The $22 billion Vanguard Wellesley Income Fund ( VWINX) boasts a five-year annualized return of 7%. The conservative-allocation-category fund's portfolio includes 55 stocks and 630 bonds, and it has an annual portfolio turnover of 30%. In addition to a 3.5% yield, the fund is down 0.9% this month, but has a three-month return of 3%, and it is up 4.6% this year. The Vanguard Wellesley Income Fund's top stock picks include: oil-industry giant Chevron ( CVX), at 1.9% of the fund, followed by drug maker Pfizer ( PFE), 1.4%; home-improvement retailer Home Depot ( HD), 1.4%; health-care-products company Johnson & Johnson ( JNJ), 1.3% and insurer Marsh & McLennan ( MMC), 1.3%.
The $3.6 billion Dreyfus Appreciation Fund ( DGAGX) has a 29% consumer-defensive-stock weighting, more than double that of its peers in the large-blend fund category and a 24% energy weighting versus 11% for its category's average. The lowest sector weighting, at 7.7% of the fund, is consumer-cyclical stocks. The fund has a return of 3.4% over the past three months and 4.6% this year but is down 2.5% over the past month, through June 17. The Dreyfus Appreciation Fund has a solid 4% average annual return over five years. The fund's largest holdings are: oil-industry giant ExxonMobil ( XOM), at 6.6%; cigarette maker Philip Morris ( PM), 5.7%; Coca-Cola ( KO), 4.7%; and another oil-industry behemoth, Chevron ( CVX), at 4.5%.