VWEXN Vanguard Wellington for entire portfolio

[subiegirl]

Hello there,

I am looking for some input on whether having your entire portfolio in one fund, in this case the Wellington fund,  has any/multiple negatives. For someone looking for a 65/35 AA, does Wellington do the job?

Interested in all perspectives including better/more optimal options.

Thanks in advance!

[Rob_bob]

I don't see a much down side if you are happy with the AA for the long term.  Being actively managed it might not be tax efficient if held in a taxable account and you could find yourself paying taxes on cap gains without actually selling any shares.

[RWD]

The expense ratio of VWEXN is 0.18%. A 65/35 mix of VTSAX/VBTLX would have an average expense ratio of 0.044%, a quarter of the cost. The ETF equivalents (VTI/BND) have expense ratios of 0.03%, one sixth the cost. On a $1M portfolio you're throwing away $1,500/year right there by going with VWEXN.

[subiegirl]

I don't see a much down side if you are happy with the AA for the long term.  Being actively managed it might not be tax efficient if held in a taxable account and you could find yourself paying taxes on cap gains without actually selling any shares.

I don’t have taxable accounts, so it would be pretax IRA and ROTH accounts only.

[subiegirl]

The expense ratio of VWEXN is 0.18%. A 65/35 mix of VTSAX/VBTLX would have an average expense ratio of 0.044%, a quarter of the cost. The ETF equivalents (VTI/BND) have expense ratios of 0.03%, one sixth the cost. On a $1M portfolio you're throwing away $1,500/year right there by going with VWEXN.

Great point! Currently have VTSAX for the majority of my portfolio but since we are retiring at the end of the year, I was looking at options for adding some bonds. (We have a cd ladder for the first couple of years of retirement). I have a little VWENX and have not been unhappy with the returns but the ER is definitely on the higher end. Definitely a negative.