Vanguard's Wellesley Income fund is incredible

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barefootjan
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Re: Vanguard's Wellesley Income fund is incredible

Post by barefootjan »

Dantes wrote: Tue Oct 27, 2020 4:45 pm
barefootjan wrote: Tue Oct 27, 2020 4:18 pm Oh no. It's been a few weeks since anyone's said how wonderful Wellesley Income is. Has something bad happened? :wink:

I'm just kidding LOL. But I do have a question: is there a fairly reliable/reasonable way to estimate what the upcoming capital gains distributions might be ahead of time - say, 2 to 6 months before the distribution is declared?
Under fees and distributions https://investor.vanguard.com/mutual-fu ... ions/vgyax is shows realized capital gains and losses. As of Sept 30 it is negative 4.67%. Unrealized appreciation is only 2.71% or NAV - (which seems odd) - so a lot would have to happen to generate capital gains this year I would guess.
Thanks, the page you linked to is for VGYAX Wellesley Global but I was able to find the corresponding page for the fund I'm interested in which is VWIAX Wellesley Income https://investor.vanguard.com/mutual-fu ... ions/vwiax

It shows "realized capital gain/loss $1.21" and "unrealized appreciation/depreciation $9.06." So does that mean there will be a capital gain distribution in December, or only that there might be? - I can't remember if mutual funds are required to distribute all realized capital gains, or if they have some flexibility.
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Harry Livermore
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Re: Vanguard's Wellesley Income fund is incredible

Post by Harry Livermore »

tibbitts wrote: Tue Oct 27, 2020 5:16 pm
Harry Livermore wrote: Sun Sep 27, 2020 3:22 pm They are very smart guys and I assume they look at many different metrics when they evaluate companies.
The problem is that every other mutual fund manager is an approximately equally smart guy (or girl.)
True, and I am not necessarily advocating for managed funds over index funds... I own both. I think in the case of Wellesley, the stock-picking side aligns with my own style of seeking quality companies to hold, not necessarily to trade, based on metrics such as sustainable dividends. Just giving them props!
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spdoublebass
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Re: Vanguard's Wellesley Income fund is incredible

Post by spdoublebass »

I'm thinking about to put a small amount of money in this fund. Not my EF, I have that in cash in a savings account. I want the money exposed to stock, but also not part of my overall retirement savings.

When I look the annual returns, it never hit a 10% drop. The other funds I was thinking about are VTINX (Target Retirement Income) and the Life Strategy Fund is 20% stock.

I still feel weird about it being active managed, but I can't argue with the results.
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willthrill81
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Re: Vanguard's Wellesley Income fund is incredible

Post by willthrill81 »

spdoublebass wrote: Tue Oct 27, 2020 7:42 pm I'm thinking about to put a small amount of money in this fund. Not my EF, I have that in cash in a savings account. I want the money exposed to stock, but also not part of my overall retirement savings.
When we still had an EF, we put 2/3 of it in Wellesley, and it worked out great for us.
spdoublebass wrote: Tue Oct 27, 2020 7:42 pmWhen I look the annual returns, it never hit a 10% drop. The other funds I was thinking about are VTINX (Target Retirement Income) and the Life Strategy Fund is 20% stock.
Annual returns obscure a lot of volatility. Wellesley was down closer to -20% during the GFC on a monthly basis.
spdoublebass wrote: Tue Oct 27, 2020 7:42 pmI still feel weird about it being active managed, but I can't argue with the results.
Even Bogle was fine with active management as long as the costs were low. IIRC, he had a 40% of his portfolio in Wellington, the sister fund to Wellesley.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings
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spdoublebass
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Re: Vanguard's Wellesley Income fund is incredible

Post by spdoublebass »

willthrill81 wrote: Tue Oct 27, 2020 7:58 pm
spdoublebass wrote: Tue Oct 27, 2020 7:42 pm I'm thinking about to put a small amount of money in this fund. Not my EF, I have that in cash in a savings account. I want the money exposed to stock, but also not part of my overall retirement savings.
When we still had an EF, we put 2/3 of it in Wellesley, and it worked out great for us.
spdoublebass wrote: Tue Oct 27, 2020 7:42 pmWhen I look the annual returns, it never hit a 10% drop. The other funds I was thinking about are VTINX (Target Retirement Income) and the Life Strategy Fund is 20% stock.
Annual returns obscure a lot of volatility. Wellesley was down closer to -20% during the GFC on a monthly basis.
spdoublebass wrote: Tue Oct 27, 2020 7:42 pmI still feel weird about it being active managed, but I can't argue with the results.
Even Bogle was fine with active management as long as the costs were low. IIRC, he had a 40% of his portfolio in Wellington, the sister fund to Wellesley.
Thanks for the reply.

-2/3’s sounds about right. I was just saying that I do have money for emergencies in I Bonds and Savings accounts.

-I did see that 18% max draw down.

I’ve read many threads here about EF’s. I understand how your overall portfolio can include your EF. I also understand the bucket approach. The thing is when your EF isn’t substantial, I think buckets are easier mentally (for me anyway). My long term goal is to grow everything to the point I can just view it all as one portfolio. For now though I want it separate from my retirement money.

-I had no clue Bogle had that much of his portfolio in the Wellington. Most Interesting.
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