Vanguard has disclosed plans to reduce expense ratios on 84 mutual fund and exchange-traded share classes across 53 funds.
The company estimates these changes will result in approximately $250m in fee reductions for investors in 2026.
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In the last two years, Vanguard has implemented a broad range of fee decreases across most of its investment products.
The cumulative savings for investors over this period is reported to be nearly $600m, the largest combined cost reduction over two years in the firm’s history.
Following these changes, the average expense ratio for Vanguard’s product range across all asset categories and investment styles stands at 0.06%.
The company further highlighted that a proportion of its funds have performed above their peer group averages over the past decade, with 84% of its mutual funds and 88% of its active fixed income funds meeting this criterion.
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By GlobalDataAmong the products affected are the company’s range of US equity 9-box funds including the Growth ETF (VUG) and Value ETF (VTV) as well as large-, mid-, and small-cap growth, value, and blend funds.
Fee reductions also extend to the FTSE Emerging Markets ETF (VWO) and dividend-oriented ETFs such as the Dividend Appreciation ETF (VIG) and High Dividend Yield ETF (VYM).
Vanguard CEO Salim Ramji said: “Vanguard is investor-owned-we have no outside stockholders or private owners profiting from our clients. These fee reductions-set to deliver more than half a billion dollars in savings across 2025 and 2026-are a clear expression of our purpose and commitment to our clients as owners.
“When investors keep more of what they earn, the benefits compound over the long term, helping our clients achieve their most important financial goals.”
In December, a Bloomberg report, citing Vanguard Latin America head Juan Hernandez, said that the company will triple the size of its Miami team from five to 15 over the next five years.
According to the report, the company is also weighing expansion of its offshore services in US locations including California and Houston.
