The Markets October 6, 2010

Vanguard Lowers Minimum Requirements for Admiral Shares

Vanguard says that by reducing the minimums for the ultra-low-cost Admiral Shares, nearly 2 million shareholders in 52 funds will benefit.
Reported by

Account balance minimums have been lowered for most retail clients to $10,000 (from $100,000) for Vanguard’s broad market stock and bond index funds, and to $50,000 (from $100,000) for most of Vanguard’s actively managed stock and bond funds.

The expense ratios for the Admiral Shares of Vanguard’s three broad market index funds – Total Stock Market, Total Bond Market, and Total International – range from 0.07% to 0.20%.  Vanguard says this allows investors to build a diversified portfolio covering the U.S. stock and bond markets, and the developed and emerging international stock markets, for less than comparable funds.

Over the next several months, Vanguard will automatically convert qualifying accounts to Admiral Shares. Qualifying clients may convert sooner by visiting Vanguard.com or by calling 1-877-662-7447. Share conversions within the same fund are tax-free.

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