Vanguard has announced “historic” reductions to the expense ratios for about 43% of its U.S.-based mutual fund and ETF share classes.
The asset manager, started by famed low-cost investor Jack Bogle, said the move would save end investors $350 million in 2025 and called it the “largest annual expense ratio reduction in Vanguard’s nearly 50-year history.”
The reductions are effective immediately across 168 mutual funds and ETF share classes across 87 funds, with an average reduction of 20% per share class. As of December 31, Vanguard had 306 mutual fund share classes and 88 ETF share classes domiciled in the U.S., according to a spokesperson.
The move signals that the fee war among fund managers will continue in 2025 as they jockey for market share. According to Morningstar, the generally lower-cost ETF market continued to boom in 2024, breaking the $1 trillion market for inflows for the first time to reach $10.3 trillion in total assets.
Vanguard’s total ETF assets under management stood at $2.84 trillion as of August 31, 2024, second only to BlackRock Inc.’s $3.03 trillion, also according to Morningstar.
“When thinking about our actively managed funds, our portfolio managers can take investment risk strategically as they don’t have to overcome the hurdle of high fees to add value,” Greg Davis, Vanguard president and chief investment officer, said in a statement.
The long-term trend of flows shifting to ETFs from mutual funds also continued in 2024. Mutual funds ended the year with $388 billion in outflows via Morningstar, as investors have been moving away from the generally higher-cost investment vehicles for years.
Vanguard’s average expense ratio for index funds, according to the firm, are:
Fixed income ETFs: 0.04%
Equity index ETFs: 0.05%
Equity index open-end funds: 0.05%
Fixed income index open-end funds: 0.05%
Vanguard announced expense ratio reductions in 2022 for some mutual funds and ETF share classes but not for as wide a swath of funds as in the current move.
Take a look at our comprehensive guide to the best and most popular information ebooks and products available today on Detoxing, Colon Cleansing, Weight Loss and Dating and Romance. They are all in one spot, easy to find and compere to make a quick selection for the product that best fits your needs or wants.
So browse through a category and make your preferred selection and come back here to read more choice articles and get a few more helpful tips on ways to help your enhancement.
As an Amazon Associate I earn from qualifying purchases. “saubiosaubiosuccess.com is a participant in third party affiliate and advertising programs; The Amazon Services LLC Associates Program, Awin network, and other affiliate advertising programs are designed to provide a means for sites to earn advertising fees and commissions by advertising and linking to products on other sites and on Amazon.com. Amazon and the Amazon logo are trademarks of Amazon.com, Inc, or its affiliates.”
We use anonymous cookies and various 3rd-party services to optimise and to offer you a better, more personalised, browsing experience with advanced accessibility enhancements.
Dismiss
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
