Vanguard Mutual Fund Review – Wellesley Income Mutual Fund
This is the fourth article in a series of Vanguard mutual fund articles. The last article provided a review of the Vanguard Short Term Bond Index Fund. This article will provide a review of the Vanguard Wellesley Income mutual fund.
Overview of the Vanguard Wellesley Income Fund:
This Vanguard mutual fund is an income fund designed to achieve income growth over the long-term as well as a consistent level of income for the mutual fund owners today. In order to achieve this long-term income growth and current income stream, the Wellesley mutual fund managers invest in various U.S. Treasury bonds, other government bonds, mortgage-backed securities and investment-grade corporate bonds. These various bonds make up 60% to 65% of its assets of this Vanguard mutual fund. In order to balance out the assets of this fund, 35% to 40% of the other funds assets are stocks that pay higher dividends. This might be stocks that have a history of paying higher dividends or stocks that are projected to pay higher dividends.
Who should invest in this Vanguard Mutual Fund?
This income fund is for the investor who is looking to earn current income and an increasing amount of income in the future. Because this fund is trying to achieve higher income growth in the future and moderate increases in capital, investors how are looking for an investment for at least five years should consider investing in this mutual fund.
What are the Vanguard mutual fund fees charged?
This Vanguard Income Fund is a no-load mutual fund. Vanguard no-load mutual funds have very low management fees. This fund has a low 0.25% expense ratio.
As with any Vanguard Mutual Fund, it does have an account service fee of $20 per year for non-retirement accounts. Please read the other article, Vanguard Equity Income Fund, to learn how to avoid paying this account service fee.
What has been the performance of the Vanguard Wellesley Income Fund:
For the past ten years, this fund has had an average annual return of 6.53%. Over the last five years, this fund’s average annual returns has been 5.87%. So far this year the Vanguard mutual fund has had an average return of 0.30%.
The Wellesley Income Vanguard mutual fund is great for any investor seeking to receive income. This fund combines stable income, income growth and capital appreciation. If you are looking for a stable fund, you should check out this fund. If you have any questions, please leave them in the comments below.
