Vanguard Trims 10 ETF Expense Ratios

February 26, 2019

Vanguard announced today it would be shaving basis points off of the expense ratios of 10 of its top funds. The cuts range from 1 to 2 basis points, but that can be a hefty cut, as the most expensive fund in the group only charges 0.14%.

These ETFs include mostly international equity funds, but also a few bond funds.

The table below outlines the cost reduction for each fund:

 

Fund Ticker Old Expense Ratio % New Expense Ratio % AUM ($B)
Vanguard Emerging Markets Stock ETF VWO 0.14 0.12 62.0
Vanguard FTSE All-World ex-US ETF VEU 0.11 0.09 22.7
Vanguard High Dividend Yield ETF VYM 0.08 0.06 22.5
Vanguard Total International Bond ETF BNDX 0.11 0.09 15.9
Vanguard FTSE Europe ETF VGK 0.10 0.09 13.6
Vanguard Total World Stock ETF VT 0.10 0.09 13.0
Vanguard Total International Stock ETF VXUS 0.11 0.09 11.6
Vanguard FTSE All-World ex-US Small-Cap ETF VSS 0.13 0.12 5.5
Vanguard Tax-Exempt Bond ETF VTEB 0.09 0.08 4.2
Vanguard FTSE Pacific ETF VPL 0.10 0.09 4.0

 

“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 ETF share class of these ten funds is now lower than their Admiral share class counterparts,” Vanguard said in a press release.

The ETF industry has been the battleground for a vicious fee war, particularly when it comes to cap-weighted core asset classes, with expense ratios for some funds falling as low as 0.03%.

Contact Heather Bell at [email protected]

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