The Difference Between the Wellesley and the Wellington Funds

If you had a return of 8% a year, you would have to reduce that by 0.56%. On the other hand, if you invested in the Wellesley and the Wellington fund, the tax cost is really much higher. Now when we look at the Wellington and Wellesley together over the whole period, that compound rate of return is 7.3%. So a slightly lower before tax return with the tax managed fund. But there's more to it than that. It's also that the balanced fund has a very different portfolio. The Vanguard Tax Manage has got about 900 stocks in the portfolio versus I think probably between the Well Wesley and the Wellington, there's less than 200 companies

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