Vanguard Lowers Expense Ratios Across 53 ETFs and Mutual Funds

You tin find archetypal nonfiction present WealthManagement. Subscribe to our escaped regular WealthManagement newsletters.

Vanguard announced it has lowered disbursal ratios crossed 53 funds, totaling astir $250 cardinal successful interest reductions for 2026. The outgo reductions impact 84 communal money and ETF stock classes, resulting successful an mean interest chopped of 27% for the funds involved.

Vanguard has agelong focused connected reducing fees for its money line-up, including cutting $350 cardinal successful disbursal ratio reductions successful 2025 successful a determination that affected 43% of its U.S.-based communal money and ETF stock classes. The steadfast claims the past 2 rounds of interest reductions totaled astir $600 million—its largest ever two-year outgo cut.

“Vanguard is investor-owned—we person nary extracurricular stockholders oregon backstage owners profiting from our clients. These interest reductions—set to present much than fractional a cardinal dollars successful savings crossed 2025 and 2026—are a wide look of our intent and committedness to our clients arsenic owners,” Vanguard CEO Salim Ramji said successful a statement. “When investors support much of what they earn, the benefits compound implicit the agelong term, helping our clients execute their astir important fiscal goals.”

A probe insubstantial published past twelvemonth by Morningstar recovered that implicit the past decade, the cheapest banal and enslaved funds successful their categories delivered mean returns of 10.3%, which were implicit 2 percent points higher than those of the astir costly funds. Nevertheless, arsenic a group, plus managers slowed their fee-cutting campaigns successful caller years, with the mean money interest declining conscionable 2 ground points successful 2024. Vanguard, however, maintained the borderline connected fees, with an mean interest of 0.007% compared with the equal-weighted mean money interest of 0.34% successful 2024. That was earlier past year’s interest reductions were accounted for. 

The existent reductions volition interaction Vanguard’s equity 9-box funds, including its flagship Growth ETF (VUG) and Value ETF (VTV), its FTSE Emerging Market ETF (VWO), its Dividend Appreciation ETF (VIG) and its High Dividend Yield ETF (VYM), among others.

Vanguard’s concern products present transportation an mean disbursal ratio of 0.06%. Over three-fourths of Vanguard ETFs (85%) are priced successful the lowest decile for their category.