Vanguard Cuts Costs on Six Funds

Vanguard has lowered costs on six index funds.

According to the announcement, six Vanguard stock index funds have added “ultra-low-cost Admiral Shares,” providing shareholders with what Vanguard termed “expense savings of more than 50% over the corresponding Investor Shares in some cases”.

The new shares are available for four domestic stock index funds, featuring estimated expense ratios ranging from 0.10% to 0.21%, and two international stock index funds with projected expense ratios of 0.12% and 0.18%.

A total of 74 Vanguard funds now offer Admiral Shares, including 38 index funds. To qualify for Admiral Shares of Vanguard index funds, shareholders need an account balance of $10,000 or more, while Investor Shares require a balance of $3,000.

Vanguard says it will automatically convert qualifying Investor Shares into the lower-cost Admiral Shares of the same fund over the next several months. Clients may also convert qualifying shares on Vanguard.com. Share conversions within the same fund are tax-free.

The impacted funds are listed on the following page.

 

Fund

Admiral Shares
Estimated Expense Ratio

Investor Shares
Expense Ratios

Savings

Basis
Points

Savings

%

Domestic Stock Index Funds

    

Vanguard Mid-Cap Growth Index Fund

0.10%

0.26%

16

38%

Vanguard Mid-Cap Value Index Fund

0.10%

0.26%

16

38%

Vanguard Small-Cap Growth Index Fund

0.10%

0.26%

16

38%

Vanguard Small-Cap Value Index Fund

0.21%

0.37%

16

57%

International Stock Index Funds

    

Vanguard Developed Markets Index Fund

0.12%

0.22%

10

55%

Vanguard FTSE All World EX-US Index Fund

0.18%

0.35%

17

51%

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