Comparison of T Rowe Price Capital Appreciation and Vanguard Wellington funds

by | Nov 27, 2023 | Vanguard IRA | 15 comments




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When it comes to choosing a mutual fund, investors often find themselves comparing various options to find the one that best suits their investment goals. Two popular choices in the mutual fund space are T Rowe Price Capital Appreciation and Vanguard Wellington.

T Rowe Price Capital Appreciation Fund (PRWCX) is a well-established fund that focuses on long-term capital appreciation. Managed by T Rowe Price, this fund invests in a diversified portfolio of both domestic and international stocks, as well as convertible securities and debt instruments. The fund aims to achieve long-term capital growth by investing in companies with strong growth potential.

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Vanguard Wellington Fund (VWELX) is another well-known mutual fund managed by Vanguard. This fund seeks to provide long-term capital appreciation and income by investing in a mix of stocks and bonds. The fund aims to provide investors with a balanced approach to investing, with a focus on both growth and income.

One significant difference between the two funds is their investment strategy. T Rowe Price Capital Appreciation primarily focuses on investing in growth stocks, whereas Vanguard Wellington takes a more balanced approach by investing in both stocks and bonds. This means that T Rowe Price Capital Appreciation may be more suitable for investors seeking higher potential returns, while Vanguard Wellington may appeal to those looking for a more conservative investment approach.

In terms of performance, both funds have a strong track record of delivering solid returns to investors over the long term. However, it is essential to consider the fund’s historical performance in the context of the overall market, as past performance is not indicative of future results.

When it comes to fees, T Rowe Price Capital Appreciation has an expense ratio of 0.71%, while Vanguard Wellington has an expense ratio of 0.25%. This means that Vanguard Wellington has a lower cost structure, making it a more cost-effective option for investors.

Investors should also consider the fund’s minimum investment requirements and distribution frequency when comparing T Rowe Price Capital Appreciation with Vanguard Wellington. These factors can impact an investor’s ability to access the funds and manage their investment portfolio effectively.

Ultimately, the choice between T Rowe Price Capital Appreciation and Vanguard Wellington will depend on an investor’s individual investment objectives, risk tolerance, and preferences. It is essential to conduct thorough research and consult with a financial advisor to determine which fund is the best fit for your investment needs. Both funds have their strengths and weaknesses, and understanding these can help investors make an informed decision that aligns with their financial goals.

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15 Comments

  1. Jeffrey Frankenfield

    Josh love your videos, been following you for several years now and have really learned a lot. Greatly appreciate all of the work and time you have put into building your content….I'm curious have you done a video on "Top 5 balanced funds?" or "Top 5 funds for retirement?" or something like that? God Bless! Jeff

  2. Richard Allen

    Josh, I have had PRWCX as part of my active taxable portfolio since 2005. It, along with several others from T.Rowe, have been very good to me. Currently I have no principal at all at risk in that portfolio and am living on the valuations alone. I plan to keep that fund open along with the others so that I can reinvest any extra retirement income into it, as I know I cannot use retirement funds to add to my IRA's or 401k.

  3. Mr. J

    I have T R P Cap Appreciation. It generates a lot of dividends and capital gains. Sometimes painful to own in the taxable account – works better in my ROTH IRA.

  4. Doro Trando

    I wish you also just compared the fund to sp500

  5. Martin Neumann

    7% junk bonds in a 35 year period where interest rates went from double digit to near zero is a huge plus. as a recent retiree, I don't want junk bonds in my portfolio.

  6. Mark Keller

    There should be other funds that mimic this one? Or you could setup your own via ETFs and percentages, no?

  7. Jadzia K

    The wisest thing that should be on everyone's mind currently should be to invest in different streams of income that doesn't depend on the government. Especially with the current economic crisis around the word. This is still a good time to invest in Gold, silver and digital currencies(BTC, ETH..)

  8. A P

    Wow, I asked you to do this comparison before. Thanks Josh. Half of my Troweprice account is in the Capital Appreciation fund.

  9. Stuart Clubb

    PRWCX was quite successful such that it closed to new investors. It always did pretty well in down times which is why I liked it for slow and steady (and am still in it since around 2003). It did not lose money in 2018 when the S&P lost around 5%. However it has not outperformed the S&P in the last 10 years.

    While it is still technically closed to investors, you can still get into it through the TRowe "Summit" program once you exceed $250K invested with TRowe overall. There is another tier such that at $500K you can access I-Class funds with a $50K minimum for "TRAIX".

  10. John Scott

    I bought some in my Roth IRA and I re-invest all dividends and capital gains every December when they are declared. But they announced that the fund was closed to any new investment. So, I just watch it increase each year.

  11. Wilma

    Great video! Are the charts net earnings after the expense ratios?

  12. FBDerringer

    “Closed to new investors” in my Fidelity account.

  13. Charles Brown

    Josh, I can't believe you haven't heard of T Rowe Capital appreciation., Probably the best actively managed mutual fund there is. I had the fund in my 403B , but once I retired and did ira rollover to fidelity, could no longer purchase without opening a separate account with Trowe.

  14. univibe23

    Too bad, it's closed to new investors.

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