ETFs’ major selling points are its low fees. This is to compete with the higher costs required for actively managed investment products. But ETF issuers are beginning to compete against one another to see who can offer the lowest fees or even offer no fees at all.
Vanguard has cut its fees for 10 ETFs to compete with the ever-reducing costs to own an ETF. Second only to BlackRock, Vanguard is one of the leading ETF issuers with nearly $950bn in assets under management.
Reducing the fees by one or two basis points, the ETF giant appears to be encouraging traffic in to the ETF market.
|ETF||Previous fee||New fee|
|Vanguard FTSE Emerging Markets ETF (VWO)||14bps||12bps|
|Vanguard FTSE Europe ETF (VGK)||10bps||9bps|
|Vanguard FTSE Pacific ETF (VPL)||10bps||9bps|
|Vanguard FTSE All-World ex-US ETF (VEU)||11bps||9bps|
|Vanguard FTSE All-World ex-US Small-Cap ETF (VSS)||13bps||12bps|
|Vanguard High Dividend Yield (VHDYX)||8bps||6bps|
|Vanguard Total World Stock ETF (VT)||10bps||9bps|
|Vanguard Tax-Exempt Bond ETF (VTEB)||9bps||8bps|
|Vanguard Total International Bond ETF (BNDX)||11bps||9bps|
|Vanguard Total International Stock ETF (VXUS)||11bps||9bps|