Out of all the nearly one million publicly traded mutual funds that have existed in the history of the United States, there are maybe ten of them that are worthy of historical reverence. People often ask: “What is something that would be a suitable building block for a portfolio, a true core holding whose compounding you can count on?” In terms of longevity, there is nothing out there like The Vanguard Wellington Fund, which was launched in July of 1929. It has delivered 8.18% annual returns since its launch date, which is remarkable for two reasons: (1) The fund was launched immediately on the eve of the Great Depression, and (2) the fund is classified as “balanced” meaning it keeps the bond portion of the portfolio between 30% and 40%.
For most of its history, Vanguard Wellington has been a mixture of the bluest of blue chip stock and medium-term … Read the rest of this article!