Vanguard has cut fees across its European passive mutual fund range which includes 22 mutual funds and one ETF Ireland-domiciled fund.
The move is part of the company’s strategy to broaden the presence in Europe.
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Vanguard believes that this will help them increase scale and improve operating efficiencies.
The fee cuts will see the Vanguard FTSE emerging markets ETF’s total exchange ratio plunge from 45 to 29 basis points.
The fee changes for the mutual fund range and the Vanguard FTSE Emerging Market ETF will take effect from 3 December 2013. These changes will affect euro, dollar, Swiss franc and Japanese yen share classes across a range of equity and fixed income mutual funds.
The firm has lowered the total expense ratio on the £4.1bn Vanguard Emerging Markets Stock Index fund from 0.55% to 0.4%, while the Vanguard Global Bond Index tracker has been lowered from 0.25% to 0.2%.
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By GlobalDataThese funds have almost £5 billion in assets so this change will benefit a lot of investors.
Vanguard said: "As we continue to establish our presence in the European market, we are now able to offer a number of our funds at even lower cost. Costs have a significant impact on investment performance over the long term, and the less you spend on fees, the more you keep of your returns."
Tom Rampulla, managing director for Vanguard in Europe, said the cuts could be followed by more as its traditional funds and ETFs grow.
