Expense Ratio on Vanguard LifeStrategy Fund

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teelainen
Posts: 278
Joined: Fri Feb 01, 2019 1:17 am

Expense Ratio on Vanguard LifeStrategy Fund

Post by teelainen »

I am interested in this Vanguard LifeStrategy fund: Vanguard LifeStrategy Moderate Growth Fund (VSMGX)

I have a question about the expenses. On the Vanguard site, it says that the expense ratio is 0.13%

It also says that this fund simply contains 4 Vanguard funds inside, which are:

36.40% - Vanguard Total Stock Market Index Fund Investor Shares
27.60% - Vanguard Total Bond Market II Index Fund
24.20% - Vanguard Total International Stock Index Fund Investor Shares
11.80% - Vanguard Total International Bond Index Fund

So my question is this: Do I just pay 0.13% TOTAL for the entire fund? Or do I pay 0.13% PLUS the 4 other expense ratios for each of the other 4 funds inside?

I hope my question makes sense. Thanks.
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fortfun
Posts: 2770
Joined: Tue Apr 19, 2016 7:31 pm

Re: Expense Ratio on Vanguard LifeStrategy Fund

Post by fortfun »

teelainen wrote: Sun Feb 17, 2019 11:27 pm I am interested in this Vanguard LifeStrategy fund: Vanguard LifeStrategy Moderate Growth Fund (VSMGX)

I have a question about the expenses. On the Vanguard site, it says that the expense ratio is 0.13%

It also says that this fund simply contains 4 Vanguard funds inside, which are:

36.40% - Vanguard Total Stock Market Index Fund Investor Shares
27.60% - Vanguard Total Bond Market II Index Fund
24.20% - Vanguard Total International Stock Index Fund Investor Shares
11.80% - Vanguard Total International Bond Index Fund

So my question is this: Do I just pay 0.13% TOTAL for the entire fund? Or do I pay 0.13% PLUS the 4 other expense ratios for each of the other 4 funds inside?

I hope my question makes sense. Thanks.
.13 Total.
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jhfenton
Posts: 4670
Joined: Sat Feb 07, 2015 11:17 am
Location: Ohio

Re: Expense Ratio on Vanguard LifeStrategy Fund

Post by jhfenton »

teelainen wrote: Sun Feb 17, 2019 11:27 pm So my question is this: Do I just pay 0.13% TOTAL for the entire fund? Or do I pay 0.13% PLUS the 4 other expense ratios for each of the other 4 funds inside?

I hope my question makes sense. Thanks.
As fortfun said, you pay 0.13% in total.

Funds that own other funds are required to report the proportional share of underlying fund expenses in their own expense ratios. They are referred to as "acquired fund fees."
robertalpert
Posts: 455
Joined: Wed Aug 22, 2007 10:09 pm

Re: Expense Ratio on Vanguard LifeStrategy Fund

Post by robertalpert »

The expense ratio is a weighted average of the component funds. But I wander about the fact that the underlying funds have "investor" level ERs. With those investor level funds now closed and replaced with admiral level funds; Anyone venture a guess about when will life strategy will lower its ER based on admiral level?
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Wiggums
Posts: 2960
Joined: Thu Jan 31, 2019 8:02 am

Re: Expense Ratio on Vanguard LifeStrategy Fund

Post by Wiggums »

The ER is .13 Total
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