Wellington risk level?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
jasperhobbs
Posts: 22
Joined: Sat Jan 18, 2020 7:41 pm

Wellington risk level?

Post by jasperhobbs » Wed Mar 25, 2020 3:43 pm

I realize this is a very down time with all stocks and bond funds taking a hit but isn't Wellington considered less riskier than a lot of balanced funds?

I am basing this on the core holding and fund philosophy.
Also I think Morningstar has low to moderate risk.

I am hoping when things do stabilize, Wellington should bouce back.

Topic Author
jasperhobbs
Posts: 22
Joined: Sat Jan 18, 2020 7:41 pm

Re: Wellington risk level?

Post by jasperhobbs » Wed Mar 25, 2020 3:44 pm

jasperhobbs wrote:
Wed Mar 25, 2020 3:43 pm
I realize this is a very down time with all stocks and bond funds taking a hit but isn't Wellington considered less riskier than a lot of balanced funds?

I am basing this on the core holdings and fund philosophy.
Also I think Morningstar has low to moderate risk.

I am hoping when things do stabilize, Wellington should bouce back.

jjface
Posts: 2732
Joined: Thu Mar 19, 2015 6:18 pm

Re: Wellington risk level?

Post by jjface » Wed Mar 25, 2020 3:45 pm

Seems about the same as any other 60:40 ish right now. They haven't worked any magic for a while.

HettyGreenIsMyHero
Posts: 16
Joined: Tue Mar 10, 2020 4:00 pm

Re: Wellington risk level?

Post by HettyGreenIsMyHero » Wed Mar 25, 2020 4:20 pm

Vanguard rates the risk potential a 3 out of 5 (5 being riskier). We have been happy with the performance over the past 8 years we have owned it. It was funded with an inheritance from a very risk averse relative, so this seemed an appropriate moderate fund.

rkhusky
Posts: 8684
Joined: Thu Aug 18, 2011 8:09 pm

Re: Wellington risk level?

Post by rkhusky » Wed Mar 25, 2020 5:31 pm

Probably a little more risky than the average 60/40 balanced fund, in that it tilts to value stocks, which don't do as well in bad times, and it holds corporate bonds, which are also more risky than Treasuries or Total Bond (which is 65/35 Treasuries/Corporates).

gunther35
Posts: 5
Joined: Sun Mar 22, 2020 11:25 am

Re: Wellington risk level?

Post by gunther35 » Fri Mar 27, 2020 1:05 pm

rkhusky wrote:
Wed Mar 25, 2020 5:31 pm
Probably a little more risky than the average 60/40 balanced fund, in that it tilts to value stocks, which don't do as well in bad times, and it holds corporate bonds, which are also more risky than Treasuries or Total Bond (which is 65/35 Treasuries/Corporates).
Looking at the last 6 downturns and how value stocks do against growth stocks:

Vanguard Value Index vs Vanguard Growth Index
(YTD) -23.60% vs. -12.36%
2018 - 5.55% vs. - 3.46%
2008 -35.97% vs. -38.32%
2002 -21.91% vs. -23.68%
2001 -11.88% vs. -12.93%
2000 + 6.08% vs -22.21%

rkhusky
Posts: 8684
Joined: Thu Aug 18, 2011 8:09 pm

Re: Wellington risk level?

Post by rkhusky » Fri Mar 27, 2020 1:56 pm

gunther35 wrote:
Fri Mar 27, 2020 1:05 pm
rkhusky wrote:
Wed Mar 25, 2020 5:31 pm
Probably a little more risky than the average 60/40 balanced fund, in that it tilts to value stocks, which don't do as well in bad times, and it holds corporate bonds, which are also more risky than Treasuries or Total Bond (which is 65/35 Treasuries/Corporates).
Looking at the last 6 downturns and how value stocks do against growth stocks:

Vanguard Value Index vs Vanguard Growth Index
(YTD) -23.60% vs. -12.36%
2018 - 5.55% vs. - 3.46%
2008 -35.97% vs. -38.32%
2002 -21.91% vs. -23.68%
2001 -11.88% vs. -12.93%
2000 + 6.08% vs -22.21%
Are those peak to valley of the downturn? Or just the yearly return?

gunther35
Posts: 5
Joined: Sun Mar 22, 2020 11:25 am

Re: Wellington risk level?

Post by gunther35 » Fri Mar 27, 2020 5:41 pm

rkhusky wrote:
Fri Mar 27, 2020 1:56 pm
gunther35 wrote:
Fri Mar 27, 2020 1:05 pm
rkhusky wrote:
Wed Mar 25, 2020 5:31 pm
Probably a little more risky than the average 60/40 balanced fund, in that it tilts to value stocks, which don't do as well in bad times, and it holds corporate bonds, which are also more risky than Treasuries or Total Bond (which is 65/35 Treasuries/Corporates).
Looking at the last 6 downturns and how value stocks do against growth stocks:

Vanguard Value Index vs Vanguard Growth Index
(YTD) -23.60% vs. -12.36%
2018 - 5.55% vs. - 3.46%
2008 -35.97% vs. -38.32%
2002 -21.91% vs. -23.68%
2001 -11.88% vs. -12.93%
2000 + 6.08% vs -22.21%
Are those peak to valley of the downturn? Or just the yearly return?
Those are yearly returns

Post Reply