That is a good choice in the upper tax brackets. Wellington would be good in the lower tax brackets.
If it is a solo401 k, does the bracket matter?
That is a good choice in the upper tax brackets. Wellington would be good in the lower tax brackets.
I'm not familiar with the Sortino ratio, but in looking at the correlation per centage, Wellington is only 90% correlated to the US Market. An instant x-ray at Morningstar shows Wellington holdings as 91% in the US and Canada, 5.51% in Europe and other smaller amounts in the rest of the world. So ultimately at least 10% of Wellington is in International companies. Maybe accounting for the lower volatility?Here's a look back to 1987 comparing:
-- "Portfolio 1" : 66% VFINX (Vgd S&P 500)/34% VBMFX (Vgd Total Bond Index) (rebalanced annually)
-- "Portfolio 2" : 100% Wellington
Fairly similar performance, and with the Admiral class shares available today, it's possible that the homebrew index portfolio would have a higher ending balance than the Wellington portfolio. But, that still just takes us back 30 years, which might still miss some dramatic opportunities for Wellington to set itself apart.
Note: The higher Sortino ratio of the Wellington portfolio indicates it had better performance when adjusted for downside volatility compared to Portfolio 1.
I'm probably the only won who didnt know this but I guess Vanguard Wellington is closed to new investors. Anyone have any good alternatives that are similar?
I discovered the same thing at the end of last year and my research, think maybe it was on Bogleheads site, led me to VGSTX.
Returns on VGSTX - YTD (bought about 1/20/16) have been 12.76% and on VWINX are 6.58% (bought 12/15/15)
So far VGSTX seems to be a good complement to VWINX in times like this with bond returns in reverse.
I discovered the same thing at the end of last year and my research, think maybe it was on Bogleheads site, led me to VGSTX.
Returns on VGSTX - YTD (bought about 1/20/16) have been 12.76% and on VWINX are 6.58% (bought 12/15/15)
So far VGSTX seems to be a good complement to VWINX in times like this with bond returns in reverse.
See post 30 of this thread. Wellington is apparently still available to Vanguard clients.
I don't believe this is true if buying through a 3rd party, which would be my preference.
If it is a solo401 k, does the bracket matter?