Vanguard Posts Details on Latest Fee Cuts

By Ginger Szala

News February 01, 2022 at 01:46 PM

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Vanguard said Tuesday that it has cut expense ratios for seven actively managed mutual funds and one index ETF. This wave of reduced fees comes after a similar announcement in December.

The asset manager, which works with some $8.5 trillion in investments, says the latest reductions resulted in investor refunds of $4.4 million.

"The breadth and success of Vanguard's active franchise have contributed to asset growth and operational efficiencies, enabling the firm to drive down expense ratios across its active lineup," the firm said in a statement.

Vanguard added that Tuesday's news "represents the second of six rounds of annual prospectus updates in Vanguard's 2021-2022 fiscal-year reporting period, which runs from December [2021] to May [2022]."

Three active bond funds have reduced their expense ratios by five basis points each: the Vanguard Core Bond Fund Investor Shares, the Vanguard Emerging Markets Bond Fund Investor Shares and Vanguard Emerging Market Bond Fund Admiral Share. For the new fiscal year, their expense ratios will be 0.20%, 0.55% and 0.40% respectively.

In addition, the Vanguard Short-Term Inflation-Protected Securities ETF fees has been cut to 0.04% from 0.05%.

The other stock funds getting one basis point fee cuts include the firm's International Core Stock Fund Investor Shares (to 0.45%), International Core Stock Fund Admiral Shares (to 0.35%), Capital Opportunity Fund Investor Shares (to 0.43%) and Capital Opportunity Fund Admiral Shares (to 0.36%).