Vanguard, one of the largest asset managers, has announced significant fee reductions across nearly 100 funds, including exchange-traded funds (ETFs) with billions of dollars in assets. The company said it will save investors approximately $350 million this year.
The move is part of Vanguard’s ongoing effort to lower costs and make investing more affordable for its clients. It reduces fees on 87 different funds and 168 total share classes, with an average fee cut of 20%. This is the largest fee cut in Vanguard’s history.
The reductions apply to a wide range of products, including actively managed and index-based funds, as well as stocks, bonds, and commodities. Some notable funds affected by the cuts include the Russell 1000 Value ETF, International High Dividend Yield ETF, Emerging Markets Government Bond ETF, and Emerging Markets Bond Fund Admiral Shares.
Vanguard’s CEO Salim Ramji stated that the fee reductions will enable investors to keep more of their returns over time. The company has a long history of reducing fees, dating back to its founder Jack Bogle, who pioneered the low-cost index fund approach.
This announcement comes less than a month after Vanguard agreed to pay $100 million to settle charges from the Securities and Exchange Commission related to disclosures around some of its retirement products.
Source: https://www.cnbc.com/2025/02/03/vanguard-cuts-fees-for-nearly-100-funds-including-etfs-with-billions-in-assets.html