VWELX or VWINX? [Vanguard Wellington or Wellesley Income]

[cegibbs]

If given the choice on how to achieve a 50%/50% equity/bond portfolio which would you select: VWELX plus a bond fund of your choice or VWINX and an equity fund of your choice? I do not want to hold both VWELX and VWINX so I am trying to decide which of the aforementioned two options to use.

[lack_ey]

Okay, I recognize those as ticker symbols for Vanguard Wellesley Income and Vanguard Wellington, two actively managed (at low expense ratios) balanced funds, but some will not.

Given that specific constraint I would use Wellesley Income to have more flexibility in including stocks, such as including more international stocks. It's heavily focused in mega caps, especially from the US, with a bias to value and dividend payers, among other things. Where it goes outside the US, it's largely European and Canadian multinationals.

[DarkHelmetII]

While no specific criticism of lack_ey's suggestion, conversely could consider Wellington and then make that extra 10% in bonds long-term bonds.

Just another perspective, am sure some here will be critical of long-term bonds which I understand.

[highercall]

You didn't state why those two funds however if 50/50, why not use total stock market and total bond fund?

[JoMoney]

It's a shame you're not willing to own both. Since both funds seem to appeal to you, and you desire a 50/50 allocation, since VWELX is a 65/35 fund, and VWINX is a 35/65 fund, it seems like a natural fit to own a split of the two which will get you to 50/50 and a mixture of the two funds that (for whatever reason) you seem to be drawn to, and will keep itself balanced around your desired allocation.

... I'm not sure why you're asking others to help you make up your mind, but if it were me, not that I would desire to use active funds, but I would choose VWELX and then add some cash and short-term bonds to get the allocation down to 50/50.

[Earl Lemongrab]

I wouldn't use either. About 40% of my portfolio is in taxable. Neither of those is appropriate there. I would hold appropriate index funds in the various containers.

[dbr]

I would and do hold neither. The alternate choice would be hold both, but not in taxable accounts.

[jayoco]

If you are concerned about current valuations via price to book or price to sales on the equity side I would opt for Wellington.

Wellington's price sales remains firmly under 2x. The equity holdings in the Wellesly portfolio are closing in on 2.5X price to sales.