(PUB) Investing 2016
7
June 2 016
Morningstar FundInvestor
Data through May 31, 2016 FINRA members: For internal or institutional use only. Vanguard Wellington™ Inv
Mstar Category Allocation--50% to 70% Equity
Ticker VWELX
Yield 2.5%
Total Assets $89,892 mil
Benchmark 1: Morningstar Mod Tgt Risk TR USD Benchmark 2: Morningstar Mod Tgt Risk TR USD Morningstar Analyst Rating 05-13-16 Œ
Investment Style Equity
Historical Profile Return Risk Rating High Average QQQQQ Highest
1 1 1 1 4 1 1 1
15.0 17.5 20.0
Growth of $10,000
Investment Values of Fund Investment Values of Benchmark 1
Morningstar Pillars Process
12.5
∞ Positive ∞ Positive ∞ Positive ∞ Positive ∞ Positive
Performance
10.0
People Parent
Performance Quartile (within Category)
& & & ( ( & * & & & & 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 05-16 32.44 32.62 24.43 28.85 31.10 31.34 33.84 37.94 39.15 36.79 38.10 14.97 8.34 -22.30 22.20 10.94 3.85 12.57 19.66 9.82 0.06 4.20 2.02 -0.30 -0.10 0.42 -1.40 3.26 0.53 5.36 4.93 1.85 0.47 2.02 -0.30 -0.10 0.42 -1.40 3.26 0.53 5.36 4.93 1.85 0.47 3.27 3.37 3.22 3.73 2.98 3.07 3.11 2.83 2.66 2.59 0.62 11.70 4.97 -25.52 18.47 7.95 0.78 9.47 16.84 7.17 -2.53 3.58 0.98 1.08 1.04 0.90 0.85 0.94 0.96 0.95 1.00 1.00 0.23 1.40 1.42 0.00 0.00 0.00 0.00 0.44 1.54 1.50 1.39 0.00 0.30 0.27 0.29 0.34 0.30 0.27 0.25 0.26 0.26 0.26 . 3.10 3.14 3.44 3.59 2.97 2.95 2.91 2.61 2.54 2.55 . 8 22 13 62 69 7 38 22 11 17 15
Price
History
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 „ ´ ‰ Á
NAV
Total Return % +/- Bmark 1 +/- Bmark 2 Income Return % Capital Return % Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil Total Rtn % Rank Cat Income $
Pillar Spectrum ∞ Positive
§ Negative
¶ Neutral
Performance 05-31-16 1st Qtr 2nd Qtr
3rd Qtr
4th Qtr
Total
2012 2013 2014 2015 2016
7.55 -0.97 4.69 0.96 12.57 7.05 1.55 3.55 6.30 19.66 2.36 4.00 0.02 3.14 9.82 0.85 -0.54 -4.12 4.04 0.06
.
25
23
30
28
35
38
31
35
71
39
29,675 30,979 23,233 28,290 26,691 25,506 26,746 26,920 23,377 19,330 19,504
Rating and Risk Time Period Load-Adj Return %
Portfolio Analysis 03-31-16 Total Stocks: 93 Share change since 12-31-15
1.91
— — — —
Morningstar Rtn vs Cat
Morningstar Risk vs Cat
Morningstar Risk-Adj Rating
Sector
YTD Ret % % Assets
Trailing
Total Return%
+/- Bmark 1
+/- Bmark 2
%Rank Cat
Growth of $10,000
T Wells Fargo & Co Y Microsoft Corp T Merck & Co Inc
Finan Svcs Technology
-5.31 2.31 -3.17 2.19 7.38 1.96
1 Yr 3 Yr 5 Yr
1.93 7.53 8.50 7.33 8.19
3 Mo 6 Mo
7.44 0.82 0.82 2.74 0.44 0.45 1.93 2.69 2.69 7.53 2.82 2.82 8.50 3.12 3.12 7.33 1.65 1.65 7.06 1.02 1.30
13 10,744 13 10,274 6 10,193 6 12,434 5 15,038 4 20,294 4 27,834
Avg QQQQQ Avg QQQQQ -Avg QQQQQ
High High High
Hlth Care
1 Yr
Y Verizon Communications In T Comcast Corp Class A
Comm Svcs 12.57 1.86 Comm Svcs 13.10 1.85
10 Yr Incept
3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg
Y Alphabet Inc A T Chevron Corp
Technology
-3.75 1.60 14.65 1.60 0.18 1.52
Energy
Other Measures
Standard Index
Best Fit Index
T JPMorgan Chase & Co
Finan Svcs Finan Svcs
Alpha
2.6
0.2
Y Chubb Ltd
— 1.44
Beta
1.03
0.66
Tax Analysis
Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
R-Squared
93
96
3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated)
5.49 6.91 5.96
12
1.90 1.47 1.28
73 73 68
Date of Maturity
Value $000
% Assets
Total Fixed Income: 1164
Amount 000
9 5
Standard Deviation
7.58 7.53 0.99
US Treasury Note 1.75% 09-30-19 US Treasury Note 1.375% 09-30-18
950,000 974,786 1.11 874,350 886,923 1.01
Mean
Sharpe Ratio
Potential Capital Gain Exposure: 22% of assets
Equity Style Style:
Fixed-Income Style Duration: Extensive Quality: Medium Avg Eff Duration 1 Avg Eff Maturity Avg Credit Quality Avg Wtd Coupon Sector Weightings h Cyclical r BasicMat t CnsmrCyc y FinanSvcs u Real Est j Sensitive i CommSrvs
Morningstar's Take by Alec Lucas 05-13-16 Vanguard Wellington’s resilience supports its Morningstar Analyst Rating of Gold. The fund often proves its mettle in equity market downturns, as it did in early 2016. It started the year near its base 65% stock weighting, which then ranked in the allocation--50% to 70% equity Morningstar Category’s top decile. It also had a tiny cash cushion. Nonetheless, the fund’s 5.2% year-to-date loss through Feb. 11 was 3 percentage points less than the category norm. The equity portfolio’s tilt toward competitively advantageddividend-payerspreservescapitalbetterthan most. Buying the companies when they’re out of favor helps, too. Equity manager Edward Bousa built most of the fund’s position in current top-holding Wells Fargo WFC after the firm slashed its quarterly dividend in the depths of the 2007-09 financial crisis. The firm has grown its payout nearly eightfold since and has a wide Morningstar Economic Moat Rating because of its large depositor base and diverse range of fee-generating businesses. In late 2015, that stock was part of the fund’s 58.8% combined stake in wide or narrow moat companies, which was among the category’s highest.
Value
Size:
Large-Cap
The fund’s opportunism extends to its mix between stocks and bonds. While Bousa and fixed-income manager John Keogh eschew big tactical shifts, they try to take advantage of the market’s fluctuations. Keogh routinely keeps a mid- to upper-teens stake of the fixed- income portfolio in liquid securities, like Treasuries, to provide funds for Bousa to buy stocks when they drop, as happened in early 2016. Management’s coordinated approach has produced strong performance in varied market conditions. The fund had a top-quartile 19.7% gain in 2013’s rally and stayed flat amid considerable turbulence in 2015, which placed in the topquintile.That's led to the fund'sstellar long-term record versus its peers. The bond portfolio’s above-average duration could dull short-term results if interest rates surge. The fund’s massive asset base also poses a challenge. But its strengths make it one of the category’s best options.
6.6 Yrs 9.8 Yrs
Value Measures
Rel Category
Price/Earnings 16.07
0.94 0.98 1.06 1.06 1.08 0.94 1.32 0.65
Price/Book Price/Sales
2.10 1.60
A
3.67% 1 figure provided by fund as of 03-31-16
Price/Cash Flow 8.71 Dividend Yield % 2.91
% of Stocks
Rel Bmark 1
Growth Measures
% Rel Category
Long-Term Erngs 8.89
27.97 0.72 0.70 0.14 5.39 0.46 21.58 1.28 0.30 0.06 40.40 1.12 6.44 1.75 9.03 1.36 11.72 0.96 13.21 0.97 31.62 1.27 7.98 0.84 19.55 1.77 4.09 0.94
Book Value
3.39 -0.79
Sales
Cash Flow
-2.51 -10.84
Historical Erngs 2.69
-1.21
Market Cap % Giant
65.3 Small
0.0 0.0
Large 32.5 Micro
o Energy p Industrl a Technlgy k Defensive s CnsmrDef d Hlthcare f Utilities
Mid
2.2 Avg $mil:
98,481
Composition - Net
Cash 1.0 Stocks 65.5 Bonds 33.0 Other 0.5 Foreign 11.9 (% of Stock)
Address:
Vanguard Wellington Fund Valley Forge PA 19482
Minimum Purchase: Min Auto Inv Plan:
$3000 Add: $1 — Add: —
IRA: —
800-662-7447
Sales Fees:
No-load
Web Address:
www.vanguard.com
Management Fee:
0.24%
Inception:
07-01-29
Actual Fees:
Mgt:0.24% Dist:—
Advisor:
Wellington Management Company LLP
Expense Projections: 3Yr:$84 5Yr:$146 10Yr:$331
Subadvisor:
None
Income Distribution:
Quarterly
A
ß ® Mutual Funds
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