Vanguard Wellesley

[ducky911]

I have noticed for awhile that VWINX has been at a Morning Star Rating of 4 when it was a long time 5 star.

I have 75% of my ira in this or 25% of my total stock investment(60/40).

Is there a 5 star comparable out there with similar low costs?

 

[pb4uski]

I think the luster has worn off Morningstar ratings so I wouldn't fret about it at all.

 

[OldShooter]

The way the star ratings works is this: Within a category of funds, the 5% with the best historical performance get 5 stars, with the 4,3,2,1 stars distributed according to formulas. Since history has consistently been shown to not be predictive, the stars are arguably meaningless. WSJ did a big study a couple of years ago that confirmed this and they sort of embarrassed M* into admitting the fact where before they were keeping quiet.

The other thing to remember is that a 5-star fund in a poorly-performing category can easily be eclipsed by a lowly 2-star fund in a category that has been outperforming.

More: https://news.morningstar.com/classroom2/course.asp?docId=2943&page=3&CN=COM

 

[W2R]

I don't know anything about these ratings.

However, Wellesley VWIAX is 30% of my portfolio and has been during my 12 years of retirement (so far), as well as during several years just prior to retirement. I am satisfied with Wellesley and not even considering any changes.

 

[deserat]

I have noticed for awhile that VWINX has been at a Morning Star Rating of 4 when it was a long time 5 star.

I have 75% of my ira in this or 25% of my total stock investment(60/40).

Is there a 5 star comparable out there with similar low costs?

I spoke with a fee only advisor a few months ago and asked for an index alternative to WLS that was similar in its AA, etc, but wouldn't necessarily throw off dividends like WLS. He said VG Balanced Index Fund.

I haven't switched from WLS to that index fund yet as it would be a taxable event and I want to do Roth conversions now....but I may move away from WLS as my future income projections keep me in higher brackets.

 

[ls99]

Chasing stars is futile excercise.

 

[NW-Bound]

 

[mrfeh]

I think the luster has worn off Morningstar ratings so I wouldn't fret about it at all.

+1

M* ratings mean almost nothing.

 

[homestead]

Just looked Wellesley is still rated at 5* on morningstar.

If you want a higher return look at VTMFX and Wellington.

 

[target2019]

More important than the star ratings are what's inside a fund. https://www.morningstar.com/funds/xnas/vwinx/quote

The fund provides income, so it is skewed to large cap value and has sensitivity to interest rates. The turnover is 53%.

Vanguard Balanced Index Fund Admiral Shares (VBIAX) has a 60/40 allocation which is the opposite of Vanguard Wellesley Income (VWIAX).

We hold VWIAX in tax-deferred and tax-free accounts only.

 

[ducky911]

Just looked Wellesley is still rated at 5* on morningstar.

If you want a higher return look at VTMFX and Wellington.

I see admiral shares are 5 star. Regular are 4 star.
I own it in my Schwab account so no admiral available.


Thanks for all the responses. I am staying put.

 

[Midpack]

I don't know anything about these ratings.

However, Wellesley VWIAX is 30% of my portfolio and has been during my 12 years of retirement (so far), as well as during several years just prior to retirement. I am satisfied with Wellesley and not even considering any changes.

I don’t have any Wellesley, but if was starting over again I’d own a big chunk of it. My portfolio is all Vanguard funds, but it doesn’t make sense to take the tax hit(s) to switch to Wellesley. I’d stick with Wellesley OP…

 

[FloridaJim57]

My portfolio is 50% Wellesley and 50% Wellington and I am very happy and have no plans to change it.

 

[deserat]

More important than the star ratings are what's inside a fund. https://www.morningstar.com/funds/xnas/vwinx/quote

The fund provides income, so it is skewed to large cap value and has sensitivity to interest rates. The turnover is 53%.

Vanguard Balanced Index Fund Admiral Shares (VBIAX) has a 60/40 allocation which is the opposite of Vanguard Wellesley Income (VWIAX).

We hold VWIAX in tax-deferred and tax-free accounts only.

Good catch - I thought that Wellesley was 60/40 and Wellington was 40/60 - looks like it's switched. That's OK - I'm at my overall AA across my portfolio. -

To the OP - if you go over to Bogleheads you will see a lot of discussion about WLS...it is an active fund, not an index. If you are looking for a more passive fund, you can find something with a similar AA as WLS. The discussions on Bogleheads are about what is the 'secret sauce' that the managers of WLS have for their fairly consistent decent performance....

 

[Ncc1701]

I see admiral shares are 5 star. Regular are 4 star.
I own it in my Schwab account so no admiral available.


Thanks for all the responses. I am staying put.

VWIAX can be held at Schwab so you can transfer it there without a fee...just can't add to it.

VTMFX can be purchased and held at Schwab. Fee applies unless you have a fee waiver on the account.

The only "equivalent" to Wellesley that has low expenses is AOK.