(PUB) Investing 2015

January 2 015

Morningstar FundInvestor

7

Data through December 31, 2014

Ticker

Status Yield Total Assets

Mstar Category Moderate Allocation

VWELX Closed 2.5% $89,540 mil

Morningstar Analyst Rating 12-19-14

Investment Style Equity Stock %

Historical Profile Return Risk Rating High Below Avg Highest

66% 65% 62% 65% 66% 65% 65% 65% 64%

Œ

Manager Change Partial Manager Change

14.0 18.0 22.0 26.0

Morningstar Pillars Process Performance

Growth of $10,000

∞ ∞ ∞

Positive Positive Positive Positive Positive

Investment Values of Fund Investment Values of M* MdTgRk

People Parent Price

10.0

∞

NAV Total Return % +/-M* MdTgRk +/-Mstr Md Ag Rk Income Return % Capital Return % Total Rtn % Rank Cat Performance Quartile (within Category) History

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 12-14

Morningstar Analyst Rating Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Œ „ ´ˇ ¨

24.56 20.75

28.81 11.17

30.19 6.82 -4.66 -7.25 3.01 3.81

30.35 14.97

32.44

32.62

24.43 22.20

28.85 10.94

31.10 3.85 -8.48

31.34 12.57 11.98 14.50

33.84 19.66

39.15

-22.30 8.34 -30.93 -4.61 -31.24 -7.65

9.82 4.93 4.85 2.66 7.16 1.00 1.50 11

-11.31 27.44 -17.97 33.05

7.93 6.12 3.27

-10.83 44.39

7.62 5.33 2.83

-11.07 -16.61 52.85

3.15

3.07 8.10 0.77 0.00 0.31 2.99 17

3.37

3.22

3.73

2.98 7.96 0.90 0.00 0.30 2.97 69

3.07 0.78 0.85 0.00 0.27 2.95 7

3.11 9.46 0.94 0.00 0.25 2.91 38

17.60

11.70

-25.52 4.97

18.47

16.83

43

20

8

22

13

62

22

Pillar Spectrum Positive ∞

0.84 0.00 0.36 3.00

0.88 0.91 0.29 2.93

0.90 0.97 0.30 3.10

0.98 1.40 0.27 3.14

1.08 1.42 0.29 3.44

1.04 0.00 0.34 3.59

0.96 0.44 0.26 2.61

Income $

§ Negative

¶ Neutral

Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil

. . .

Performance 12-31-14 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total 3.85

24

24

25

23

30

28

35

38

31

35

.

2010 2011 2012 2013 2014

3.68 -6.75 4.16 0.92 7.55 -0.97 7.05 1.55 2.36 4.00

8.51 5.74

23,377 26,920 26,746 25,506 26,691 28,290 23,233 30,979 29,675 26,251 28,328 24,326

-8.70 8.22 12.57 4.69 0.96 19.66

Rating and Risk Time Load-Adj

Portfolio Analysis 09-30-14 Total Stocks:99

3.55 6.30

9.82

0.02

Morningstar

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

. .

P/E

YTD % Net

Period Return % Rtn vs Cat

Share change since 06-30-14

Sectors

Ratio Return % Assets 13.4 -2.96 2.34 31.1 2.20 1.90 18.3 -3.15 1.70 10.1 -0.45 1.69 11.6 -2.60 1.64 11.6 -2.34 1.63 10.3 -3.65 1.55 17.3 -0.75 1.32

1 Yr 3 Yr 5 Yr

9.82

Trailing

Total

+/- M* +/- Mstr

%Rank Growth of

Wells Fargo & Co Merck & Co Inc Microsoft Corp

Finan Svs Hlth care

Return% MdTgRk Md Ag Rk

Cat

$10,000

13.94 11.25

+Avg +Avg High

-Avg -Avg -Avg

3 Mo 6 Mo 1 Yr

3.14 1.97 3.17 4.02 9.82 4.93 13.94 3.60 11.25 2.54 7.97 1.40 7.82 1.85

1.92 4.45 4.85 0.95 1.04 0.91 1.93

19 10,314 17 10,317 11 10,982 15 14,792 12 17,041 6 21,529 3 30,938

Technology 18.2 -0.27 1.81

10 Yr Incept

7.97 8.28

Comcast Corp Class A

Comm Svs

Verizon Communications In Comm Svs

3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg

JPMorgan Chase & Co Exxon Mobil Corporation

Finan Svs

Other Measures

Standard Index

Best Fit Index

Energy Energy

M* MdTgRk

S&P 500

Chevron Corp

Alpha

4.5

1.5

Johnson & Johnson

Hlth care

Beta

0.89

0.64

Date of Maturity

Amount

Value % Net

R-Squared

92

93

Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat 3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated) 12.08 18 1.63 67 9.85 15 1.27 70 6.63 6 1.25 67 Potential Capital Gain Exposure: 30% of assets Morningstar’s Take by Alec Lucas 12-19-14 Vanguard Wellington charts a steady course. Stability, long a hallmark of this predepression era fund, has been the key to its recent success as well. That starts with veteran managers Edward Bousa and John Keogh. In July, they passed the eight-year mark in their shared tenure as leads of the equity and fixed-income portfolios, respectively. At this point, each one knows well how the other works. Bousa keeps equity exposure centered at 65% of the fund’s assets. He invests about half of that stake in stocks with above-average yields relative to the S&P 500 Index and whose firms are competitively positioned. Top-five holding Merck MRK, for example, has a stout dividend and revenue base, and Bousa believes the market is underestimating its current and future drug lineup’s growth potential. The equity portfolio’s other half is split between stocks poised to benefit from supply-and-demand dynamics, like the rising oil prices, and growth names bought on dips. For example, Bousa initiated a small position in Google GOOG during its brief share-price lull in the second quarter. The mix

Total Fixed-Income:1871 $000 Assets US Treasury Note 1.375% 09-30-18 953,900 948,091 1.10 US Treasury Bond 2.875% 05-15-43 784,297 734,792 0.85 US Treasury Note 0.5% 07-31-16 664,000 664,000 0.77 US Treasury Note 1.5% 06-30-16 506,905 515,857 0.60 FNMA 4.5% 04-01-41 289,799 313,246 0.36 US Treasury Note 0.25% 11-30-15 301,000 301,187 0.35 Freddie Mac Gold Single F 02-01-44 246,500 265,835 0.31 FNMA 4.5% 03-01-41 234,535 253,511 0.29 FNMA 4.5% 08-01-40 212,135 229,299 0.27 $000

Standard Deviation

6.00

Mean

13.94

Sharpe Ratio

2.21

results in a fairly all-weather equity portfolio. Keogh, meanwhile, invests his roughly 35% fixed-income stake in higher-quality issues, keeping duration within a year of the Barclays U.S. Credit A or Better benchmark. As of November 2014, duration stood at 6.5 years, a bit shorter than the index’s 6.7 but still above the typical moderate-allocation rival’s 4.4 years. While that leaves the fund potentially more vulnerable to rising interest rates than most peers, it’s been a boon lately, as, contrary to market sentiment, rates have fallen in 2014. Whether interest rates fall or rise management’s consistent process should lead to competitive long-term results. But that does not preclude a strong short-term showing either. Thus far in 2014, the fund has also benefited from its heavy equity stake in health care, one of the better performing sectors, and its tilt toward larger-cap stocks. Through November, both have helped the fund to a 10% top-decile year-to-date return. The fund’s investors should stay put.

Equity Style

Fixed-Income Style Duration: Moderate Quality: Medium Avg Eff Duration Avg Eff Maturity Avg Credit Quality Avg Wtd Coupon 1

Style: Value Size: Large-Cap Value Measures Price/Earnings Price/Book Price/Sales Price/Cash Flow Dividend Yield % Growth Measures Long-Term Erngs Book Value Sales Cash Flow Historical Erngs

6.3 Yrs 9.2 Yrs

Rel Category

15.28 2.10 1.50 6.12 2.76

1.06 1.10 1.23 0.89 1.16 0.85 6.32 0.43 4.57 0.19

A

3.97%

figure provided by fund as of 09-30-14 1

Sector Weightings

% of Stocks

Rel M* MdTgRk High

3 Year Low

% Rel Category

9.05 7.33 1.48 6.12 8.25

Cyclical 28.72 0.74 BasicMat 1.52 0.28 3 1 CnsmrCyc 5.99 0.53 7 6 FinanSvs 20.98 1.18 21 16 Real Est 0.23 0.05 0 0 Sensitive 41.53 1.11 CommSrvs 5.30 1.40 6 4 Energy 10.85 1.34 13 11 Industrl 12.62 1.06 15 12 Technlgy 12.76 0.95 14 11 Defensive29.75 1.24 CnsmrDef 5.98 0.71 10 6 Hlthcare 20.87 1.90 21 15 Utilities 2.90 0.64 5 3

h r t y u j i o p a k s d f

Market Cap % Giant 65.8 Large 33.7 Mid 0.5

Small Micro

0.0 0.0

Avg $mil:

98,628

Address:

Vanguard Wellington Fund Valley Forge, PA 19482 800-662-7447 www.vanguard.com

Minimum Purchase: Min Auto Inv Plan:

Closed Closed No-load 0.24% 3Yr:$84 Quarterly

Add: . Add: .

IRA: .

Composition - Net

Cash 0.9 Stocks 64.0 Bonds 34.6 Other 0.5 Foreign 13.5

Sales Fees:

Web Address: Inception: Advisor: Subadvisor: NTF Plans:

Management Fee:

07-01-29

Actual Fees:

Mgt:0.24% Dist: .

Wellington Management Company, LLP

Expense Projections: Income Distribution:

5Yr:$146 10Yr:$331

None

(% of Stock)

Vanguard NTF

Mutual Funds ß ®

© 2015Morningstar, Inc.All rights reserved. The information herein isnot representedorwarranted to be accurate, correct, complete or timely.Past performance isnoguaranteeof future results.Accessupdated reports at To order reprints, call312-696-6100. mfb.morningstar.com.

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