Author Topic: Vanguard Wellington Fund VWENX  (Read 1531 times)

Duke03

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Vanguard Wellington Fund VWENX
« on: September 20, 2018, 02:38:50 PM »
I've been putting about 30% of my 401k into this fund for awhile now.  I'm currently sitting at about 13% bonds due to this fund and would rather be about 10% bonds.  I was thinking about selling some off and putting it into a growth fund.  I'll admit I don't have a huge selection when it comes to choices with the 401k.  Does anyone think now would be the time to sell?  In the past this fund has paid some good dividends, but that really hasn't been the case the last two years.... it pays just not all that great....  for the year it's in the black but it is my lowest performing fund by ALOT.

smallstache

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Re: Vanguard Wellington Fund VWENX
« Reply #1 on: September 20, 2018, 03:33:38 PM »
At 30% bond allocation, I would expect this fund to lag other funds. It is also a actively managed, albeit at less cost than most other actively managed funds.

If you want a passive Vanguard fund that is balanced, see if LifeStrategy funds are available.

jacoavluha

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Re: Vanguard Wellington Fund VWENX
« Reply #2 on: September 20, 2018, 03:51:02 PM »
why did you choose the wellington fund in the first place?

Another Reader

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Re: Vanguard Wellington Fund VWENX
« Reply #3 on: September 20, 2018, 03:56:57 PM »
Over time, Wellington has been a steady performer.  I don't object to management where a substantial part of the fund is in bonds.  Bonds are different than equities and performance can benefit from management.  These people manage Wellington, Wellesley, and several other well performing managed funds at a relatively low cost for Vanguard and have been associated with Vanguard for decades.  Bonds also belong in tax deferred or tax free accounts, so if you want to own some bonds in a 401(k), Wellington is a good choice among the balanced funds. 

The real question, however, is what are the best overall choices in your 401(k) and what is your preferred asset allocation.  Do you have good index funds available, or do you have only managed funds?  Whatever you are offered, you should pick the best of what's available to achieve the desired allocation.

chasesfish

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Re: Vanguard Wellington Fund VWENX
« Reply #4 on: September 20, 2018, 05:07:38 PM »
I'm a big fan of the Wellington Fund, its the only actively managed fund I own, roughly $120,000 worth.

If you want your bond portfolio to be smaller, I would just allocate more towards other funds until you get to your 10% allocation.  Its a great fund to own, some of the best managers in the business.  Its a favorite over on the boglehead forums

ian055

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Re: Vanguard Wellington Fund VWENX
« Reply #5 on: September 21, 2018, 09:41:05 AM »
I contribute to this fund in my company 401k also. My plan is run by Wells Fargo and my choices are very limited with hardly any low cost funds. It has performed well over the years and has a long history of performing well. I'm happy with owning it in my 401k.

If you want to lower your bond allocation % within your 401k without dumping Wellington, just select a stock fund (index fund if you have one) and increase the contribution % on that. I have done something similar. They just recently added a Wells Fargo/Black Rock S&P500 index fund to our plan. So i just started increasing my contribution % on that.

Dances With Fire

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Re: Vanguard Wellington Fund VWENX
« Reply #6 on: September 21, 2018, 11:11:56 AM »
Over time, Wellington has been a steady performer.  I don't object to management where a substantial part of the fund is in bonds.  Bonds are different than equities and performance can benefit from management.  These people manage Wellington, Wellesley, and several other well performing managed funds at a relatively low cost for Vanguard and have been associated with Vanguard for decades.  Bonds also belong in tax deferred or tax free accounts, so if you want to own some bonds in a 401(k), Wellington is a good choice among the balanced funds. 

The real question, however, is what are the best overall choices in your 401(k) and what is your preferred asset allocation.  Do you have good index funds available, or do you have only managed funds?  Whatever you are offered, you should pick the best of what's available to achieve the desired allocation.

^^^Have some in retirement accounts. During "the lost decade" 2001-2010, Wellington was a steady performer and kept us on track without selling during the crash of 2008. This fund fits well with our appetite for risk and I don't take that lightly being very close to FIRE. Sure it will lag during bull markets as we are seeing today. However, this fund has held up reasonably well during down markets due to it's 35%ish in bonds. 10 year average annual Return is close to ~9%. Wellington Management Company has a solid track record over many, many years.

 As always YMMV...