Vanguard WellingtonVWELX

Morningstar Rating

Fund Research and Analysis

by Dan Culloton

Vanguard Wellington has yet to show its age.

This fund just turned 80 years old and is lagging most of its peers in the year-to-date period through Aug. 27, 2009. But this elder statesman of the mutual fund industry still sets a fine example. It has stable management: Ed Bousa is just the third equity manager the fund has ever had. Read more

Kudos

Solid long-term record.

Low, low costs.

Below-average volatility.

Broad diversification.

Managers invest meaningful amounts in the fund. Read more

Risks

Relatively speaking, the fund sometimes performs poorly in growth-driven markets.

More sensitive to interest-rate hikes than most of its peers.

Managers run significant sums of money outside of this fund in the same style. Read more

Strategy

This fund's fixed-income and equity portfolios follow disciplined strategies. The bond portfolio typically emphasizes high-quality issues, but it has often taken on a modest amount of interest-rate risk. Read more

Management

John Keogh has been the lead fixed-income manager since 2006 but has been with Wellington Management, this fund's subadvisor, since 1983 and worked as a backup on this fund since 2004. Ed Bousa, who took over the equity portfolio at the end of 2002, did a solid job managing Putnam Equity Income PEYAX from late 1992 through early 2000. Read more

Inside Scoop

This fund tends to have a slightly bigger equity stake than the moderate-allocation norm, and it's more willing than many of its peers to consider longer-duration bonds. Read more

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