Vanguard announces its biggest fee reduction ever, impacting 87 funds and 168 share classes with an average 20% cut. This move, saving investors $350 million annually, reinforces Vanguard's commitment to low-cost investing.
Vanguard , the prominent asset management firm, announced sweeping fee reductions for 168 share classes across 87 mutual funds and exchange-traded funds (ETFs) on Monday. This move solidifies Vanguard 's position as a cost-effective investment option for individuals. The average fee reduction across the impacted share classes amounts to 20%, totaling an estimated $350 million in savings for investors this year, based on current asset levels.
Vanguard CEO Salim Ramji emphasized the firm's commitment to reducing investment costs, stating, 'We're proud to build on Vanguard's legacy of lowering the costs of investing—which we have done more than 2,000 times since our founding—by announcing our largest ever set of expense ratio reductions. Lower costs enable investors to keep more of their returns, and those savings compound over time.' The fee reductions encompass a wide range of actively managed and index-based funds, spanning various asset classes including stocks, bonds, and commodities. Notably, the cuts extend to actively managed bond funds, like the VEGBX, which highlights Vanguard's strategic focus on this growing segment of the ETF industry. This move comes at a time when active fixed income is gaining traction within the ETF landscape. Vanguard positions its actively managed fixed income funds and ETFs with a weighted average expense ratio of 0.10%, significantly lower than the industry average of 0.53%. This competitive pricing strategy further strengthens Vanguard's appeal to investors seeking value.The history of Vanguard is marked by a consistent emphasis on fee reductions, a tradition established by its founder, Jack Bogle. CEO Salim Ramji, who assumed leadership in 2024 after a stint at rival BlackRock, appears to be continuing this legacy. This latest announcement underscores Vanguard's commitment to providing investors with cost-effective investment solutions and maintaining its reputation as a leader in the asset management industry
VANGUARD FEE REDUCTIONS INVESTORS Etfs MUTUAL FUNDS
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