If you have built a solid fund of funds, the last thing you want to do is separate it and create a new one simply because the stock market makes one of its periodic swan dives.

But that does not mean you should not tinker in a market that acts as if he wanted to go down. You could reduce, for example, 5% of your equity allocation and place the product in a low-risk bond fund.

If you think your investments need to be reorganized, you can take your most volatile fund and replace it with a less risky offer.

Where to look for a replacement? Vanguard funds include a handful of top-notch defensive deals that, if they are likely to lose money in a bear market, should nonetheless hold up better than most other funds.

<p class = "canvas-canvas-text canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Here are the six best Vanguard funds to own in Note: Some these funds are only available directly from the low cost provider. At the same time, if you use a discount broker, you may be able to buy cheaper Admiral shares without meeting the minimum required for Vanguard, which typically ranges from $ 10,000 to $ 50,000 depending on the funds. Note: Some of these funds are only available directly from the low-cost provider, and at the same time, if you use a discount broker, you may be able to buy cheaper Admiral shares without respecting the price. the minimum required by Vanguard, which typically ranges from $ 10,000 to $ 50,000, depending on the fund.

<h3 class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "SEE ALSO: The 25 best inexpensive mutual funds you can buy"data-reactid =" 17 "> SEE ALSO: The 25 best inexpensive mutual funds you can buy

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Market value: $ 51.7 billion

Expenditure ratio: 0.22%

Minimum investment: $ 3,000

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Vanguard Wellesley Income (VWINX, $ 26.12) is a fund that even the most nervous investor will find easy to maintain – whatever the negative behavior of the stock market. Over the past three years, Wellesley, managed by Wellington Management, has been just over half as volatile as Standard & A; Poor's index of 500 shares. Data-reaid = "40"> Vanguard Wellesley Income (VWINX, $ 26.12) is a fund that even the most nervous investor will find easy to manage. Regardless of the behavior of the stock market, Wellesley, led by Wellington Management, was slightly more than half as volatile as the Standard & Poor's 500 stock index. About 61% of the fund is in bonds and the rest in first-rate stocks.

John Keogh, the bond manager, sticks largely to issues rated single-A and above. Less than 20% are Baa bonds, which are still investment grade. The majority of the bond portfolio is made up of companies and states, as well as a few asset-backed bonds. Keogh has long-term obligations. The portfolio of VWINX has a duration of 6.3 years, which means that part of the fund is expected to fall by 6.3 percentage points when rates rise by one point.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Michael Reckmeyer, the chief stockpicker, buys mostly mega He seeks equities that yield relatively generous dividends and can continue to increase these payments.He is careful to buy stocks only when they are cheap enough, which gives the fund a distinct value.His favorite sectors are care (18.4% stocks), financial services (14.5%) and consumer staples (13.3%), with JPMorgan Chase (JPM), Verizon (VZ) and Johnson & amp; Johnson (JNJ) the three main assets for the moment. "data-reactid =" 42 "> Michael Reckmeyer, chief stockpicker, buys mainly mega-caps, looks for stocks that pay relatively generous dividends and can continue to increase payments. healthcare (18.4% of equities), financial services (14.5%) and consumer goods (13.3%), with JPMorgan Chase (JPM), Verizon (VZ) and Johnson & Johnson (JNJ) are the top three titles of the moment.

Despite its conservative nature, the fund has achieved an annualized return of 8.8% over the last 10 years. This includes a loss of 1% so far this year. The yield of VWINX is 3.4%.

<h3 class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "SEE ALSO: Top Vanguard Funds for 401 (k) Retirement Savers"data-reactid =" 44 "> SEE ALSO: The Best Vanguard Funds for 401 (k) Retirement Savers

The story continues

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Market value: $ 100.9 billion

Expenditure ratio: 0.25%

Minimum investment: $ 3,000

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Vanguard Wellington (VWELX, $ 41.62) is much more aggressive than Wellesley, but it's still a relatively tame beast. With 65% of the fund in stocks and the rest in bonds, it is a classic balanced fund – with the same allocation between stocks and bonds that many investment advisers recommend to the majority of their clients. It is about two-thirds as volatile as the Russell 1000 Value Index. "Data-reactid =" 71 "> Wellington's Vanguard (VWELX, $ 41.62) is much more aggressive than Wellesley, but it's still a relatively tame beast – stock funds and the rest in bonds, that's a conventional balanced fund – with the same mix of stocks and bonds that many investment advisers recommend to the majority of their clients, about two-thirds as volatile as the Russell 1000 Value Index.

The bond portfolio is virtually a carbon copy of Wellesley, but it should be noted that John Keogh manages the bond portion of both funds. Like Wellesley, it sticks largely to single-debt bonds and above with less than 20% of Baa's debt. The duration is 6.3 years, identical to that of Wellesley. The fund reports a little less, at 2.7%.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Edward Bousa, the stock manager, is slightly more Wellesley & Reckmeyer, for example, is willing to buy growth stocks after falling their prices, for example, he bought Alphabet (GOOGL) when his share price has been depressed towards the end of 2014 and that he remains in the top 10 shareholders. "data-reactid =" 73 "> Edward Bousa, the stock manager, is slightly more aggressive than Wellesley's Reckmeyer For example, he bought Alphabet (GOOGL) when his course had been depressed by the end of 2014 and that he remained in the top 10 assets.

But the fund always leans towards value. Bousa, like Reckmeyer, is looking for solid dividends. In terms of sectors, he currently enjoys finance (22.7% equity), healthcare (15.5%) and technology (12.1%).

Wellington is the best choice for most investors, with the exception of those who are retiring or those who may need to spend their money fast enough. Over the last 10 years, the fund has achieved an annualized return of 11.04%.

<h3 class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "SEE ALSO: 10 best value stocks to buy now"data-reactid =" 76 "> SEE ALSO: 10 best-value stocks to buy now

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Market value: $ 20.7 billion

Expenditure ratio: 0.07%

Minimum investment: N / A

Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Vanguard ETF short-term corporate bonds (VCSH, $ 77.74) is an exchange-traded fund with an index and offers investors a significant return of 3.6%. "Data-reactid =" 99 "> Vanguard Short-Term Corporate Bond ETF (VCSH, $ 77.74) presents low risk Exchange traded index fund offering investors an attractive return of 3.6% .

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The fund, which follows US Barclays 1- Index 5 years of business, takes little credit risk.All its holdings are all quality bonds like Anheuser-Busch InBev (BUD), CVS Health (CVS) and Bank of America (LAC), although 40% are rated only Baa or less. The duration is only 2.7 years – almost a percentage point lower than the yield. This means that VCSH should generate revenue on the basis of total return, even if rates increase by 1%. "Data-reactid =" 100 "> The fund, which follows the Barclays US 1-5 years Corporate Index, takes little credit risk.Anheuser-Busch InBev (BUD), CVS Health (CVS) and Bank of America (BAC), although 40% of them are rated only Baa or less.The duration is only 2.7 years – almost one This means that VCSH should make money on the basis of total return, even if rates increase by one percentage point.

A small risk: more than 40% of the fund's assets are in financial sector debt.

<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Note also that this is available as a class Admiral fonds mutual funds (VSCSX). "data-reactid =" 102 "> Note also that this is an Admiral type mutual fund (VSCSX).

<h3 class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "SEE ALSO: How are you a smart bond investor?"data-reactid =" 103 "> SEE ALSO: How are you a smart bond investor?

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Market value: $ 58.6 billion

Expenditure ratio: 0.20%

Minimum investment: $ 3,000

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Do you want to be safe and secure? ETF clone, the Vanguard Short-Term Investment Fund (VFSTX$ 10.40). "Data-reactid =" 126 "> Do you want to be even safer? Let's take a look at the Vanguard Investment-Grade-Rank Fund's near-clone index (VFSTX, $ 10.40).

Using the same benchmark, this fund is actively managed by Samuel Martinez and Daniel Shaykevich of Vanguard. It's a little safer than the ETF because it does not only have businesses, but also treasury bills. In addition, only 21% of its assets are in Baa or below, and its financial resources are less important.

But VFSTX is a very similar fund. It yields slightly less at 3.27% and has a slightly shorter duration of 2.6 years. It's a little more expensive, however, at 0.20% cost.

<h3 class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "SEE ALSO: 12 alternative strategies for high efficiency and stability"data-reactid =" 129 "> SEE ALSO: 12 alternative strategies for high efficiency and high stability

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Market value: $ 3.1 billion

Expenditure ratio: 0.25%

Minimum investment: $ 3,000

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Global Minimum Volatility of Vanguard (VMVFX, $ 14.00) is a fascinating fund, although complex, that would be perfect for investors who want to reduce risk. "Data-reactid =" 152 "> The global minimum volatility of Vanguard (VMVFX, $ 14.00) is fascinating, if complicated, a fund that might be suitable for investors who want to reduce risk.

Managed in-house by Antonio Picca, it takes a quantitative approach to generate lower risk-adjusted returns than its benchmark, the FTSE Global All Cap Index. It invests approximately half of its assets in foreign equities and the other half in US equities. It covers all foreign exchange risk.

The fund takes several measures designed to limit volatility. It favors stocks with low historical volatility and shares with low correlations between them. The manager maintains sector weightings within five percentage points of the weighting of their FTSE index, but overweight defensive sectors, such as consumer staples and health care, which together account for one quarter of assets.

The FTSE index lost 12.1% from June 2015 to February 2016, but the Vanguard fund has only lost 4.6%, according to Morningstar.

If you buy this fund, remember: it will almost always be in bull markets. From January 2014 to July 2018, the fund absorbed 40% of market declines, but only 77% of its lead, explains Morningstar.

Over the past three years, the fund has been about halfway between Wellington and Wellesley in terms of volatility. It was less volatile than Wellington but more unstable than Wellesley. Since its creation, the fund, launched at the end of 2013, has achieved an annualized return of 10%.

Do not forget that VMVFX is relatively new and has not been tested in a bear market, unlike Wellington and Wellesley.

<h3 class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "SEE ALSO: 39 European aristocrats of the dividend for international income growth"data-reactid =" 159 "> SEE ALSO: 39 European aristocrats of the dividend at the service of international income growth

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Market value: $ 26.1 billion

Expenditure ratio: 0.19%

Minimum investment: $ 3,000

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Vanguard exempt from tax in the short term (VMLTX, $ 10.79) is a simplified short-term municipal bond fund. It yields 2.2% and its duration is 2.6 years, which means it should only lose very little if the rates increase by one point. Vanguard's "Data-reactid =" 182 "> Exempt Limited Term Tax (VMLTX, $ 10.79) is from" vanilla plain "short-term municipal bond fund offering a yield of 2, 2% and a duration of 2.6 years, which means that he should only lose very little if the rates increase by 1%.

Managed internally by Adam Ferguson, the fund follows Barclays' 1-5 year municipal bond index. Ferguson and the rest of Vanguard's fixed income team issue detailed judgments that they use to adjust the duration and quality of the fund's credit. The vast majority of VLTMX bonds are single or greater than 11%.

The trick of this fund is hiding: its low expense ratio. Ferguson does not need to do anything extraordinary to beat most of his peers – he just needs to avoid making big bets that turn sour. So he does not make big bets. Over the last 10 years, the fund has achieved an annualized return of 2.0%, almost exactly the same as the index.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Buy the Admiral shares (VMLUX) if you can manage the minimum initial investment of $ 50,000. They charge only 0.09%. "Data-reactid =" 185 "> Buy Admiral shares (VMLUX) if you can manage the minimum initial investment of USD 50 000. They only charge 0.09%.

<h3 class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "SEE ALSO: 101 Best Dividend Securities to Buy for 2019 and Beyond"data-reactid =" 186 "> SEE ALSO: 101 Optimum dividend stocks to buy for 2019 and beyond

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