Comments on: Using Vanguard Wellesley Income Fund (VWINX) As A Bond Proxy?

By: Matt

Matt — Sun, 22 Apr 2012 03:22:58 +0000

John — My guess is that people are suggesting that you include a fund with equity exposure in your ‘bond allocation’ because IG bond yields are just so damn low in this market. That said, the overall asset allocation should be adjusted rather than just allowing your bond allocation to invest in equities. Meaning…rather than incorrectly considering this fund to be exclusively part of your fixed income allocation, your advisor should be explaining that your overall fixed income / equity allocation needs to be adjusted because our current low interest rate environment really prevents most fixed income instruments from yielding you anything meaningful. For example, change your overall bond/equity allocation from 60/40 to 40/60 and when adding this to your portfolio, consider the bond component part of your bond allocation and the equity component part of your equity allocation.

By: Jerry Gallagher

Jerry Gallagher — Mon, 26 Mar 2012 14:37:34 +0000

My wife and I have about 35% of our portfolio invested in this fund; all other funds are in various Vanguard funds. As our ‘CIO’, I love the Vanguard rep and also their stable performance. (wife thinks I’m doing a great job!) Over the years,this ‘safe’ investment has proven again and again to be quite the performer. Turtles and hares anyone? Your article is very informative except the part of not pulling the trigger-as you wait, we’re compounding.

By: Bennet Cecil

Bennet Cecil — Sat, 17 Sep 2011 04:29:15 +0000

Wellesley is the core with ten percent yearly returns since 1970. It recovered quickly from the recent financial meltdown and lets you sleep at night. Cash in your CDs and empty your savings account. Put it into this fund and watch it grow.

By: John

John — Sat, 08 Jan 2011 16:24:32 +0000

I was advised to buy van. Wellesley income fund for my fixed portion of my portfolio.How can this be,if it has equities in the fund?

By: Lynn

Lynn — Wed, 16 Jun 2010 14:03:16 +0000

I have admiral shares of Wellesley. I think it is one of their best funds by far.

By: Anonymous

Anonymous — Wed, 23 Dec 2009 03:24:27 +0000

I am considering loading up on shares of Wellesley. It outperforms most Target Retirement plans.

By: Anonymous

Anonymous — Tue, 29 Sep 2009 17:34:48 +0000

40% stock holdings is not a proxy for a bond fund period. Wellesey Income is a great balanced fund – but not a bond fund. Also currently Wellesey bond portfolio has higher maturity than average (compared to vanguard total bond), so its exposed to interest rate risk to a greater level. There is no free lunch.

By: ABCs of Investing

ABCs of Investing — Thu, 28 May 2009 15:47:59 +0000

Thanks for the mention.