Vanguard Trims 10 ETF Expense Ratios

Index fund giant fires the most recent shot in the ETF fee wars. 

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Reviewed by: Heather Bell
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Edited by: Heather Bell

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:

 

FundTickerOld Expense Ratio %New Expense Ratio %AUM ($B)
Vanguard Emerging Markets Stock ETFVWO0.140.1262.0
Vanguard FTSE All-World ex-US ETFVEU0.110.0922.7
Vanguard High Dividend Yield ETFVYM0.080.0622.5
Vanguard Total International Bond ETFBNDX0.110.0915.9
Vanguard FTSE Europe ETFVGK0.100.0913.6
Vanguard Total World Stock ETFVT0.100.0913.0
Vanguard Total International Stock ETFVXUS0.110.0911.6
Vanguard FTSE All-World ex-US Small-Cap ETFVSS0.130.125.5
Vanguard Tax-Exempt Bond ETFVTEB0.090.084.2
Vanguard FTSE Pacific ETFVPL0.100.094.0

 

“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]

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.