Wellington Fund Investor Shares (VWELX)

Closed to new investors.

OPTIONS as of
03/27/2018

Options Expense ratio Minimum
Admiral 0.17% N/A
Investor 0.25% N/A

About our options  


 

Fees

A fee charged by some mutual funds when an investor buys shares. This fee is not a sales charge or load because it is paid directly to the fund to offset the costs of trading certain securities.

 None

A fee charged by some mutual funds when an investor sells shares. A redemption fee differs from a back-end load because the money is paid back into the fund. Many funds charge redemption fees only when shares are bought and then sold within a specific period of time, generally in an effort to discourage market-timing and short-term trading. Some brokers also charge their clients redemption fees for the sale of securities.

 None

KEY FACTS

Product type: Moderate Allocation
VWELX
 inception on 07/01/1929
$96.2 billion

This represents the total net assets for all share classes of Vanguard's U.S. funds, as well as any collective trust that shares the same investment strategy, management and holdings.

 as of 12/31/2018
$15.3 billion net assets for
VWELX
 as of 12/31/2018
1,040 holdings as of 12/31/2018
Benchmarked to the Wellington Composite Index
Turnover rate (Fiscal year-end  11/30/2018) 38.40%
CUSIP: 921935102

STYLEBOX

Stock


Portfolio emphasizing large- and mid-capitalization value stocks.



Bond
Portfolio of intermediate-, short-, and long-term government and investment-grade corporate credits. 



Central tendency
Expected range

How to read our stylebox  

Investment approach



  • Balanced asset allocation: 60%–70% stocks, 30%–40% bonds.
  • Seeks long-term capital appreciation and reasonable current income, with moderate risk.
  • Large- and mid-cap value stocks.
  • Intermediate-, short-, and long-term government and investment-grade corporate bonds.
  • Fundamental, risk-controlled investment approach.

Total returns

as of 12/31/2018

View as:

as of 12/31/2018

15%
10
5
0
-5%
 
 
 
 
 
  1 year 3 year 5 year 10 year

07/01/1929

NAV 
– 3.42% 7.14% 6.21% 9.87% 8.19%

Wellington Composite Index

*
– 3.09% 7.00% 6.70% 10.34%

Note: Fee adjusted for mutual funds where applicable.

* 65% S&P 500 Index and 35% Lehman U.S. Long Credit AA or Better Bond Index through February 29, 2000; 65% S&P 500 Index and 35% Bloomberg Barclays U.S. Credit A or Better Bond Index thereafter.

The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so investors' shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited.


People and process

as of 12/31/2018

Firms   % managed  
Wellington Management Company LLP 100%

Product management

Vanguard Wellington™ Fund uses a conservative approach and emphasizes broad diversification to moderate risk in pursuit of three objectives: long-term capital appreciation, reasonable current income, and capital conservation. The stock/bond mix has provided an “all-weather” portfolio with competitive returns in various market cycles.Equity component: Fundamental research identifies high-quality large- and mid-capitalization companies in out-of-favor industries. These stocks typically offer above-average dividend yields, low valuation multiples, and improving fundamentals.Fixed income component: The advisor builds an intermediate-duration portfolio that may include short-, intermediate-, and long-term investment-grade corporate bonds, with some exposure to U.S. Treasury, government agency, and mortgage-backed securities. A top-down strategy ranks industry groups by valuation, liquidity, and economic outlook. Fundamental credit research seeks to identify stable and improving credits with low default risks.

Firm and manager details  

Sector weightings as of 12/31/2018

  Sector  VWELX

Wellington Composite Index

+/- Weight
Financials 21.8% 13.3% 8.5%
Health Care 16.2% 15.6% 0.6%
Information Technology 11.4% 20.1% – 8.7%
Industrials 9.8% 9.2% 0.6%
Communication Services 9.6% 10.1% – 0.5%
Energy 8.5% 5.3% 3.2%
Consumer Staples 6.9% 7.4% – 0.5%
Utilities 5.0% 3.3% 1.7%
Consumer Discretionary 4.4% 10.0% – 5.6%
Materials 3.7% 2.7% 1.0%
Real Estate 2.7% 3.0% – 0.3%
Other 0.0% 0.0% 0.0%
0%
25%
Total 100.0% 100.0%

Sector categories are based on the Global Industry Classification Standard, except for the "Other" category (if applicable), which includes securities that have not been provided a Global Industry Classification Standard as of the effective reporting period.

Distribution by credit quality(% of fund) as of 12/31/2018

  Credit rating  VWELX
U.S. Government 20.0%
Aaa 6.1%
Aa 13.1%
A 40.9%
Baa 19.5%
Ba 0.1%
Cash 0.3%
0%
45%
Total 100.0%
* Credit-quality ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). ”NR” is used to classify securities for which a rating is not available. NR securities may include a fund’s investment in Vanguard Market Liquidity Fund or Vanguard Municipal Cash Management Fund, each of which invests in high-quality money market instruments and may serve as a cash management vehicle for the Vanguard funds, trusts, and accounts. U.S. Treasury, U.S. Agency, and U.S. Agency mortgage-backed securities appear under ”U.S. Government.” Credit-quality ratings for each issue are obtained from Barclays using ratings derived from Moody’s Investors Service (Moody’s), Fitch Ratings (Fitch), and Standard & Poor’s (S&P). When ratings from all three agencies are available, the median rating is used. When ratings are available from two of the agencies, the lower rating is used. When one rating is available, that rating is used.

Top 10 Equity Holdings as of 12/31/2018

Rank Holding
1 Microsoft Corp.
2 Verizon Communications Inc.
3 JPMorgan Chase & Co.
4 Bank of America Corp.
5 Alphabet Inc.
6 Chevron Corp.
7 Comcast Corp.
8 Chubb Ltd.
9 Bristol-Myers Squibb Co.
10 AstraZeneca plc
Top 10 equals: 18.6% of net assets & 28.9% of net equities

Portfolio holdings may exclude any temporary cash investments and equity index products.

Asset allocation as of 12/31/2018

Asset class VWELX
 Stock 65.65%
 Bond 33.90%
 Short-term reserves 0.45%
Total 100.00%

Fundamentals

Balancedas of 12/31/2018 VWELX

Wellington Composite Index

Turnover rate 38.4% Fiscal year end 11/2018 N/A
Short-term reserves 0.58% N/A

Stock

as of 12/31/2018
VWELX

Wellington Composite Index

Number of stock 97
Avg market cap $174.1 billion
Median market cap $101.9 billion
P/E ratio 14.6x
P/B ratio 2.2x
Bond
as of 12/31/2018
VWELX

Wellington Composite Index

Number of bonds 943
Yield to maturity 3.69%
Average duration 6.5 (years)

Average effective maturity (taxable bond funds and balanced funds except Tax-Managed Balanced)
Average Effective Maturity is defined as the average length of time until fixed income securities held by a fund reach maturity and are repaid, taking into consideration that an action such as a call or refunding may cause some bonds to be repaid before they mature.

Average stated maturity (municipal bond funds and Tax-Managed Balanced)
Average stated maturity represents the average of the stated maturity dates for all fixed income securities held by the fund.

Average maturity (money market funds only)
Average maturity represents the weighted average maturity of the fund's holdings using the date of the next interest rate adjustment for certain adjustable-rate securities held by the fund.

9.4 (years)
Average coupon 3.59%

Risk and volatility as of 12/31/2018

  VWELX

Wellington Composite Index

R-squared N/A 0.94
Beta N/A 0.94
Alpha 0.04 N/A
Standard deviation 6.98% 7.21%
Sharpe ratio 0.88 0.83

Risk and volatility are based on the share class with the earliest inception date.

Risk measures are calculated from trailing 36-month fund returns relative to the associated benchmarks.

The fund is subject to several stock and bond market risks, any of which could cause an investor to lose money. However, because stock and bond prices can move in different directions or to different degrees, the fund’s bond and short-term investment holdings may counteract some of the volatility experienced by the fund’s stock holdings. The fund’s performance could be hurt by:

  • Stock market risk: The chance that stock prices overall will decline. Stock markets tend to move in cycles, with periods of rising stock prices and periods of falling stock prices.
  • Investment style risk: The chance that returns from mid- and large-capitalization stocks will trail returns from the overall stock market. Historically, mid-cap stocks have been more volatile in price than the large-cap stocks that dominate the overall market, and they often perform quite differently. Mid-cap stocks tend to have greater volatility than large-cap stocks because, among other things, medium-size companies are more sensitive to changing economic conditions.
  • Interest rate risk: The chance that bond prices will decline because of rising interest rates.
  • Income risk: The chance that the fund’s income will decline because of falling interest rates.
  • Credit risk: The chance that a bond issuer will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer’s ability to make such payments will cause the price of that bond to decline. Credit risk should be low for the fund because it purchases only bonds that are of investment-grade quality.
  • Call risk: The chance that during periods of falling interest rates, issuers of callable bonds may call (redeem) securities with higher coupon rates or interest rates before their maturity dates. The fund would then lose any price appreciation above the bond’s call price and would be forced to reinvest the unanticipated proceeds at lower interest rates, resulting in a decline in the fund’s income.
  • Manager risk: The chance that poor security selection will cause the fund to underperform relevant benchmarks or other funds with a similar investment objective.