100.0% | VWENX | Vanguard Mutual Funds | Wellington Admiral Shares |
99.9% | SCHV | Schwab | Large-Cap Value |
99.9% | VGSTX | Vanguard Mutual Funds | STAR |
99.8% | VOO | Vanguard | S&P 500 |
99.8% | SCHX | Schwab | Large-Cap Core |
99.8% | SCHB | Schwab | Multi-Cap Core |
99.7% | IWL | iShares | Russell Top 200 ETF |
99.7% | EUSA | iShares | MSCI USA ETF |
99.7% | AOR | iShares | Growth Allocation ETF |
99.7% | VBIAX | Vanguard Mutual Funds | Balanced Index Admiral Shares |
99.6% | VTXVX | Vanguard Mutual Funds | Target Retirement 2015 |
99.6% | SCHD | Schwab | Equity Income |
99.6% | IWX | iShares | Russell Top 200 Value ETF |
99.6% | VWINX | Vanguard Mutual Funds | Wellesley Income |
99.6% | VMVAX | Vanguard Mutual Funds | Mid-Cap Value Index Admiral |
99.5% | AOA | iShares | Aggressive Allocation ETF |
99.5% | VIG | Vanguard | Dividend Appreciation |
99.4% | VTMFX | Vanguard Mutual Funds | Tax-Managed Balanced Admiral Shares |
99.4% | MGK | Vanguard | Mega Cap Growth |
99.4% | AOM | iShares | Moderate Allocation ETF |
99.4% | FSCKX | Fidelity | Spartan Mid-Cap Index Fund - Fidelity Advantage Class |
99.4% | MDY | SPDR | S&P MIDCAP 400 |
99.4% | VTWNX | Vanguard Mutual Funds | Target Retirement 2020 |
99.4% | FSCLX | Fidelity | Spartan Mid-Cap Index Fund - Investor Class |
99.3% | MMTM | SPDR | S&P 1500 Momentum Tilt |
99.3% | MDYG | SPDR | S&P 400 Mid Cap Growth |
99.3% | VCVSX | Vanguard Mutual Funds | Convertible Securities |
99.3% | MGC | Vanguard | Mega Cap |
99.3% | KXI | iShares | Global Consumer Staples ETF |
99.3% | PWV | PowerShares | Dynamic Large Cap Value Portfolio |
Senator,You could always go to one of these highly correlated ETFs....
Once of which is VOO, which is just the S&P. It is a 99.8% correlated ETF. From what I can see, there is no magic that Wellington has.
+1Wellington and the Vanguard S&P 500 can be expected to vary a lot in their performance when stocks take a hit. For example, from June 2008 through Mar 2009, the S&P fund took a 46% loss, while Wellington had a 31% loss. Even if the performance of the funds were closely corellated most of the time, the difference in their performance during periods such as this would be important to many investors.
Wellington is the biggest reason I put up with Vanguard's quirks and marginal customer service.
Is that just end-to-end, or also during stock calamities (Oct 1987, 2008) and bond market woes (1969, 1994)?Since 1985, a 66% VTI and 34% BND portfolio has been a pretty much dead ringer for the performance of Wellesley according to the backtest link posted in the thread that Senator brought up.
Is that just end-to-end, or also during stock calamities (Oct 1987, 2008) and bond market woes (1969, 1994)?
# | Initial Balance | Final Balance | CAGR | Std.Dev. | Best Year | Worst Year | Max. Drawdown | Sharpe Ratio | Sortino Ratio | US Mkt Correlation |
1 | $10,000 | $17,827 | 6.70% | 10.82% | 21.36% | -22.07% | -31.89% | 0.64 | 0.93 | 0.99 |
2 | $10,000 | $17,603 | 6.55% | 10.69% | 22.20% | -22.30% | -31.26% | 0.63 | 0.92 | 0.97 |
The whole time. Portfolio 2 is Wellington, 1 is VTI/BND mix.
https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2016&lastMonth=12&endDate=08%2F13%2F2016&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&showYield=false&reinvestDividends=true&symbol1=VTI&allocation1_1=66&symbol2=BND&allocation2_1=34&symbol3=VWELX&allocation3_2=100
# Initial Balance Final Balance CAGR Std.Dev. Best Year Worst Year Max. Drawdown Sharpe Ratio Sortino Ratio US Mkt Correlation 1 $10,000 $17,827 6.70% 10.82% 21.36% -22.07% -31.89% 0.64 0.93 0.99 2 $10,000 $17,603 6.55% 10.69% 22.20% -22.30% -31.26% 0.63 0.92 0.97
So, we're only looking at that most recent 9 year period, not back to 1985. This misses some fairly important market perturbations (and opportunities for Wellington's active managers to shine--if they truly add value). I think we'd need a bond fund with a longer history in their database than BND has to see that.Note: The time period was automatically adjusted based on the available data (May 2007 - Nov 2016) for the selected asset: Vanguard Total Bond Market ETF (BND)
According to a note on that page:
So, we're only looking at that most recent 9 year period, not back to 1985. This misses some fairly important market perturbations (and opportunities for Wellington's active managers to shine--if they truly add value). I think we'd need a bond fund with a longer history in their database than BND has to see that.
VTI also is a EFT only goes back to 2001 use the mutual fund version VTSMX.BND is a eft use VBMFX. Which is the mutual fund version started Dec. 1986.
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.#
......Initial Balance..Final BalanceCAGR..Std.Dev...Best Year..Worst Year..Max. Drawdown...Sharpe Ratio...Sortino Ratio...US Mkt Correlation
Port 1..$10,000.......$131,412....8.99% 10.18%. 30.90%...... -22.71%.... -34.01%........... 0.59............. 0.86.............. 0.98
Port 2..$10,000.......$158,593....9.68% 10.01%. 32.92%...... -22.30%.... -32.53%........... 0.66............. 0.99.............. 0.90
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 recently opened a solo401k and had to decide how to invest the money. I wanted to keep it simple and just have one fund so went with Vanguard Balanced Index (VBINX) and stopped worrying.