If you’ve been stuck searching for Allocation Balanced funds, consider Vanguard Wellington Admiral (VWENX) as a possibility. VWENX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
VWENX is one of many Zacks’ Allocation Balanced mutual funds to pick from. Allocation Balanced funds seek to invest in a balance of asset types, like stocks, bonds, and cash, though including precious metals or commodities is not unusual; these funds are mostly categorized by their respective asset allocation. Investors utilize Allocation Balanced funds as a way to get a good start with diversified mutual funds, as well as for core holdings in a portfolio of funds.
Vanguard Group is based in Malvern, PA, and is the manager of VWENX. Vanguard Wellington Admiral made its debut in May of 2001, and since then, VWENX has accumulated about $100.34 billion in assets, per the most up-to-date date available. Loren Moran is the fund’s current manager and has held that role since January of 2017.
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 8.63%, and is in the top third among its category peers. If you’re interested in shorter time frames, do not dismiss looking at the fund’s 3 -year annualized total return of 6.18%, which places it in the top third during this time-frame.
It is important to note that the product’s returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund’s [%] sale charge. If sales charges were included, total returns would have been lower.
When looking at a fund’s performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. VWENX’s standard deviation over the past three years is 11.96% compared to the category average of 13.33%. The fund’s standard deviation over the past 5 years is 12.66% compared to the category average of 14.15%. This makes the fund less volatile than its peers over the past half-decade.
With a 5-year beta of 0.68, the fund is likely to be less volatile than the market average. Another factor to consider is alpha, as it reflects a portfolio’s performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. With a negative alpha of -2.43, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
