Vanguard Wellesley Income Fund (VWINX) has lately emerged as one of the most highly rated mutual funds in the market. There are several factors that have made this income fund a highly attractive alternative for the investors. Are you thinking about putting your hard-earned money at Vanguard Wellesley too? Here are 10 facts that you might want to know about.
1. An experienced fund
With 43 years of operation in the field, Vanguard Wellesley is considered to be one of most experienced players in the field of income funds. In spite of several crises and economic downturns Vanguard Wellesley has managed to weather the storm and continue giving attractive returns to its investors. The net asset of the income fund is valued to be around 11 billion dollars.
2. 10% annual returns since inception
Vanguard Wellesley is considered to be a stable and secure income fund when compared to several other income funds in the market. The interesting fact is that it has been able to give an average annualized return of 10% since its inception in 1970.
3. High dividend reinvestment since the last 5 years
Vanguard Wellesley has been able to attain a dividend reinvestment of 35% over the period of the last 5 years. On average, other companies in the S & P index have been able to attain only 6% of dividend reinvestment. This fact reflects the high consumer confidence in Vanguard Wellesley.
4. 96% total returns in a decade
If the statistics of the last 10 years are to be considered, then it would be amazing to know that Vanguard Wellesley has managed to give a total of 96% of returns.
5. A good composition
Vanguard Wellesley has an investment of 35%-40% in stocks with good dividend rates, while 60% to 65% have been invested in bonds. Thus, it can be considered that the investment composition doesn’t allow Vanguard Wellesley to deviate too much.
6. Medium overall rank
Considering the risk adjusted performance and relative growth in fund returns based on the Value Line Overall Rank system, Vanguard Wellesley scores 3 out of 5, which puts in the median rank among others.
7. Diversified stock portfolio
In general, Vanguard Wellesley isn’t considered to be managed with aggressive tactics. Of late however, analysts have pointed out the flexibility applied by the managers to diversify investments across different sectors.
8. Low investment in real estate
The investment of Vanguard Wellesley in real estate nearly touches the 0% mark. Perhaps, this may be one of the major reasons why Vanguard Wellesley has been able to weather the hard economic situation and show constant growth.
9. Big investment in corporate bonds
Nearly 65% of Vanguard Wellesley’s portfolio weight are in corporate bonds offered by different corporations across varied sector.
10. USA centered investments
80% of investments from Vanguard Wellesley are made in the USA. UK gets around 7% of the total investments.
Are you ready to invest in Vanguard Wellesley now?