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7 Best Vanguard Funds for the Return of Volatility

The best time to begin planning for volatility is when the market is calm. Start with this list of stalwart Vanguard funds.

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Best Vanguard Funds for a Volatile Market: Vanguard Wellesley Income (VWINX)

Expenses: 0.22%
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.

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Article printed from InvestorPlace Media, http://investorplace.com/2017/05/7-best-vanguard-funds-for-market-volatility/.

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