Red-hot chipmaker AMD pops on surprise Q2 profit >>> READ MORE

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.

      View All  

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.

Next Page

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC