Vanguard Global Wellesley

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sawhorse
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Joined: Sun Mar 01, 2015 7:05 pm

Vanguard Global Wellesley

Post by sawhorse » Wed Dec 05, 2018 10:22 pm

I'm a big fan of regular Vanguard Wellesley, so I l'm very interested in the newish Vanguard Global Wellesley fund. Is the Wellesley name merely a branding thing, or is it fundamentally similar to regular Wellesley? Is it a good way to get international exposure for people who are substantially invested in regularly Wellesley? The expense ratio is much higher than regular Wellesley.

Thoughts on Global Wellington are also much appreciated.

minesweep
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Location: PA

Re: Vanguard Global Wellesley

Post by minesweep » Wed Dec 05, 2018 10:43 pm

Deleted. Misread the posting. I shouldn't be posting late at night.

sawhorse
Posts: 3148
Joined: Sun Mar 01, 2015 7:05 pm

Re: Vanguard Global Wellesley

Post by sawhorse » Thu Dec 06, 2018 5:58 pm

Bump. Nobody knows about Global Wellesley?

samsdad
Posts: 217
Joined: Sat Jan 02, 2016 6:20 pm

Re: Vanguard Global Wellesley

Post by samsdad » Thu Dec 06, 2018 6:30 pm

sawhorse wrote:
Thu Dec 06, 2018 5:58 pm
Bump. Nobody knows about Global Wellesley?
I don’t, sorry. Bumping this for you.

Snowjob
Posts: 1526
Joined: Sun Jun 28, 2009 10:53 pm

Re: Vanguard Global Wellesley

Post by Snowjob » Thu Dec 06, 2018 7:28 pm

sawhorse wrote:
Wed Dec 05, 2018 10:22 pm
I'm a big fan of regular Vanguard Wellesley, so I l'm very interested in the newish Vanguard Global Wellesley fund. Is the Wellesley name merely a branding thing, or is it fundamentally similar to regular Wellesley? Is it a good way to get international exposure for people who are substantially invested in regularly Wellesley? The expense ratio is much higher than regular Wellesley.

Thoughts on Global Wellington are also much appreciated.
I believe global wellington and global wellsley follow the same playbook as their domestic heavy counterparts. the original funds I think are limited to how much international they can hold and typically are in the 10% range. these new ones seem balanced closer to the world market cap like 50/50

grog
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Re: Vanguard Global Wellesley

Post by grog » Thu Dec 06, 2018 10:25 pm

It's managed by the Wellington Management Company. And at a glance it definitely follows the style of classic Wellesley. It's income focused and the asset allocation is around 40/60 with a large cap value strategy. For the international exposure, looks like they are sticking to wealthy industrialized counties, mostly Europe.

Fund assets are only $460 M (compared to $50 billion for Wellesley). It's only about a year old. The ER will probably drop some as the assets increase. Fortunately it doesn't have any purchase or redemption fees.

steve r
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Joined: Mon Feb 13, 2012 8:34 pm

Re: Vanguard Global Wellesley

Post by steve r » Sun Dec 09, 2018 9:26 am

I am in it ... Global Wellesley

I had been watching (non-global) Wellesley for some time (years), with plan to move into it at a time when I needed to go small, conservative due to age. I was overdue, but earlier this year I got spooked and moved half my Roth money which was 100% equities. (VMNVX). To be honest, yes it was age and the realization that I no longer need to be as aggressive, but it was also part market timing that has thus far worked out. A rare feat for me.

I read the summary prospectus, saw the same management team and philosophy, saw the metrics on U.S. stocks overvalued relative to global, and went global despite the higher expense ratio and the fact that the global bond portion yields closer to zero. It also matched the global weighting of the money I was using to purchase Global Wellesley. I did not overthink it.

I also intended to study the issue in more detail when time allowed. Thus I found this thread. The thing is, I can see how Global has under-performed, but looking at that would definitely be recency bias. I can also see how international has under performed for decades now. I also have strong belief in global diversification and think value is more likely to be found globally.

No decision is made yet, and none will be made this week. But my current thinking is mixed. Since the other half of my Roth is Global equities only, I may not need "Global" Wellesley. OTOH, my non-Roth assets are about 20% foreign, with some foreign bonds, and more conservative overall.

I some ways, this relates to a long list of threads on what the proper percentage is to be in global. The answer seems to be somewhere between 20 percent and 50 percent (market cap). Keeping things in the middle, say a global percentage in the 30's for my overall portfolio suggest to I keep the status quo.

As for others, I think the question is how much do you want in global markets, and how of your other assets are global?

Thoughts welcome.
Maximize Diversification - Minimize Costs - Avoid Lotteries

bearcub
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Location: Twilight Zone

Re: Vanguard Global Wellesley

Post by bearcub » Sun Dec 09, 2018 10:39 am

I have Global Wellesley in my ROTH IRA since the start of the year. It is down 3.37 I believe for the year. I do not plan on touching it for many years. It fits with my AA. I have a lot of international stock. That"s just me. Best wishes on your choices.

steve r
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Re: Vanguard Global Wellesley

Post by steve r » Sun Dec 09, 2018 11:25 am

In addition to consider what percent of foreign equity, one must consider what percent foreign bond.

The fund has over 25 percent foreign bonds that earn little. The main play here is more currency related (currency risk).

In contrast, Wellesley is half that in foreign bonds.

You must also consider that Wellesley has a modest global equity holding. Global Wellesley is 20% foreign stock, and Wellesley is 6%.
Maximize Diversification - Minimize Costs - Avoid Lotteries

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