Discover how our expense ratio reductions are creating lasting impact for your clients

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Discover how our expense ratio reductions are creating lasting impact for your clients

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February 2, 2026

Vanguard begins 2026 with a major milestone: Since February 1, 2025, our expense ratio reductions are on track to deliver more than half a billion dollars to investors—the largest period of cost savings in our history. In 2026 alone, we expect to deliver nearly $250 million1 in savings, once again setting the standard for low-cost, high-performing funds for investors. Building on this momentum, our 0.06% asset-weighted average expense ratio2 ranks among the lowest in the industry, underscoring our longstanding cost leadership across asset classes and investment styles.

Over the past 50 years, we have consistently lowered costs for investors, and that focus supports better long-term outcomes for the people we serve. The latest reductions continue this decades-long tradition.

 

A historic achievement

The reductions over the last year reflect a disciplined approach to scale and efficiency. These actions represent one of the most meaningful periods of value delivered in our history. Every basis point matters, and the ongoing commitment to lowering costs reinforces our long-held belief that investors deserve to keep more of what they earn.

“Vanguard is investor-owned3—we have no outside stockholders or private owners profiting from our clients. These fee reductions—set to deliver more than half a billion dollars in savings across 2025 and 2026—are a clear expression of our purpose and commitment to our clients as owners,” said Salim Ramji, Vanguard’s chief executive officer. “When investors keep more of what they earn, the benefits compound over the long term, helping our clients achieve their most important financial goals.” 

 

 

 

Reductions that reach across markets

The 2026 updates apply to 84 mutual fund and ETF share classes across 53 funds, spanning equity, bond, money market, and fixed income. The cost reductions are strategically implemented where they can have the greatest long‑term impact.

Fixed income cost advantage

Cost efficiency is especially important in fixed income, where even small differences can influence outcomes over time. Our fixed income lineup reflects that strength, with 89% of Vanguard fixed income ETFs now ranked in the lowest-cost deciles of their peer groups and 100% of active fixed income ETFs still priced in the lowest-cost decile4, demonstrating exceptional cost leadership across the category.

Equity cost improvements

The latest updates reach across our U.S. and international strategies, covering large-, mid-, and small-cap funds. Lower costs across core strategies like Vanguard Growth, Vanguard Value, FTSE Emerging Markets, Vanguard Dividend Appreciation, and Vanguard High Dividend Yield enhance the value we deliver to investors. With the 2026 reductions, our equity lineup reflects that strength and its impact, with 83% of Vanguard equity ETFs now ranking in the lowest-cost deciles of their peer groups.4

 

Ticker Vanguard fund Share class Asset class Management style Prior expense ratio New expense ratio Reduction
VBIL 0-3 Month Treasury Bill ETF ETF Bond Index 0.07% 0.06% –0.01%
VBAIX Balanced Index Fund Institutional Balanced/Diversified Index 0.06% 0.04% –0.02%
VTEC California Tax-Exempt Bond ETF ETF Bond Index 0.08% 0.06% –0.02%
VIG Dividend Appreciation ETF ETF Equity Index 0.05% 0.04% –0.01%
VGIVX Emerging Markets Government Bond Index Fund Purchase fee: 0.75% Institutional Bond Index 0.13% 0.08% –0.05%
VEMIX Emerging Markets Stock Index Fund Institutional Equity Index 0.09% 0.06% –0.03%
VEMRX Emerging Markets Stock Index Fund Institutional Plus Equity Index 0.07% 0.05% –0.02%
VEMPX Extended Market Index Fund Institutional Plus Equity Index 0.04% 0.035% –0.005%
VIEIX Extended Market Index Fund Institutional Equity Index 0.05% 0.04% –0.01%
VSS FTSE All-World ex-US Small-Cap ETF ETF Equity Index 0.07% 0.06% –0.01%
VFSNX FTSE All-World ex-US Small-Cap Index Fund Institutional Equity Index 0.1% 0.08% –0.02%
VWO FTSE Emerging Markets ETF ETF Equity Index 0.07% 0.06% –0.01%
VFTAX FTSE Social Index Fund Admiral Equity Index 0.13% 0.11% –0.02%
VFTNX FTSE Social Index Fund Institutional Equity Index 0.07% 0.03% –0.04%
VUG Growth ETF ETF Equity Index 0.04% 0.03% –0.01%
VIGIX Growth Index Fund Institutional Equity Index 0.04% 0.03% –0.01%
VYM High Dividend Yield ETF ETF Equity Index 0.06% 0.04% –0.02%
VBIMX Intermediate-Term Bond Index Fund Institutional Bond Index 0.04% 0.03% –0.01%
VBIUX Intermediate-Term Bond Index Fund Institutional Plus Bond Index 0.03% 0.02% –0.01%
VICBX Intermediate-Term Corporate Bond Index Fund Purchase fee: 0.25% Institutional Bond Index 0.04% 0.03% –0.01%
VIIGX Intermediate-Term Treasury Index Fund Institutional Bond Index 0.04% 0.03% –0.01%
VIGI International Dividend Appreciation ETF ETF Equity Index 0.1% 0.07% –0.03%
VYMI International High Dividend Yield ETF ETF Equity Index 0.17% 0.07% –0.1%
VIHAX International High Dividend Yield Index Fund Purchase fee: 0.25% Redemption fee: 0.25% Admiral Equity Index 0.17% 0.16% –0.01%
VV Large-Cap ETF ETF Equity Index 0.04% 0.03% –0.01%
VLISX Large-Cap Index Fund Institutional Equity Index 0.04% 0.03% –0.01%
VSCGX LifeStrategy Conservative Growth Fund Investor Balanced/Diversified Index 0.12% 0.1% –0.02%
VASGX LifeStrategy Growth Fund Investor Balanced/Diversified Index 0.14% 0.1% –0.04%
VASIX LifeStrategy Income Fund Investor Balanced/Diversified Index 0.11% 0.1% –0.01%
VSMGX LifeStrategy Moderate Growth Fund Investor Balanced/Diversified Index 0.13% 0.1% –0.03%
VBLLX Long-Term Bond Index Fund Purchase fee: 0.50% Institutional Bond Index 0.04% 0.03% –0.01%
VBLIX Long-Term Bond Index Fund Purchase fee: 0.50% Institutional Plus Bond Index 0.03% 0.02% –0.01%
VLCIX Long-Term Corporate Bond Index Fund Purchase fee: 1.00% Institutional Bond Index 0.04% 0.03% –0.01%
VLGIX Long-Term Treasury Index Fund Institutional Bond Index 0.04% 0.03% –0.01%
MGC Mega Cap ETF ETF Equity Index 0.07% 0.05% –0.02%
MGK Mega Cap Growth ETF ETF Equity Index 0.07% 0.05% –0.02%
VMGAX Mega Cap Growth Index Fund Institutional Equity Index 0.06% 0.05% –0.01%
VMCTX Mega Cap Index Fund Institutional Equity Index 0.06% 0.05% –0.01%
MGV Mega Cap Value ETF ETF Equity Index 0.07% 0.05% –0.02%
VMVLX Mega Cap Value Index Fund Institutional Equity Index 0.06% 0.05% –0.01%
VO Mid-Cap ETF ETF Equity Index 0.04% 0.03% –0.01%
VOT Mid-Cap Growth ETF ETF Equity Index 0.07% 0.05% –0.02%
VMCIX Mid-Cap Index Fund Institutional Equity Index 0.04% 0.03% –0.01%
VMCPX Mid-Cap Index Fund Institutional Plus Equity Index 0.03% 0.02% –0.01%
VOE Mid-Cap Value ETF ETF Equity Index 0.07% 0.05% –0.02%
VMBSX Mortgage-Backed Securities Index Fund Admiral Bond Index 0.06% 0.04% –0.02%
VMBIX Mortgage-Backed Securities Index Fund Institutional Bond Index 0.04% 0.02% –0.02%
VONE Russell 1000 ETF ETF Equity Index 0.07% 0.06% –0.01%
VONG Russell 1000 Growth ETF ETF Equity Index 0.07% 0.06% –0.01%
VRGWX Russell 1000 Growth Index Fund Institutional Equity Index 0.06% 0.05% –0.01%
VRNIX Russell 1000 Index Fund Institutional Equity Index 0.06% 0.05% –0.01%
VONV Russell 1000 Value ETF ETF Equity Index 0.07% 0.06% –0.01%
VRVIX Russell 1000 Value Index Fund Institutional Equity Index 0.06% 0.05% –0.01%
VTWO Russell 2000 ETF ETF Equity Index 0.07% 0.06% –0.01%
VTWG Russell 2000 Growth ETF ETF Equity Index 0.1% 0.06% –0.04%
VRTGX Russell 2000 Growth Index Fund Institutional Equity Index 0.07% 0.05% –0.02%
VRTIX Russell 2000 Index Fund Institutional Equity Index 0.07% 0.05% –0.02%
VTWV Russell 2000 Value ETF ETF Equity Index 0.10% 0.06% –0.04%
VRTVX Russell 2000 Value Index Fund Institutional Equity Index 0.07% 0.05% –0.02%
VTHR Russell 3000 ETF ETF Equity Index 0.07% 0.06% –0.01%
VRTTX Russell 3000 Index Fund Institutional Equity Index 0.07% 0.05% –0.02%
VBITX Short-Term Bond Index Fund Institutional Bond Index 0.04% 0.03% –0.01%
VBIPX Short-Term Bond Index Fund Institutional Plus Bond Index 0.03% 0.02% –0.01%
VSTBX Short-Term Corporate Bond Index Fund Institutional Bond Index 0.04% 0.03% –0.01%
VTSPX Short-Term Inflation-Protected Securities Index Fund Institutional Bond Index 0.03% 0.02% –0.01%
VTES Short-Term Tax-Exempt Bond ETF ETF Bond Index 0.06% 0.05% –0.01%
VSBIX Short-Term Treasury Index Fund Institutional Bond Index 0.04% 0.03% –0.01%
VB Small-Cap ETF ETF Equity Index 0.05% 0.03% –0.02%
VBK Small-Cap Growth ETF ETF Equity Index 0.07% 0.05% –0.02%
VSGIX Small-Cap Growth Index Fund Institutional Equity Index 0.06% 0.05% –0.01%
VSCIX Small-Cap Index Fund Institutional Equity Index 0.04% 0.03% –0.01%
VSCPX Small-Cap Index Fund Institutional Plus Equity Index 0.03% 0.02% –0.01%
VBR Small-Cap Value ETF ETF Equity Index 0.07% 0.05% –0.02%
VSIIX Small-Cap Value Index Fund Institutional Equity Index 0.06% 0.05% –0.01%
VTMFX Tax-Managed Balanced Fund Admiral Balanced/Diversified Index 0.09% 0.05% –0.04%
VTCLX Tax-Managed Capital Appreciation Fund Admiral Equity Index 0.09% 0.05% –0.04%
VTCIX Tax-Managed Capital Appreciation Fund Institutional Equity Index 0.06% 0.03% –0.03%
VTMSX Tax-Managed Small-Cap Fund Admiral Equity Index 0.09% 0.05% –0.04%
VTSIX Tax-Managed Small-Cap Fund Institutional Equity Index 0.06% 0.03% –0.03%
VTIIX Total International Bond II Index Fund Investor Bond Index 0.13% 0.11% –0.02%
VTIFX Total International Bond Index Fund Institutional Bond Index 0.06% 0.03% –0.03%
VTSMX Total Stock Market Index Fund Investor Equity Index 0.14% 0.06% –0.08%
VTV Value ETF ETF Equity Index 0.04% 0.03% –0.01%
VIVIX Value Index Fund Institutional Equity Index 0.04% 0.03% –0.01%

 

Why lower costs matter

Lower expenses help investors keep a greater share of their returns, and the benefits of lower costs can compound year after year. This improves long-term outcomes for investors across different market environments, investment goals, and time horizons. Whether someone is saving for retirement, managing a pension plan, building global diversification, or seeking reliable income, lower costs help investors keep more of their money working for their future.

 

A legacy of industry leadership

Since our founding more than 50 years ago, Vanguard has set the standard for driving down the cost of investing, lowering expense ratios more than 2,100 times. This influence is widely known as the “Vanguard effect,” where our industry presence often encourages other firms to reduce their fees, resulting in lower costs for all investors.

The 2026 reductions extend this legacy and demonstrate how disciplined cost management and strong performance continue to create broad, lasting value for investors. At Vanguard, lowering costs is not a one-time initiative. It is part of who we are, and we hope to continue doing so as we serve investors today and in the future.

 

 

1 Savings due to the reduction in expense ratios were calculated on a share class basis for each fund for which there is a Vanguard-initiated reduction. To estimate 2026 savings, 2025-year end AUM was multiplied by the 2026 reduced expense ratio. To estimate 2025 savings, each fund’s 2024 year‑end AUM was multiplied by its 2025 reduced expense ratio. The total estimated savings for investors holding these funds in 2024 and 2025 is the sum of these two amounts.

2 Asset-weighted average U.S. fund expenses, as a share of 2025 average net U.S. assets. Figures as of December 31, 2025.

3 Vanguard is owned by its funds, which are owned by Vanguard's fund shareholder clients. 

4 All competitor fund data sourced from Morningstar Direct as of November 2025. The combination of Morningstar Category, Investment Type, and Management Style define Vanguard’s “peer group.” Lowest decile expense ratios are calculated excluding Vanguard funds. Vanguard’s updated expense ratios (effective February 2, 2026) were compared to the lowest decile expense ratios in each “peer group.” Summing all that were less than or equal to the lowest decile expense ratio and dividing by total resulted in the percentage of funds in the lowest cost decile.

 

Vanguard is reducing expense ratios for certain share classes of some funds. There is no guarantee that any individual investor will save money due to the reductions in fund expense ratios. Not all fund share classes will have a reduced expense ratio and therefore not all investors will experience the estimated savings. Investors that purchase the relevant funds after the expense ratios have been reduced will not experience savings. Savings means future money not spent on expense ratios, and does not entail a rebate or deposit of any sort. Savings figures are estimates and should not be relied upon. Savings is based on data as of December 31, 2025; if other data is used, savings may differ. Estimated savings accrue to existing investors holding relevant share classes for 2025 and 2026. For illustrative purposes only. Past performance is not indicative of future results.

Visit vanguard.com to obtain a prospectus, or, if available, a summary prospectus. The prospectus contains investment objectives, risks, charges, expenses, and other information; read and consider 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.

 

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