Balanced Option (Stocks & Bonds)

If you are interested in an investment that combines active management with a balanced exposure to both equities (stocks) and bonds, a balanced option may be appropriate.

Balanced Option Investment Objectives Asset Category Underlying Investments Investment Style/ Characteristics
Vanguard Wellington Option Show Details Seeks to provide long-term capital appreciation and moderate current income Value common stocks and fixed-income securities Vanguard Wellington Fund Invests mainly in undervalued large companies with prospects for improvement Show Details

Vanguard Wellington Option - Investment Strategy

The Vanguard Wellington Option invests 100% of its assets in Vanguard Wellington Fund. The fund invests 60% to 70% of its assets in dividend-paying, and, to a lesser extent, non-dividend-paying common stocks of established large companies. In choosing these companies, the advisor seeks those that appear to be undervalued but have prospects for improvement. These stocks are commonly referred to as value stocks. The remaining 30% to 40% of the fund's assets are invested mainly in fixed-income securities that the advisor believes will generate a moderate level of current income. These securities include investment-grade corporate bonds, with some exposure to U.S. Treasury and government agency bonds, and mortgage-backed securities. The Vanguard Wellington Option is actively managed.

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