Vanguard Reports Expense Ratio Reductions for 17 Fund Shares
Investors saved estimated $18.9 Million
VALLEY FORGE, Pa., Dec. 17, 2021 /PRNewswire/ -- Vanguard reported lower expense ratios today for 17 fund shares, including nine fixed income ETFs. As a result, investors saved an estimated $18.9 million.1 Since its founding in 1975, Vanguard has been a leader in lowering the cost of investing. For more than four decades, asset growth driven by investor cash flows and market returns, coupled with operational efficiencies, has enabled Vanguard to return value to investors through lower fund expense ratios.
This is the first round of Vanguard funds in the 2021–2022 fiscal-year period to report expense ratio changes. Vanguard operates under a unique, investor-owned2 structure in which U.S. fund shareholders own the Vanguard funds, which in turn own Vanguard. This structure enables the firm to return value to shareholders through lower costs and reinvesting to improve capabilities, technology, and client experience.
Fixed income ETFs lead the way
Investors' continued adoption of Vanguard fixed income ETFs contributed to expense ratio reductions across a range of corporate credit, U.S. Treasury, and mortgage-backed securities ETFs. Low expenses, transparent exposures, relative tax efficiency, and liquidity have driven the widespread acceptance of fixed income ETFs in recent years. That has resulted in continued growth in assets for the category both at Vanguard and across the industry. Vanguard's U.S. bond ETF lineup has attracted $75.7 billion in cash flows through October 31. (A basis point, referenced in the table below, is one-hundredth of a percentage point.)
Vanguard fixed income ETF expense ratio changes
Name |
Ticker |
2020 fiscal- |
2021 fiscal- |
Change (in |
Vanguard Extended Duration Treasury ETF |
EDV |
0.07% |
0.06% |
–1 |
Vanguard Intermediate-Term Corporate Bond ETF |
VCIT |
0.05% |
0.04% |
–1 |
Vanguard Long-Term Corporate Bond ETF |
VCLT |
0.05% |
0.04% |
–1 |
Vanguard Mortgage-Backed Securities ETF |
VMBS |
0.05% |
0.04% |
–1 |
Vanguard Short-Term Corporate Bond ETF |
VCSH |
0.05% |
0.04% |
–1 |
Vanguard Intermediate-Term Treasury Bond ETF |
VGIT |
0.05% |
0.04% |
–1 |
Vanguard Long-Term Treasury Bond ETF |
VGLT |
0.05% |
0.04% |
–1 |
Vanguard Short-Term Treasury Bond ETF |
VGSH |
0.05% |
0.04% |
–1 |
Vanguard Total Corporate Bond Market ETF |
VTC |
0.05% |
0.04% |
–1 |
Expense ratio reductions across Vanguard's fund lineup
In addition to the fixed income ETFs above, expense ratio reductions span Vanguard's fund lineup, across index and active products, ETF and mutual fund structures, and domestic, international, and ESG-focused strategies.
Vanguard equity and balanced mutual fund and ETF expense ratio changes
Name |
Ticker |
2020 fiscal- |
2021 fiscal- |
Change (in |
Vanguard ESG U.S. Stock ETF |
ESGV |
0.12% |
0.09% |
–3 |
Vanguard ESG International Stock ETF |
VSGX |
0.15% |
0.12% |
–3 |
Vanguard Global Wellesley Income Fund Admiral Shares |
VGYAX |
0.31% |
0.28% |
–3 |
Vanguard Global Wellington Fund Investor Shares |
VGWLX |
0.44% |
0.42% |
–2 |
Vanguard Global Wellington Fund Admiral Shares |
VGWAX |
0.34% |
0.29% |
–5 |
Vanguard Explorer Fund Value |
VEVFX |
0.64% |
0.52% |
–12 |
Vanguard International Growth Fund Admiral Shares |
VWILX |
0.33% |
0.32% |
–1 |
Vanguard International Growth Fund Investor Shares |
VWIGX |
0.44% |
0.43% |
–1 |
About Vanguard
Vanguard is one of the world's largest investment management companies. As of October 31, 2021, Vanguard managed $8.4 trillion in global assets. The firm, headquartered in Valley Forge, Pennsylvania, offers 418 funds to its more than 30 million investors worldwide. For more information, visit vanguard.com.
Asset and cash-flow figures are as of October 31, 2021 unless otherwise noted.
1 Estimated savings for the identified funds is the difference between prior and current expense ratios multiplied by the average assets under management (AUM). Average AUM is based on daily average assets during a month, which are then averaged over the 12 months of the fiscal year ending August 31, 2021.
2 Vanguard is client-owned, meaning the U.S. fund shareholders own the funds, which in turn own Vanguard.
For more information about Vanguard funds, visit vanguard.com to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.
Vanguard ETF Shares are not redeemable with the issuing fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.
All investing is subject to risk, including the possible loss of the money you invest. Investments in stocks issued by non-U.S. companies are subject to risks including country/regional risk and currency risk. These risks are especially high in emerging markets. Diversification does not ensure a profit or protect against a loss.
Vanguard Marketing Corporation, Distributor.
SOURCE Vanguard
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