Vanguard Announces Expense Ratio Cuts for 17 Fund Shares

VALLEY FORGE, Pennsylvania., December 17, 2021 / PRNewswire / – Vanguard today announced lower expense ratios for 17 fund stocks, including nine fixed income ETFs. As a result, investors saved around $ 18.9 million.1 Since its founding in 1975, Vanguard has been a leader in reducing capital costs. For more than four decades, asset growth driven by investor cash flow and market returns, coupled with operational efficiency, has enabled Vanguard to deliver value to investors through fund expense ratios. lower.

This is the first series of Vanguard funds in fiscal year 2021-2022 to report expense ratio changes. Vanguard operates under a single regime, owned by investors2 structure in which shareholders of US funds own Vanguard funds, which in turn own Vanguard. This structure enables the company to return value to shareholders by reducing costs and reinvesting to improve capabilities, technology and the customer experience.

Fixed income ETFs lead the way
The continued adoption by investors of Vanguard’s fixed income ETFs has helped reduce expense ratios across a range of corporate credit, US Treasury and mortgage-backed ETFs. Low spending, transparent exposures, relative tax efficiency and liquidity have led to widespread acceptance of fixed income ETFs in recent years. This has resulted in continued growth in category assets both at Vanguard and across the industry. Vanguard’s lineup of U.S. bond ETFs attracted $ 75.7 billion in cash flow through October 31. (A basis point, referenced in the table below, is one hundredth of a percentage point.)

Changes to the expense ratio of the Vanguard Fixed Income ETF

Last name

Teleprinter

Tax 2020-
end of the year
expense rate

Tax 2021-
end of the year
expense rate

Change
based
points)

Vanguard Extended Life Treasury ETF

VED

0.07%

0.06%

-1

Vanguard Mid-Term Corporate Bond ETF

VCIT

0.05%

0.04%

-1

Vanguard Long Term Corporate Bond ETF

VCLT

0.05%

0.04%

-1

Vanguard Mortgage Backed Securities ETFs

VMBS

0.05%

0.04%

-1

Vanguard Short Term Corporate Bond ETF

VCSH

0.05%

0.04%

-1

Vanguard Mid-Term Treasury Bond ETF

VGIT

0.05%

0.04%

-1

Vanguard Long-Term Treasury Bond ETF

VGLT

0.05%

0.04%

-1

Vanguard Short-Term Treasury Bond ETF

VGSH

0.05%

0.04%

-1

Vanguard Total Corporate Bond Market ETF

VTC

0.05%

0.04%

-1

Reductions in expense ratios across Vanguard’s range of funds
In addition to the fixed income ETFs above, the expense ratio reductions cover Vanguard’s range of funds, index and asset products, ETF and mutual fund structures, and national, international and ESG strategies.

Changes in the expense ratio of balanced mutual funds and Vanguard ETFs

Last name

Teleprinter

Tax 2020-
end of the year
expense rate

Tax 2021-
end of the year
expense rate

Change
based
points)

Vanguard ESG U.S. Equity ETF

ESGV

0.12%

0.09%

-3

Vanguard ESG International Equity ETF

VSGX

0.15%

0.12%

-3

Vanguard Global Wellesley Income Fund Admiral Shares

VGYAX

0.31%

0.28%

-3

Vanguard Global Wellington Fund Investor Shares

VGWLX

0.44%

0.42%

–2

Vanguard Global Wellington Fund Admiral Shares

VGWAX

0.34%

0.29%

–5

Vanguard Explorer Fund Value

VEVFX

0.64%

0.52%

–12

Admiral Vanguard Equity International Growth Fund

VWILX

0.33%

0.32%

-1

Vanguard International Growth Fund Investor Shares

VIGX

0.44%

0.43%

-1

About Avant-garde
Vanguard is one of the world’s largest investment management firms. From October 31, 2021, Vanguard managed $ 8.4 trillion in global assets. The company, headquartered in Valley Forge, Pennsylvania, offers 418 funds to its more than 30 million investors worldwide. For more information, visit vanguard.com.

The asset and cash flow figures are at October 31, 2021 unless otherwise stated.

1 The estimated savings for the identified funds are the difference between past and current expense ratios multiplied by the Average Assets Under Management (AUM). Average assets under management are based on the average daily assets in a month, which is then averaged over the 12 months of the year ending. August 31, 2021.

2 Vanguard is owned by the client, which means the U.S. shareholders of the fund own the funds, which in turn own Vanguard.

For more information on Vanguard funds, visit vanguard.com for a prospectus or, if available, a summary prospectus. The investment objectives, risks, costs, expenses and other important information are contained in the prospectus; read it and review it carefully before investing.

Vanguard ETF shares are not redeemable from the issuing fund except in very large aggregates worth millions of dollars. Instead, investors should buy and sell Vanguard ETF shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than the NAV when buying and receive less than the NAV when selling.

Any investment is subject to risk, including the possible loss of the money you invest. Investments in equities issued by non-US companies are subject to risks, including country / regional risk and currency risk. These risks are particularly high in emerging markets. Diversification does not guarantee a profit or protect against a loss.

Vanguard Marketing Corporation, distributor.

SOURCE Avant-garde

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