Vanguard to add Global Wellington and Global Wellesley Income Funds

[flintnational]

It looks like Vanguard is opening Global Wellington and Global Wellesley funds. Apparently we will need a European Unclemick to say, "Pssst Global Wellesley".
Article Link

Will you consider using these funds? I have an international allocation but no international bonds. I may take a look when the funds are available.

"VALLEY FORGE, PA (July 26, 2017)—Vanguard, a pioneer and leader in balanced fund investing, today announced plans to add two actively managed global balanced funds to its lineup. Vanguard has selected Wellington Management Company LLP (WMC) to serve as the investment advisor to the new funds: Global Wellington Fund and Global Wellesley Income Fund."

FN

 

[MichaelB]

I think that s great news and I'll be considering those funds for sure. Thanks for the post!

 

[REWahoo]

From the linked article:

Global Wellington Fund will offer Investor Shares with an estimated expense ratio of 0.45%, and Admiral Shares with an estimated expense ratio of 0.35%. Global Wellesley Income Fund will offer Investor Shares with an estimated expense ratio of 0.42%, and Admiral Shares with an estimated expense ratio of 0.32%.

Those expense ratios are more than double the current Admiral Wellington (0.16%) and Admiral Wellesley (0.15%) expense ratios. Since the new global funds will have to overcome those added costs I think I'm going to resist making any changes and continue to dance with the girl who brung me.

 

[flintnational]

From the linked article:



Those expense ratios are more than double the current Admiral Wellington (0.16%) and Admiral Wellesley (0.15%) expense ratios. Since the new global funds will have to overcome those added costs I think I'm going to resist making any changes and continue to dance with the girl who brung me.

I wonder if the international bonds are driving the higher fees. But, I agree. The added fees are a hurdle to overcome.

FN

 

[MooreBonds]

It looks like Vanguard is opening Global Wellington and Global Wellesley funds. Apparently we will need a European Unclemick to say, "Pssst Global Wellesley".

No, he just needs to say it in a "global"/European (i.e. non-American English) accent.

 

[pb4uski]

I wonder if the international bonds are driving the higher fees. But, I agree. The added fees are a hurdle to overcome.

FN

I don't think that the international stocks or bonds are driving the higher fees. Total International Stock Index and Total International Bond Index funds have ERs of 0.11% and 0.12%, respectively (Admiral shares).

I agree with others that the ERs seem too steep... I'll probably stick with the index funds due to tax efficiency but if I do tred into the balanced funds I'll use the traditional flavors and skip the high cost "global" versions.

 

[mathjak107]

it depends on performance . i will gladly pay the fees for a managed fund like fidelity overseas vs just buying something like veu .low fees are great but not if you are giving up performance and typically international and bond funds tend to do better managed .

 

[flintnational]

I agree with others that the ERs seem too steep... I'll probably stick with the index funds due to tax efficiency but if I do tred into the balanced funds I'll use the traditional flavors and skip the high cost "global" versions.

They are pricey. The expense ratio of the investor shares of the new funds puts them in the top 10% of the most expense Vanguard funds and the Admiral shares in the top 20%. The linked list shows 126 Vanguard mutual funds. There are only 9 funds with expense ratios higher than the investor shares of the new funds.

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[MichaelB]

The expense levels are higher than other Vanguard funds, especially Wellington and Wellesley, but still below most other international funds. My guess is .35% for Wellington International Admiral class would be a best in class for actively managed global funds.

My greater concern is tax efficiency, but that's because I have no tax deferred accounts. We still need to see the benchmark and how the fund is set up.

 

[mathjak107]

i agree , how they perform and not the expenses will determine how good they are . my fidelity overseas is at 1.00% or so , veu was .11% yet overseas surpassed it over almost all time frames

 

[target2019]

I want to hear what Bogle says about int'l balanced funds.
The int'l wellington fund would be a viable swap for my vanguard total int'l, in SEP-IRA. It would triple expenses, though, moving from Total International to this new fund.

What is the future for int'l bonds?

 

[Chuckanut]

This raises a new problem for many of us.

Now, when the answer to a question about earning enough income is PSSSTTT....Wellesly, a person will have to ask "Which one? or Both?"
This complicates life.

 

[treypar]

I like the Wellesley fund and may want to the global equvialent. However I don't like the fees.

 

[Lawrence of Suburbia]

Something like 12% of the regular Wellesley is already in international (if you count the big multinationals it owns, along with actual foreign-based companies.)