Wellington & Wellesley

[ats5g]

I know that some people like Wellington + Wellesley. I thought I'd offer the analysis from this M* conversation. From my analysis, it looks like the majority of their return can be replicated by a large value index + a bond fund [long term corp pre 2000, int term post 2000], and that Wellington's management really didn't add any alpha.

Thoughts?

- Alec

 

[wildcat]

Agree, can be replicated.  Cheaper too assuming both are index funds.  Your role would be to rebalance so it fits the 60/40 or 40/60 allocation.

Edit - You would want to make sure the duration of your selected bond fund matched than of your target as well. Shouldn't be difficult either.

 

[uncledrz]

The basic portfolio allocation can be duplicated. Nonetheless, we have held both for quite a long time.

Advantages: Both have held to their stratagies over a long time in up and down markets. Both have a long history. Both have long term, in place, management.

I do not, and would not, use these two funds exclusively, but as two bricks in a well balanced portfolio, I think they do fit the bill and at a relatively low cost.

Uncledrz

 

[unclemick]

Obviously - the idiots at Morningstar have never contacted the Norwegian widow for the straight skinny. The real question is: what would have been the dividend income (interest too) stream for a real life retiree over the periods of interest - versus the alternative availible index funds - bty - screw volitility and performance.

I will mellow as soon I finish my first cup of coffee this morning.

The answer is not as important as the question - ie why do you ask The question may seem the same - but who are you - early in the savings phase/already retired?, what is your strategy?, etc. etc.

If you can get a real feel for each funds performance relative to 'your' ER plan - then you are ahead of the game.

Heh heh heh - at 12 yrs into ER - me and the wider woman are looking for dividends baby - dividends.

 

[BigMoneyJim]

From my analysis, it looks like the majority of their return can be replicated by a large value index + a bond fund [long term corp pre 2000, int term post 2000], and that Wellington's management really didn't add any alpha.

I went from mix-my-own Index 500 / Total Bond to Wellington because I view it as very similar with built-in rebalancing. LS Moderate Growth isn't available in my 401(k) or I might've gone with it instead as I did in my IRA. (disclosure: also threw in some extra int'l index & total bond index and some REIT index for balance & diversification.)

 

[Howard]

geez, I thought this was a discussion on great British Militarists or Toronto Street Names.

 

[SLC Tortfeasor]

Heh heh heh - at 12 yrs into ER - me and the wider woman are looking for dividends baby - dividends. 

Did you really mean to call her the "wider woman"?

 

[brewer12345]

Did you really mean to call her the "wider woman"?

I assumed he meant it as "widder woman" i.e. widow woman.

 

[justin]

I think the wider the better as far as the Norwegian widow is concerned. As long as she can fit in the mailbox each month...

 

[brewer12345]

Obviously - the idiots at Morningstar have never contacted the Norwegian widow for the straight skinny. The real question is: what would have been the dividend income (interest too) stream for a real life retiree over the periods of interest - versus the alternative availible index funds - bty - screw volitility and performance.

I will mellow as soon I finish my first cup of coffee this morning.

The answer is not as important as the question - ie why do you ask The question may seem the same - but who are you - early in the savings phase/already retired?, what is your strategy?, etc. etc.

If you can get a real feel for each funds performance relative to 'your' ER plan - then you are ahead of the game.

Heh heh heh - at 12 yrs into ER - me and the wider woman are looking for dividends baby - dividends.

BTW, UM, I don't know if you are winding down the putzing portfolio or not, but if you want a couple of ideas for yield:EGLE & STON.