Replacement for Vanguard Windsor II

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
water2357
Posts: 654
Joined: Sat Sep 12, 2020 9:24 am

Replacement for Vanguard Windsor II

Post by water2357 »

Anyone have any observations about Vanguard Windsor II? It's been around a long time with a lot of ups and downs. What other Vanguard possibly value fund, with possibly more of a focus on dividend income, would do a better job of possibly less volatility/more income? Or is Windsor II actually doing better relative to other similar funds in the last few years?

Also any thoughts on Vanguard Wellington vs Vanguard Wellesly? Is it worthwhile owning both?
User avatar
Go Blue 99
Posts: 1118
Joined: Thu Oct 09, 2008 3:42 pm

Re: Replacement for Vanguard Windsor II

Post by Go Blue 99 »

Following.
User avatar
Metsfan91
Posts: 971
Joined: Sat Jan 11, 2020 11:33 am
Location: Rust Belt

Re: Replacement for Vanguard Windsor II

Post by Metsfan91 »

water2357 wrote: Sat Apr 17, 2021 5:46 am Also any thoughts on Vanguard Wellington vs Vanguard Wellesly? Is it worthwhile owning both?
Both Wellington fund and Wellesley income fund are managed by Wellington Management company. Both funds hold about the same number of stocks and bonds. Wellington holds more of stocks (60%) and less of bonds (40%). Wellesley holds less of stocks (40%) and more of bonds (60%). If you hold equal amount of both, you'll be holding 50/50 stock bond.

I had Wellesley fund for emergency fund. Then I switched to Wellington fund. I don't think I'll ever hold both of these funds at the same time.

I am not able to chime in on Windsor II as I am not well versed in it.
"Know what you own, and know why you own it." — Peter Lynch
User avatar
HanSolo
Posts: 2283
Joined: Thu Jul 19, 2012 3:18 am

Re: Replacement for Vanguard Windsor II

Post by HanSolo »

water2357 wrote: Sat Apr 17, 2021 5:46 am Anyone have any observations about Vanguard Windsor II? It's been around a long time with a lot of ups and downs. What other Vanguard possibly value fund, with possibly more of a focus on dividend income, would do a better job of possibly less volatility/more income? Or is Windsor II actually doing better relative to other similar funds in the last few years?
On that last question, looks like "yes". You can look at the list of all Vanguard funds and compare. Just a quick look, seems like Windsor II was the best performer in the US Large-Cap Value space (including both active and indexed), for the past 1-year, 5-years and 10-years, but not by a whole lot. All funds in that space look to me like they have similar returns and volatility.

Regarding "more of a focus on dividend income", for active, that would be Vanguard Equity Income (VEIPX/VEIRX), and for indexed, that would be Vanguard High Dividend Yield (VHYAX).
Also any thoughts on Vanguard Wellington vs Vanguard Wellesly? Is it worthwhile owning both?
Some people do, including myself (in my IRA). You mentioned "less volatility", these funds accomplish that. Looks to me like Wellington is sort of like a balanced version of Windsor II (less dividend-focused, more "big tech" holdings), while Wellesley is sort of like a balanced version of Equity Income (more dividend-focused, less "big tech" holdings). Note that Equity Income is also partly managed by Wellington Management (the company that manages both Wellington and Wellesley funds).
Strategic Macro Senior (top 1%, 2019 Bogleheads Contest)
User avatar
Kenkat
Posts: 9539
Joined: Thu Mar 01, 2007 10:18 am
Location: Cincinnati, OH

Re: Replacement for Vanguard Windsor II

Post by Kenkat »

Vanguard Value Index would be the closest index equivalent.

I held Windsor II for quite a long time starting in 1998. It is a good value fund overall, with relatively low expenses and low turnover. I did swap it out for Value Index a number of years ago as I no longer saw any reason to hold it over the lower cost index fund.
Topic Author
water2357
Posts: 654
Joined: Sat Sep 12, 2020 9:24 am

Re: Replacement for Vanguard Windsor II

Post by water2357 »

Thanks for everyone's thoughts on these funds. I've been trying to re-evaluate some long held Vanguard funds.
Post Reply