Asset manager Vanguard is cutting the cost of investing across its fund lineup for the first time in nearly 50 years, estimating that investors will save over $350 million this year. The move, which takes effect on February 1, affects 87 funds and includes reductions in fees between one and six basis points.
The cuts apply to bond mutual funds, ETFs, U.S. equity, international equity, and money market funds, benefiting Vanguard’s clients. Lowering costs allows investors to keep more of their returns, a key strategy for the firm, according to CEO Salim Ramji.
Ramji had outlined plans last year to expand the company’s fixed-income offerings in response to growing market opportunities. Chief investment officer Greg Davis emphasized the importance of bonds in investors’ portfolios and noted that lower costs will help compound over time.
Founded by Jack Bogle in 1975, Vanguard is the world’s largest provider of ETFs, offering 428 funds worldwide, including 212 in the US. The company has significantly reduced investing costs more than 2,000 times since its inception.
Source: https://finance.yahoo.com/news/vanguard-slashes-fees-expects-investors-164635421.html