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Vanguard Wellesley Income Inv Message Board

  • verenagrossi verenagrossi Feb 2, 2012 10:24 AM Flag

    slow and steady

    As a new holder of this fund , I am VERY pleased with the returns . Let's you sleep at night . Is a 20% return out of the question ? Has anyone held the fund in a year approximating a high return ?

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    • FROM YAHHO FINANCE: See best year (20.19%) in 1997. But look at the worst yearr: only a 9.84 % loss in 2008. Wish I held this fund back then.

      Year-to-Date Return: 1.88%
      5-Year Average Return: 6.35%
      Number of Years Up: 35
      Number of Years Down: 6
      Best 1 Yr Total Return (1997-12-31): 20.19%
      Worst 1 Yr Total Return (2008-12-31): -9.84%

    • This fund's return has been good, but I'm not sure that recent history is a good guide to the future. Two thirds of the portfolio is bonds and bonds had a very good year last year. That's unlikely to be repeated. Eventually, the Fed will end the low interest rate policy and then the bonds are likely to drag. On the other hand, the reason the Fed might end the policy is because the economy is doing well and that should help the stock portfolio.

      "Slow and steady" is just about right. You can expect some years a bit more and some years a bit less. You won't ever get super returns in a short time. But you will get good returns over market cycles.

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