Thoughts on Vanguard Global Wellington?

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m@ver1ck
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Thoughts on Vanguard Global Wellington?

Post by m@ver1ck » Sat May 23, 2020 2:29 pm

I'm not super comfortable with Vanguard Global Indexed funds (VTIAX). Mostly because I'm not convinced that global markets are fair/priced adequately/not with a large portions of fraudulent stocks.
I remember growing up in India - and just reading reports of a bunch of companies that would list themselves on the stock market - rake in money and then promptly disappear. Mining companies and the like where said mines didn't even exist. Not sure how much of that is still going on specially in China now and other developing countries.

Otoh, current US conditions lead me to believe that global diversification is necessary. Not necessarily for best growth but to minimize risk of failure.

So - with that mental model - what do folks think of global Wellington and Global Wellesley?

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abuss368
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Re: Thoughts on Vanguard Global Wellington?

Post by abuss368 » Sat May 23, 2020 2:33 pm

m@ver1ck wrote:
Sat May 23, 2020 2:29 pm
I'm not super comfortable with Vanguard Global Indexed funds (VTIAX). Mostly because I'm not convinced that global markets are fair/priced adequately/not with a large portions of fraudulent stocks.
I remember growing up in India - and just reading reports of a bunch of companies that would list themselves on the stock market - rake in money and then promptly disappear. Mining companies and the like where said mines didn't even exist. Not sure how much of that is still going on specially in China now and other developing countries.

Otoh, current US conditions lead me to believe that global diversification is necessary. Not necessarily for best growth but to minimize risk of failure.

So - with that mental model - what do folks think of global Wellington and Global Wellesley?
Wouldn't touch it. I would own Wellington instead!

Had a relative would owned Wellington and has done very well with this one fund.
John C. Bogle: Two Fund Portfolio - Total Stock & Total Bond - “Simplicity is the master key to financial success."

Topic Author
m@ver1ck
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Re: Thoughts on Vanguard Global Wellington?

Post by m@ver1ck » Sat May 23, 2020 2:36 pm

I also have Wellington. I have about 100K in each - Wellington and Global Wellington. Why would you not get Global Wellington if you wanted global exposure?

nix4me
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Re: Thoughts on Vanguard Global Wellington?

Post by nix4me » Sat May 23, 2020 2:38 pm

Wouldn’t touch it because it invests in China.

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m@ver1ck
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Re: Thoughts on Vanguard Global Wellington?

Post by m@ver1ck » Sat May 23, 2020 2:41 pm

Lol! My reason to get away from VTIAX too.

nix4me
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Re: Thoughts on Vanguard Global Wellington?

Post by nix4me » Sat May 23, 2020 2:43 pm

m@ver1ck wrote:
Sat May 23, 2020 2:41 pm
Lol! My reason to get away from VTIAX too.
Agreed. I believe in the US. Just like Buffet.

dru808
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Re: Thoughts on Vanguard Global Wellington?

Post by dru808 » Sat May 23, 2020 2:45 pm

Ch, ch-ay-na.
60% US equity | 25% International equity | 15% US Treasury bonds

theorist
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Re: Thoughts on Vanguard Global Wellington?

Post by theorist » Sat May 23, 2020 2:50 pm

Global Wellington seems like an excellent choice. I have eyed it myself, but haven’t gone in yet. I did buy in to the Vanguard International Core Stock Fund (though most of my international holding is via VTIAX, the index). This actively managed fund is run by Wellington management as well, but is 100% equity and international (as opposed to Global Wellington, which is 65/35 equity/bonds and has domestic equity as well as international). It is too early to say how international core stock will perform, but I have a lot of respect for Wellington management. You might consider this as well.

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Re: Thoughts on Vanguard Global Wellington?

Post by theorist » Sat May 23, 2020 2:51 pm

m@ver1ck wrote:
Sat May 23, 2020 2:29 pm
I'm not super comfortable with Vanguard Global Indexed funds (VTIAX). Mostly because I'm not convinced that global markets are fair/priced adequately/not with a large portions of fraudulent stocks.
I remember growing up in India - and just reading reports of a bunch of companies that would list themselves on the stock market - rake in money and then promptly disappear. Mining companies and the like where said mines didn't even exist. Not sure how much of that is still going on specially in China now and other developing countries.

Otoh, current US conditions lead me to believe that global diversification is necessary. Not necessarily for best growth but to minimize risk of failure.

So - with that mental model - what do folks think of global Wellington and Global Wellesley?
PS regarding your mining comment:

“A mine is a hole in the ground with a liar standing next to it.” — Mark Twain

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Christine_NM
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Re: Thoughts on Vanguard Global Wellington?

Post by Christine_NM » Sat May 23, 2020 2:59 pm

nix4me wrote:
Sat May 23, 2020 2:38 pm
Wouldn’t touch it because it invests in China.
Can't find any Chinese holdings. One Taiwan, one HK. Where do you see China?
18% cash 44% stock 38% bond. Retired, w/d rate 2.5%

nix4me
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Re: Thoughts on Vanguard Global Wellington?

Post by nix4me » Sat May 23, 2020 3:01 pm

Emerging markets is listed. Usually means China.

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Christine_NM
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Re: Thoughts on Vanguard Global Wellington?

Post by Christine_NM » Sat May 23, 2020 3:07 pm

nix4me wrote:
Sat May 23, 2020 3:01 pm
Emerging markets is listed. Usually means China.
Usually, in international index funds. Looking at the VGWAX stock holdings, all 84 of them, I can't find anything controlled by the Chinese gov. I don't know all of them but certainly there is an insignificant amount, possibly zero, compared to VTIAX.
18% cash 44% stock 38% bond. Retired, w/d rate 2.5%

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Gort
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Re: Thoughts on Vanguard Global Wellington?

Post by Gort » Sat May 23, 2020 3:32 pm

m@ver1ck wrote:
Sat May 23, 2020 2:29 pm
I'm not super comfortable with Vanguard Global Indexed funds (VTIAX). Mostly because I'm not convinced that global markets are fair/priced adequately/not with a large portions of fraudulent stocks.
I remember growing up in India - and just reading reports of a bunch of companies that would list themselves on the stock market - rake in money and then promptly disappear. Mining companies and the like where said mines didn't even exist. Not sure how much of that is still going on specially in China now and other developing countries.

Otoh, current US conditions lead me to believe that global diversification is necessary. Not necessarily for best growth but to minimize risk of failure.

So - with that mental model - what do folks think of global Wellington and Global Wellesley?
VTIAX is not a global fund, it is an international index fund with no US companies. A global fund contains both US and international stocks such as Vanguard's Total World Stock Index fund (VTWAX).

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