Best Mutual Funds Now

This is the fifth article in a series of Vanguard mutual fund articles.  Here at Best Mutual Fund Now we are dedicated to highlighting the best mutual funds.  The Vanguard Wellington fund fits that description.  The last article provided a review of the Vanguard Wellesley Income Mutual Fund. This article will provide a review of the Vanguard Wellington mutual fund.

Overview of the Vanguard Wellington Mutual Fund:

This Vanguard mutual fund is a balanced fund with a heavier concentration of stocks than bonds.  This Vanguard balanced mutual fund invests two-thirds of its assets in large cap U.S. stocks and one-third of its assets in high-quality U.S. bonds.  By combining large cap U.S. stocks and high quality U.S. bonds, the Vanguard Wellington fund is designed for an investor looking for a balanced fund that will achieve investment growth without large fluctuations in share value.

Who should invest in this Vanguard Mutual Fund?

This balanced fund is for the investor who is looking to invest for the medium to long term.  Since Vanguard mutual fund managers will be actively choosing which stocks to buy, there can be risk that the share value of the mutual fund will decrease.  Therefore this Vanguard Wellington fund is not for the short-term investor. Additionally, this Vanguard Wellington fund has a minimum investment of $10,000.

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 balanced fund has a low 0.27% expense ratio.  This .27% expense ratio is much lower than the average 1.20% expense ratio in the industry.

You must be aware of Vanguard’s account service fee of $20 per year for non-retirement accounts.  Vanguard charges this account service fee for accounts with minimum investments.  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 Wellington Fund:

For the past ten years, this fund has had an average annual return of 6.86%.  The industry average return over the last 10 years was 4.21%.  Over the last five years, Wellington mutual fund had an average annual return of 9.18%.  Over the last year, the Vanguard Wellington mutual fund has experienced an average return of -3.54%.

The Wellington balanced Vanguard mutual fund is great for any investor seeking to invest in a balanced mutual fund with investments in the United States large cap stocks.  If you have a medium to long term investment horizon, this balanced vanguard fund could be worth looing into more.

Leave a Reply