Vanguard Cuts Fees across range of Mutual Funds and ETFs

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Harmanic
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Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by Harmanic »

Announcing the largest fee cut in Vanguard history
February 03, 2025

Once again, Vanguard is lowering the cost of investing. Effective February 1, 2025, the firm reduced fees on 168 share classes across 87 funds. The fee reductions are expected to save investors more than $350 million this year alone.
https://corporate.vanguard.com/content/ ... story.html
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Vanguard's Largest ER Cuts in Its History

Post by Cocoa Beach Bum »

[This thread has been merged into this on-going discussion. Moderator Pops1860]

Details in Vanguard's press release: Announcing the largest fee cut in Vanguard history.

Some examples:
VEA 0.06% -> 0.03%
VXUS 0.08% -> 0.05%
VEU 0.07% -> 0.04%
VT 0.07% -> 0.06%
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Vanguard is the GOAT!

Post by hicabob »

[Thread merged into here --admin LadyGeek]

"The Jack Bogle-founded investing giant is lowering expense ratios for 168 share classes across 87 mutual funds and exchange-traded funds effective immediately, it said in a press release on Monday. The cuts mean Vanguard’s average asset-weighted fee is now just 0.07% for its $10 trillion under management, compared with 0.44% for the rest of the industry."

https://www.yahoo.com/finance/news/vang ... 16365.html
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Re: Vanguard is the GOAT!

Post by Mike Scott »

Less is more.
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VXUS ER down to 0.05

Post by BFT2003 »

[This thread has been merged into this on-going discussion. Moderator Pops1860]

Hi,

https://investor.vanguard.com/investmen ... ofile/vxus

Anyone see that as of today, Feb 3rd, 2025, the expense ratio for VXUS is down to 0.05 a drop of 2 bp?

This drops the ER of a 60/40 portfolio that's 40/20 US/International from 3.8 bp to 3.4 bp.

That's $3.40 a year for every $10,000 invested!

These days, I'll take any good investing news I can get!
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by up-and-to-the-right »

No VOO or VFIAX unfortunately.
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Re: VXUS ER down to 0.05

Post by Geologist »

Expense ratio cuts for many funds, including VXUS is already in a thread on this board.
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by stan1 »

I have to say my jaw dropped when I saw this, especially for things like the money market funds, longstanding state muni bond funds, S&P/Russell index ETFs, and international.

Great for people who use Vanguard funds/ETFs. A surprise, and I'd go further and say it is redemption for Tim Buckley unless there is some decision made recently that Tim didn't want to do. We know what the downside is for people who use Vanguard brokerage for customer service.
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by bogling »

VUSXX -.02%. Even better than it was over other options. And 100% state tax exempt per Vanguard in 2024.
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Re: Vanguard's Largest ER Cuts in Its History

Post by Rocky Mtn Man »

Good news!

Also:
Treasury Money Market: 0.09 --> 0.07

The Fidelity equivalent is 0.42%!!!!
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Re: Vanguard's Largest ER Cuts in Its History

Post by Cocoa Beach Bum »

Rocky Mtn Man wrote: Mon Feb 03, 2025 10:02 am Good news!

Also:
Treasury Money Market: 0.09 --> 0.07

The Fidelity equivalent is 0.42%!!!!
Yes. VUSXX (Vanguard Treasury Money Market Fund) 0.09% -> 0.07%
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by Bernmaster »

Great news! Now I really hope that the Vanguard Group Europe follows suit!
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by Dottie57 »

up-and-to-the-right wrote: Mon Feb 03, 2025 9:42 am No VOO or VFIAX unfortunately.
VFIAX is already 4/100 of 1 percent.
Last edited by Dottie57 on Mon Feb 03, 2025 10:40 am, edited 1 time in total.
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by White Coat Investor »

Love the trend, although it's been going on for decades. A few basis points every few years really adds up after a while. Now investing is basically free.
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by LadyGeek »

I merged hicabob's thread into the ongoing discussion.

(Thanks to the member who reported the post and provided a link to this thread.)
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by Cocoa Beach Bum »

I was hoping Vanguard might cut the ER of VOO (Vanguard S&P 500 ETF) from 0.03% to 0.02% in order to match SSgA's SPLG equivalent; but, alas, no such luck. Maybe it'll happen in the next round of cuts.
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by turtlebug »

Best news I've heard today! :sharebeer
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by Lyrrad »

Nice.

Looks like it drops my average expense ratio among all my investments by more than 14% to just under 5 basis points, primarily from VEA and VWO.

I roughly estimate that this will let me retire a week sooner than I would otherwise.
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by Leif »

Nice to see I'll save a few bucks on VTIP, Vanguard Short Term Inflation Protected ETF (4 -->3 bps)
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Vanguard Announces Fee Cuts

Post by ArtMan »

[This thread has been merged into this on-going discussion. Moderator Pops1860]

Heard this news on Bloomberg Radio this morning.

"Effective February 1, 2025, the firm reduced fees on 168 share classes across 87 funds. The fee reductions are expected to save investors more than $350 million this year alone."

Here's more from Vanguard: https://corporate.vanguard.com/content/ ... story.html (including more details and a video)

Examples from a few popular funds:
VBTLX -- prior expense ratio 0.05% / new expense ratio 0.04%
VXUS -- 0.08% / 0.05%
VUSXX -- 0.09% / 0.07%
VIG -- 0.06% / 0.05%
Last edited by Pops1860 on Mon Feb 03, 2025 11:33 am, edited 1 time in total.
Reason: Merged into on-going discussion.
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Re: Vanguard's Largest ER Cuts in Its History

Post by bmstrong »

Rocky Mtn Man wrote: Mon Feb 03, 2025 10:02 am Good news!

Also:
Treasury Money Market: 0.09 --> 0.07

The Fidelity equivalent is 0.42%!!!!
Yes. Adjusting my current plans going forward.
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by cupcakeswsprinkles »

A little disappointed that VOO did not match SPLG (exp ratio 0.02%) or the that mutual funds equivalents are more expensive than the VOO or VTI etfs. It is a small difference but the VTI equivalent at Fidelity is 0.015% for example.

Still, one thing that keeps me at Vanguard is the money market funds are a lot cheaper and perform a lot better than Fidelity + it does not feel Vanguard pushes me to get a margin account. It is good that the treasury fund got a cut.

One important thing Vanguard needs to match is TOTP standard security 2fa authentication that Fidelity has had since the middle of 2024.
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by bikefish »

From the wsj. Not sure if this has already been posted by someone else.

https://www.wsj.com/finance/investing/v ... _permalink
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by KEotSK66 »

I bought into VWUSX in November @ER=0.30, the ER is now 0.32.
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by Bagels »

If these fees get any lower, they’ll be paying us for the privilege of holding our funds.
At this point, I wish they would just improve the website. continue to improve the website.
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by msterrr »

Looks like all the international / ex-US funds except VTWAX got cuts. Was hoping for lower ER on VTWAX :|
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by Nyarlathotep »

cupcakeswsprinkles wrote: Mon Feb 03, 2025 11:10 am One important thing Vanguard needs to match is TOTP standard security 2fa authentication that Fidelity has had since the middle of 2024.
Absolutely, could not agree more. How hard would it be for them to simply mimic the way Schwab does it, where if they don't recognize your login they send a push notification to the Schwab app on your phone? Easy peasey, very secure, works everywhere. I can't imagine it would take a small team of developers (literally, maybe 2-3) more than a few weeks to implement such a straightforward security feature. What exactly is the Vanguard dev team working on so hard that they can't do simple, extremely useful stuff like this??
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by Feldman »

Nice!
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by student »

Wow. Would others such as Black Rock, Fidelity and State Street follow suit.
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by sunnywindy »

I manage a Donor Advised Fund through Vanguard. This fee reduction will allow us to donate thousands more to various charities! Yea! :sharebeer
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by sunnywindy »

msterrr wrote: Mon Feb 03, 2025 11:27 am Looks like all the international / ex-US funds except VTWAX got cuts. Was hoping for lower ER on VTWAX :|
Wrong. VTWAX got a 1 bsp cut! (it's good to be wrong! :D )

https://corporate.vanguard.com/content/ ... story.html
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by xxd091 »

Will this apply to U.K. Vanguard investors ?
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by cupcakeswsprinkles »

Nyarlathotep wrote: Mon Feb 03, 2025 11:27 am Absolutely, could not agree more. How hard would it be for them to simply mimic the way Schwab does it, where if they don't recognize your login they send a push notification to the Schwab app on your phone? Easy peasey, very secure, works everywhere. I can't imagine it would take a small team of developers (literally, maybe 2-3) more than a few weeks to implement such a straightforward security feature. What exactly is the Vanguard dev team working on so hard that they can't do simple, extremely useful stuff like this??
Top
My guess is they keep their dev team low to keep expenses low and being a firm from the 70s they likely have a lot of technical debt. Also, management is likely pushing mobile because they worry younger investors won't use mobile. All the changes they have been doing is to cut their costs.
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by sunnywindy »

xxd091 wrote: Mon Feb 03, 2025 12:16 pm Will this apply to U.K. Vanguard investors ?
xxd091
I do not believe so.
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by lazyday »

Less reason to own individual Treasuries, if you aren’t matching future spending needs such as with a TIPS ladder.

Short, intermediate, and long nominal Treasury ETFs are now at .03
Short term TIPS ETF now at .03

Active TIPS admiral fund is still at .10, but Schwab has an intermediate TIPS index ETF at .03, SCHP.
Last edited by lazyday on Mon Feb 03, 2025 1:16 pm, edited 1 time in total.
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by Feldman »

lazyday wrote: Mon Feb 03, 2025 12:32 pm Sweep account money market now at .07, no settlement delay
Is that correct? VMFXX at 0.11% is the sweep account, not VUSXX at 0.07%, unless I'm misunderstanding. Either way, a positive move for investors.
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by msterrr »

sunnywindy wrote: Mon Feb 03, 2025 12:13 pm
msterrr wrote: Mon Feb 03, 2025 11:27 am Looks like all the international / ex-US funds except VTWAX got cuts. Was hoping for lower ER on VTWAX :|
Wrong. VTWAX got a 1 bsp cut! (it's good to be wrong! :D )

https://corporate.vanguard.com/content/ ... story.html
VTWAX isn't mentioned anywhere at that link. I checked the Vanguard site VTWAX page though and it does look like ER has indeed dropped from 0.10% to 0.09%. VT has also dropped from 0.07% to 0.06%.
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by lazyday »

Feldman wrote: Mon Feb 03, 2025 12:39 pm
lazyday wrote: Mon Feb 03, 2025 12:32 pm Sweep account money market now at .07, no settlement delay
Is that correct? VMFXX at 0.11% is the sweep account, not VUSXX at 0.07%, unless I'm misunderstanding. Either way, a positive move for investors.
Thanks, you're right. Corrected the earlier post.
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by GoldStar »

msterrr wrote: Mon Feb 03, 2025 1:03 pm
sunnywindy wrote: Mon Feb 03, 2025 12:13 pm

Wrong. VTWAX got a 1 bsp cut! (it's good to be wrong! :D )

https://corporate.vanguard.com/content/ ... story.html
VTWAX isn't mentioned anywhere at that link. I checked the Vanguard site VTWAX page though and it does look like ER has indeed dropped from 0.10% to 0.09%. VT has also dropped from 0.07% to 0.06%.
I see both of these at the link. At the bottom the long table you need to click "show more" a couple of times to see them.
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by rkhusky »

I’ll take it, but it’s a minor change.
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by UpperNwGuy »

student wrote: Mon Feb 03, 2025 11:49 am Wow. Would others such as Black Rock, Fidelity and State Street follow suit.
State Street was already beating Vanguard on many of its SPDR ETFs. Which State Street funds do you wish would be lowered?
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Vanguard cuts fees

Post by Rybran »

[Thread merged into here --admin LadyGeek]

https://corporate.vanguard.com/content/ ... story.html
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by stan1 »

Nyarlathotep wrote: Mon Feb 03, 2025 11:27 am
they send a push notification to the Schwab app on your phone? Easy peasey, very secure, works everywhere. I can't imagine it would take a small team of developers (literally, maybe 2-3) more than a few weeks to implement such a straightforward security feature.
They do send a push notification to the mobile app now after entering username/password (as of a few weeks ago), but it is a yes/no not at TOTP code. Even on this forum we have many members who prefer not to use the Vanguard app on their mobile phone, but maybe this feature will convince a few more to do it.
Last edited by stan1 on Mon Feb 03, 2025 1:40 pm, edited 1 time in total.
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Re: Vanguard cuts fees

Post by GoldStar »

Best to do a search before starting a new post. This topic is being discussed here:
viewtopic.php?t=448788#p8237884
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by LadyGeek »

I merged Rybran's thread into the ongoing discussion.

(Thanks to the member who reported the post and provided a link to this thread.)
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by fetch5482 »

up-and-to-the-right wrote: Mon Feb 03, 2025 9:42 am No VOO or VFIAX unfortunately.
VOO and VTI are already well priced in my opinion. I was hoping to see VNQ on the list however.
That said, as someone who puts 20% in international and keeps emergency funds in VUSXX, this cut is quite substantial for me.
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by greenway23 »

fetch5482 wrote: Mon Feb 03, 2025 1:51 pm
up-and-to-the-right wrote: Mon Feb 03, 2025 9:42 am No VOO or VFIAX unfortunately.
VOO and VTI are already well priced in my opinion. I was hoping to see VNQ on the list however.
That said, as someone who puts 20% in international and keeps emergency funds in VUSXX, this cut is quite substantial for me.
I keep my emergency fund in the VMFXX settlement fund but I live in a high tax state so I’m planning to switch to VUSXX. Am I correct that VUSXX can’t be selected as your settlement account at VG so you need to purchase it separately? And if you ever want to withdraw it, do you have to sell it from VUSXX, wait for it to settle into the VMFXX settlement fund, and then withdraw to your bank?
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by fetch5482 »

greenway23 wrote: Mon Feb 03, 2025 2:13 pm
fetch5482 wrote: Mon Feb 03, 2025 1:51 pm

VOO and VTI are already well priced in my opinion. I was hoping to see VNQ on the list however.
That said, as someone who puts 20% in international and keeps emergency funds in VUSXX, this cut is quite substantial for me.
I keep my emergency fund in the VMFXX settlement fund but I live in a high tax state so I’m planning to switch to VUSXX. Am I correct that VUSXX can’t be selected as your settlement account at VG so you need to purchase it separately? And if you ever want to withdraw it, do you have to sell it from VUSXX, wait for it to settle into the VMFXX settlement fund, and then withdraw to your bank?
Yes, you have to manually purchase and sell it, unfortunately. Fidelity handled money market funds way better where you can use them to purchase etfs or withdraw without needing to first convert to sweep account.
That said, you can sell and withdraw on the same day if you do it during trading hours; so its not terribly bad. You do not need to wait the extra day between selling and withdrawing.
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by foosball »

Lower costs are always welcome. The lower ratios are really more about marketing to bring in new assets. The weighted average expense ratio of my portfolio went from 0.09% to... 0.09%.

I don't mean to be negative, but I would have greatly preferred that they kept the costs the same and invested more in IT, security, and customer service. They're buying neon signs, while the old plumbing is backing up.
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Re: Vanguard Cuts Fees across range of Mutual Funds and ETFs

Post by fetch5482 »

foosball wrote: Mon Feb 03, 2025 2:23 pm Lower costs are always welcome. The lower ratios are really more about marketing to bring in new assets. The weighted average expense ratio of my portfolio went from 0.09% to... 0.09%.

I don't mean to be negative, but I would have greatly preferred that they kept the costs the same and invested more in IT, security, and customer service. They're buying neon signs, while the old plumbing is backing up.
Or do what I do - use Fidelity to buy Vanguard ETFs so you have better app, better IT and better customer service. Use Vanguard for the emergency funds (VUSXX) and 529 plan. You get best of both worlds. In recent years, Vanguard seems more interested in managing accounts for a fee rather than buy-and-hold passive accounts anyway; so this may even be their intention for all we know.
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