-ended fund or mutual,fund as we know it,these are identifiable because they have,a five-letter ticker symbol,that ends in x one of the things about,mutual funds its a little bit different,than an exchange traded fund,is mutual funds if you place an order,during the day,that gets executed at the end of the day,based on end of the day values,and thats different from an exchange,traded fund which gets traded throughout,the day,another key difference between a mutual,fund and an etf,as a mutual funds portfolio holdings,dont have to be reported,on an everyday basis like an etf does so,when youre looking under the hood of a,mutual fund those holdings inside,may or may not be the actual ones that,youre purchasing,when you purchase the mutual fund this,is an actively managed fund,that means theres a portfolio manager,and portfolio analysts who decide which,securities,go in this fund and how much of those,securities they,invest in this is different than an,index fund or passive fund,which is following a list of securities,based on a set of rules,this fund is open to new investors and,this,is not a leveraged fund,theres a couple things that we look at,when we see a simple asset allocation,like this,the first is equity to bonds or stock to,bonds so cash u.s bonds non-us bonds,obviously fall in that bond category and,then we look at the equity exposure,this portfolio is more so weighted in,equities that means its going to be a,little bit more,on the aggressive side we know over time,that equities have outperformed bonds,but they also take a little more risk to,do that,the other ratio we want to look at is us,versus non-us,as you can see by this portfolio its,primarily invested in the us,so we want to make sure that fits in,with our overall allocation,and our complete risk tolerance profile,we always talk about expenses when we do,our fund reviews,heres why the expense ratio is taken,from the return that the portfolio,produces,the expense ratio is internal meaning,you dont necessarily see it,it comes out in the returns we need a,point of reference when we compare these,expenses,so we use the category average as you,can see here,the expense ratio is significantly lower,than the category average,now that weve looked at expenses what,exactly are we paying for,if we own this fund were hoping that,paying this expense,will help us outperform the other funds,in the category,without deviating too much from the,objective,this fund has outperformed its peer,group a whopping nine,out of the last 10 years,thanks again for watching this fund,review we encourage you to subscribe,like and comment below with your,feedback be sure to check out our longer,forum fund reviews,and our facebook group 401k and beyond
Vanguard Wellington Vs Wellesley
why i still like wellington,over wellesley i still like equity,income funds over more conservative,funds i still like fidelity balanced or,fidelity puritan over more conservative,funds and the reason is just because of,bonds all right so i just got the horn,with a client uh doing our annual review,and she goes you know as shes kathy,from texas she goes hey uh,i just look at wellesley and its just,man it seems just be as good as,wellington,with less downside wrists it just looks,fantastic i said no i get it man i get,it you know the wellesley,has done great the problem with,wellesley anything thats predominantly,in bonds is the bonds and if you just,look at the history of how bonds work,and how bonds will work continue to,going forward theres is inevitably that,bonds are going to underperform relative,to what theyve done in the past now i,dont know if that means underperformed,relative to stocks i cant say that but,bonds will certainly underperform,relative with a previous returns its,just that simple so lets go into this,im going to show you,um hold on a second there we go,daily treasury yield rates and were,going to go to portfolio visualizer im,going to show you a couple of funds,were going to show you from 2010 to,2021,weve got a vanguard genie may and the,vanguard bond total bond index fund and,lets see what theyve done since 2010,and well see here that the uh,[Music],right here the compound annual growth,rate and the ginny may was 3.08,and the total bond was 3.65 all right so,thats thats what theyve averaged each,and every year since 2010.,so what do we do we look at the 10-year,treasuries were going to look at,10-year treasury on the daily treasury,curve rate now were going to look at,were just going to start with actually,the gene well well start with 10-year,just for simplicity,on 1-4 2010 it was 3.85,all right now we fast forward till the,middle of the year because this is this,portfolio visualizer the last is dated,as of what i think is,does it tell us the last,i think is that the end of august maybe,august august 31st all right good so,august 31st so were going to go to,the end of,july,all right right there,10-year,2.94 thats in the 10-year treasuries,2.94,70 or 2.3,jennie mae,3.08,10-year 2.94,and we go to the end of august if we,need to,2.47,jimmy,3.08,10-year treasuries uh on the the bond,market here if we go to a little bit,whats this a 20-year what do we got,here 20s,lets just give you a 20,and this is just government bonds not,corporate bonds well give you 20 years,on the government bonds,3.74,what did the,bnd do,3.65,you see the correlation there,is a huge correlation and remember the,total bond market has got some,corporates in there but predominantly,treasuries,and government sponsors entered,government-sponsored enterprises gses i,think like 70 of the total bond market,is gses or just treasuries outright,the point being is the rate that youre,getting today on your bonds is what,youre going to get for the next 10,years essentially if that makes sense so,if you look at the current 10-year,treasuries which just broke 1.5 by the,way,but lets go to uh current treasuries,um,2021.,this is going to wrap this up in a nice,clean bow for you guys to understand,here in just a second,there we go,and were going to just take a look at,the current treasury race so well go to,right here,1.47 on the 10-year,1.94 on the 20-year,point being is that,thats what you can expect basically one,and a half to two,its one half for government bonds two,for,mostly government with some corporates,thrown in there thats it man,thats just thats it thats what youre,gonna get,so anything thats predominantly in,bonds theres no way its gonna give you,more or less itll give you just right,unless it goes bankrupt theyll give you,a little bit more a little bit less on,any given year but over the course of,the correlation for 5 to 10 15 to 20,years its like 95,um and i just want to show you something,all right so were going to go back to,portfolio visualizer you can see on any,given year like here 2010,6.96 virginia may,7.89 for ginny may,2.35,negative 2.23 so we factor on that has,given us identical to what the 10 year,was doing when it started at 2010. then,it went up to,6.55 then went down to 1.3 it went up,went up went down went up one up was,going down again,i just i cant stress this enough man,the idea that the bonds are going to,give you what we had in the past is just,silly i i just theres just theres no,way its an inevitability if there ever,were one in the markets,bonds arent going to give you anything,if we go back to uh 10-year treasury,yields us i think it starts in 1990,yeah 1990.,and i mean just check out what the,10-year treasury was doing back then,like eight,yeah look at that seven point nine four,eight guaranteed government guaranteed,so youre getting eight percent yields,uh 30 was given to eight right there,so you were locking in in 1990 30-year,bonds at eight percent that just matured,so these lets go back to 1990,um,lets go back to 1991 so you can see,what they were doing,in 1991 a 30-year,uh treasury bond was paying lets say,whats the aud say is september,uh well go to september lets say,september 24th,all right so i guess september 20th it,doesnt matter 7.83 7.89 lets say 7.89,september 26th of 1991,lets go to september 24th,september 24th in 1991 is paying 7.89,so you bought that bond lasted for 30,years youre getting roughly eight,percent a year on that guy,guaranteed no risk is risk-free asset,fast forward till today,what are you getting on that puppy,remember basically 7.89 what do you get,now,1.89 1.99,dont be swayed by the previous,performances of bonds thinking youre,going to get that in the future its,inevitable you wont you cant its,unpossible,because no one is going to pay you,any value at all,for a bond that you bought with a coupon,less than two,if all of a sudden magically the coupons,of new issue bonds jump to eight your,bonds can basically be worthless,theres just no other way around that,people dont get how bonds work i wish,they would man,theres youre not getting any more or,less in the coupon thats all youre,getting,but i can sell my bond for a premium,what are you gonna do with the proceeds,if you buy another bond youre buying,another prompt for a premium a bond for,a premium,people think theyre so smart a lot of,times in this regard when it comes to,bonds and the bonds are the most,simplest thing there is a bond is issued,at three percent and matures at three,percent the bond can fluctuate in the,share price basically what does the,yields of the new bonds coming into the,market but at the end of the day when,that bond matures youre gonna get your,principle back thats it in the interim,somebody was getting a three percent,coupon regardless of the new bonds,coming in its just that simple,so 1991 bonds are issued paying eight,percent each and every year government,guaranteed those same bonds you want to,buy another 30 years paying less than,two now,same bonds and the bonds are selling,like hot cakes,youre not getting the same rates of,return on bonds now the bonds give you a,reprieve from stock absolutely thats,why i think wellington is great because,it gives you a cushion,that the s p 500 doesnt but youre not,getting growth in there you get two,percent if youre lucky thats not a,30-year bond by the way,its just i tell you man thats why i,like wellington at the end of the day,wellington,will give you the up the the stock,market potential of growing dividends,and it still gives you enough of a,buffer uh,that you dont freaking puke all over,yourself going down a a,a roller coaster when the markets get,tanked because you still got 30 35 in,fixed income thats why i like,wellington all right well see ya