About share classes
Different share classes of funds are typically distinguished by varying expense ratios that reflect the differing costs of providing services to the holders of each share class. While shareholders in different share classes incur different costs, the fund’s objective, management, and underlying investments are identical in each class. This multiclass structure allows shareholders to enjoy economies of scale.
Vanguard offers different share classes for many of our funds:
ETF Shares
An exchange-traded share class of certain Vanguard index mutual funds. ETF Shares combine the benefits of indexing, such as low costs and broad market diversification, with the trading and pricing flexibility of individual stocks.
Investor Shares
Traditional shares for individual investors that typically feature low minimum initial investments.
Admiral™ Shares
A separate class of even lower-expense shares available to Vanguard investors whose accounts meet the minimum-balance or account-balance and tenure requirements. Created to recognize and encourage the cost savings stemming from large, long-standing investment accounts and to pass these savings on to the shareholders who generate them. An Admiral Shares account can be opened with a minimum initial investment of as little as $10,000 or up to $100,000, depending on the fund.
Institutional Shares
Shares available to companies and organizations with account balances of $5 million or more. Not available on accounts receiving administrative or recordkeeping services.
Note: All funds are subject to market risk.
Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market with the assistance of a stockbroker. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.