Vanguard lowers the cost of investing—again!

April 26, 2019

 

Today, Vanguard announced lower expense ratios for the ETF Shares of another eight funds. The new expense ratios are 1 to 2 basis points below the expense ratios of the respective funds' Admiral™ Shares. See the table below for a list of the Vanguard ETFs® with new expense ratios.

With these lower expense ratios, VOO and BND will also be the lowest-cost ETFs in their respective categories.*

Ticker Vanguard ETF® Previous expense ratio (bps) New expense ratio (bps) Savings (bps)
VEA FTSE Developed Markets 7 5 2
VUG Growth 5 4 1
VV Large-Cap 5 4 1
VO Mid-Cap 5 4 1
VOO S&P 500 4 3 1
BND Total Bond Market 5 3.5 1.5
VTI Total Stock Market 4 3 1
VTV Value 5 4 1

The growing size and scale of our funds have helped fuel operational efficiencies that lower our costs to serve clients, particularly ETF shareholders. As a result, the expense ratios of the ETF Shares of these eight funds are now lower than the expense ratios of their Admiral Shares counterparts.

Vanguard recently announced reduced expense ratios for ten other index ETFs. These expense ratio reductions are part of our continuing commitment to increase value for investors by lowering the cost and complexity of investing, and they account for approximately $70 million in savings for ETF shareholders. Over the past three years, Vanguard has reduced expense ratios across various share classes to save investors more than $500 million.**

The lower expense ratios for select ETF Shares relative to Admiral Shares of the same fund reflect the scale that has resulted from the significant adoption of Vanguard ETFs® In fact, Vanguard ETFs have attracted more cash flow over the past three years than the conventional shares of Vanguard mutual funds.

* Vanguard and Morningstar, Inc. as of December 31, 2018.

** Cumulative figure for all share classes from the 2015–16 fiscal year through the 2017–2018 fiscal year for the U.S.-domiciled funds. Estimated savings is the difference between prior and current expense ratios multiplied by average assets under management. Average AUM is based on daily average assets during a month, which are then averaged over the 12 months of the fiscal year.

Notes:

  • For more information about Vanguard funds or Vanguard ETFs, visit advisors.vanguard.com to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.
  • 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 and hold those shares in a brokerage account. 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.
  • All investing is subject to risk, including possible loss of principal.
 

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