Last Friday, Vanguard issued another salvo in the ongoing ETF fee wars by cutting expenses on 21 of its ultra-low-cost funds, including eight of its ten largest ETFs.
The ETFs getting price cuts include some of the largest ETFs on the market today, including the $114 billion Vanguard Total Stock Market ETF (VTI) and the $112 billion Vanguard S&P 500 ETF (VOO), the third and fourth largest funds, respectively. VTI and VOO now each cost 0.03%, down from 0.04% apiece.
Other notable price drops include the $72 billion Vanguard FTSE Developed Markets ETF (VEA), whose expense ratio went from 0.07% to 0.05%; and the $66 billion Vanguard FTSE Emerging Markets ETF (VWO), whose expenses dropped from 0.14% to 0.12%.
Though the above price cuts don't make the Vanguard funds cheapest-in-class, they do match or at least bring them closer to striking distance of the least-expensive funds, which are offered by Schwab, State Street and J.P. Morgan.
Notably, the fee cut makes BND now the cheapest fixed income ETF on the market.
All the Vanguard ETFs getting price cuts are listed in the table below:
Source: FactSet; data as of 4/29/2019
Contact Lara Crigger at [email protected]