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Vanguard Global Wellesley Income: It's Brand New And It's Already A Buy

Dave Dierking, CFA profile picture
Dave Dierking, CFA


  • The Vanguard Global Wellesley Income Fund will launch on November 1.
  • Global Wellesley will maintain the same 1/3 stock, 2/3 bond allocation as the original.
  • It could have as much as half of the portfolio invested overseas, with the majority of that going to Europe.
  • Investors will be keenly interested in the fund's dividend yield, which I think will be around 2.5%.
  • Given the stellar history of Wellington Management and Wellesley Income's track record, investors should feel comfortable buying this fund right away.

The Vanguard Wellesley Income Fund (VWINX) has amassed more than $54 billion in assets thanks to a 47-year history of delivering superior returns despite maintaining a conservative allocation of ⅓ stocks and ⅔ bonds. Since its inception, the fund has returned nearly 10% a year and has done so with just half the risk of the S&P 500. It has a 5-star rating from Morningstar and remains one of Vanguard’s most popular offerings.

So it’s no surprise that interest is high in the new Vanguard Global Wellesley Income Fund (MUTF:VGWIX) that is scheduled to debut on November 1st along with the Vanguard Global Wellington Fund (VGWLX). It’s expected to have much the same investment style and objective as the original, with the exception of the fact that it’s expected to have roughly half of its portfolio invested overseas.

With the 30-year bull market in bonds looking like it may have hit its peak and the domestic equity markets nearing their 9th consecutive year of gains, now could be a good time for Global Wellesley Income to debut.


Global Wellesley Income is designed, first and foremost, to be an income producing fund. As mentioned above, the fund will keep around ⅔ of assets in investment grade fixed income securities both at home and abroad. Those bonds can be corporate, government, government agency or mortgage-backed securities. The remaining ⅓ of the fund will be invested in large- and mid-cap companies that have a history of above average dividends and the expectation of increasing dividends going forward.

The fund will carry the same minimums as Wellesley Income, $3,000 for the lower minimum Investor class shares, and $50,000 for the cheaper Admiral share class. The expense ratio for the Investor shares is 0.42%, while the Admiral shares charge 0.32%. Vanguard points out that these expense ratios are 50-60% lower than

This article was written by

Dave Dierking, CFA profile picture
Editor of ETF Focus on TheStreet.com. A top 5 Seeking Alpha contributor in ETFs. Speaker at events, such as MoneyShow Orlando 2018. To receive notifications of new articles and blog posts as soon as they're published, click on the orange Follow button and become a real-time follower.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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