Best Vanguard Funds for a Volatile Market: Vanguard Wellesley Income (VWINX)
Minimum Initial Investment: $3,000
Perhaps the most reliable mutual fund type to minimize volatility is a conservative allocation fund. Vanguard Wellesley Income (MUTF:VWINX) is that, and one of the best Vanguard funds on the market period.
The VWINX portfolio consists of roughly one-third stocks and two-thirds bonds, which makes it more conservative than most balanced funds. The portfolio blend currently results in a yield of about 2.7%.
The stocks are mostly quality large-caps like Microsoft, JPMorgan Chase & Co. (NYSE:JPM) and Wells Fargo & Co (NYSE:WFC). In fact, you could consider it mega-cap, with an average stock size of roughly $125 billion. The fixed-income side includes nearly 1,000 bonds that are investment-grade quality or higher.
One word of caution about VWINX: Its heavy bond allocation can pull performance below category averages when stock prices and interest rates are both rising.