I have a question - why is there no Wellington and Wellesley ETF ?
I like that thought, however Vanguard Admiral Shares are low ER funds and compare to ETF's except for inter-day liquidity.
I met with someone pedaling a investment in short duration First Deed of Trusts through a managed account. This lead to a review of the current Risk/Reward using a primary allocation of VWIAX and VWELX. I was looking for a little more portfolio diversity, and thought an out of market investment might be one option over a short/intermediate term bond ladder. I am considering reducing the Bond Fund exposure primarily in the high % of VWAIX.
I have a question for all those invested in these two funds;
What do you do to balance your portfolio exposure to solely stocks (Primarily US) and bonds?
I am very glad we invested primarily in these two funds and will maintain a high allocation, but right now we have 85% of our investments in these two funds, with the other 15% in indexed US stocks. The correlation is high, and the risk likely high with no offsetting sector investments. We have quite a bit also invested in rental and commercial property/small business. So I am looking for something other than REITs for balance our bond exposure going forward.
I know very little about Preferreds, PGX is on the radar. Total return bond strategies are interesting, but look too much like market timing to me. As well playing a sector rotation strategy with ETF sectors sounds great but I do not have a crystal ball and it would seem to take a lot of daily momentum monitoring.
What do others do to balance these so called balanced funds? Or not? I get kind of nervous holding so much in only two funds. But historically, they seem OK.....