On a day when blue chip stocks dropped in value and bonds were up in value you would think that Wellesley would easily outperform Wellington. However, exactly the opposite happened. Both funds were down in value on the day (Wellesley down .08% and Wellington down .04%). Wellesley was down twice as much as Wellington? Why? Wellesley is 2/3 bonds and 1/3 stocks, while Wellington is exactly the opposite. Since bonds were up and stocks were down, shouldn't Wellesley do much better as a mostly bond fund? What gives?
OAKBX appears to have a wide fluctuation in their dividend which they pay annually. ( from about 1% to 8%) Last December 2009 they only paid .293 per share which was only about 1.14%. I wouldn't know whether to buy steaks or hamburger if I depended on the OAKBX fund for income. For dividend consistency I believe that Wellesley ( usually between 3 to 5 percent) wins hands down.
OAKBX seems a little more risky as they can invest anywhere from 40% to 75% in common stock. Wellesley can invest up to 40% in common stock. Wellesley's expense ratio is also less than half that of OAKBX.
I am not saying that OAKBX is a bad fund but it certainly is more risky and not very predictable with it's dividend payouts.
Top 10 equity holdings as of 5/31:
1 Merck & Co. Inc./NJ
2 Chevron Corp.
3 Home Depot Inc.
4 Pfizer Inc.
5 Johnson & Johnson
6 Kimberly-Clark Corp.
8 Toronto-Dominion Bank
9 McDonald's Corp.
10 3M Co.
Both of these funds are quality funds along with OAKBX. Frustrating not knowing holdings in a more timely fashion but that is the nature of a mutual fund and I suppose what a brokerage acciunt is for.
Sure, over the long haul you are correct. But, you'll drive yourself crazy trying to account for each daily rise or fall. That's true even when you compare such similar funds as Wellesley and Wellington. In order to actually answer the question you would have to know precisely what each funds holdings were on the days in question (and that's not published information). You could call Vanguard with your question, but I doubt you'd get a satisfactory answer.
hmmm, holdings maybe, just a simple thought. If they held the exact same holdings perhaps the original poster's premise wouldbe correct. Wonder if Wellesley still has BP as a top equity holdimg.
Bottom line is that in a market like we've had over the past decade, there is no better place to park your money than Wellesley.
In regard to the one day issue you mentioned, it could have to do with Wellesley holding a pretty decent amount of BP stock. Although they seemed to have unloaded a lot of it since the oil leak.