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]