Vanguard fights back on the war on fees

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.

This month alone has seen Fidelity expand its commission-free ETF offering as well fintech platform SoFi filing for the first zero-fee ETF in the US.

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

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