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Vanguard Slashes Fees, Saving Investors $350 Million in 2025

2/3/2025

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Summary

Story summary

Vanguard has implemented its largest fee reductions ever, cutting expense ratios on 168 mutual fund and ETF share classes.
Investors will save over $350 million in 2025, with fee reductions between 1 to 6 basis points.
The average asset-weighted fee at Vanguard is now 0.07%, well below the industry average of 0.44%.
This initiative strengthens Vanguard's dedication to low-cost investing and boosts its competitive position in asset management.

History

Historical Context

Vanguard's fee reductions echo the industry's shift toward low-cost investing, a trend gaining momentum since the 1970s. The rise of index funds and ETFs challenged high-fee mutual funds, prompting companies to lower expenses. Vanguard's move reinforces its commitment to affordability, reflecting a broader market evolution.

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Story summary

Vanguard has implemented its largest fee reductions ever, cutting expense ratios on 168 mutual fund and ETF share classes.
Investors will save over $350 million in 2025, with fee reductions between 1 to 6 basis points.
The average asset-weighted fee at Vanguard is now 0.07%, well below the industry average of 0.44%.
This initiative strengthens Vanguard's dedication to low-cost investing and boosts its competitive position in asset management.

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