The Vanguard Wellington Fund, which, on average, has returned 8.24 percent annually since its inception, turns 90 this year, writes Erin Arvedlund for The Philadelphia Inquirer.
Vanguard’s oldest fund was established by Philadelphia accountant Walter Morgan, who was known for giving Vanguard founder John Bogle his start.
The fund is a “balanced” fund, with a mix of stocks and bonds. In its nine decades of existence, it has survived the 1929 Great Depression, the 2008 Financial Crisis, and most recently, the 2018 market correction.
The fund grew from the original $100,000 to overseeing assets of $102 billion. This puts it among the largest balanced funds in the industry.
According to Dan Newhall, a Vanguard Principal and the Head of Oversight and Manager Search, Wellington is considered the “blue blazer” of Vanguard mutual funds, thanks to its reliability.
“Wellington Fund provided attractive downside protection,” said Newhall. “That keeps investors in the game and doesn’t shake them out in periods of volatility.”
The fund invests between 60 and 70 percent of assets in blue-chip stock and the remaining percentage in government and corporate bonds. Its mandate to generate dividends for investors makes it especially popular among retirees.
Read more about the Vanguard Wellington Fund in The Philadelphia Inquirer here.