Vanguard cuts fees on more US-listed ETFs

May 2nd, 2017 | By | Category: ETF and Index News

THEMATIC INVESTING - WEDNESDAY 29TH JUNE 2022 (08:15-11:30) - THE BILTMORE MAYFAIR, LONDON Please join us for our annual thematic investing breakfast briefing with participation from MSCI, WisdomTree, KraneShares, ETC Group / HANetf, and Global X. Please register now if you would like to attend.


Vanguard has announced another wave of fee reduction on selected funds within its US-listed ETF suite, following on from the firm’s last fee trimming announcement in February 2017. Included in the latest round of fee lowering are 13 equity ETFs and four bond ETFs.

Vanguard cuts fees on more US listed ETFs

The fee reductions affect 13 equity and 4 fixed income ETFs listed in the US.

Among the ETFs affected is the Vanguard Total Stock Market ETF (NYSE: VTI), which has seen its expense ratio reduced by 1 basis point to 0.04%. VTI is the ETF share class of the Vanguard Total Stock Market Index Fund, which tracks the CRSP US Total Market Index. VTI has AUM of $78 billion and the fee reduction makes VTI 96% cheaper than the average expense ratio of funds with similar holdings, according to Vanguard.

Other notable ETFs involved include the Vanguard S&P 500 ETF (NYSE Arca: VOO), which has had its fees cut by 1 basis point to 0.04% and now matches the iShares Core S&P 500 ETF (NYSE Arca: IVV) as the cheapest ETF tracking the S&P 500 Index. VOO has AUM of $66bn, still some way off the largest S&P 500 tracker, the SPDR S&P 500 ETF Trust (NYSE Arca: SPY), which has $238bn.

On the fixed income side, the Vanguard Total Bond Market Index Fund (NYSE Arca: BND), which is the second largest US aggregate bond ETF with $34bn in AUM, has had its expense ratio reduced by 1 basis point to 0.05%.

The equity ETF fee reductions are as follows:

  • The Vanguard Total Stock Market ETF (VTI) declined 1 basis point to 0.04%
  • The Vanguard S&P 500 ETF (VOO) declined 1 basis point to 0.04%
  • The Vanguard Value ETF (VTV) declined 2 basis points to 0.06%
  • The Vanguard Growth ETF (VUG) declined 2 basis points to 0.06%
  • The Vanguard Large-Cap ETF (VV) declined 2 basis points to 0.06%
  • The Vanguard Mid-Cap ETF (VO) declined 2 basis points to 0.06%
  • The Vanguard Small Cap ETF (VB) declined 2 basis points to 0.06%
  • The Vanguard Mid-Cap Value ETF (VOE) declined 1 basis point to 0.07%
  • The Vanguard Mid-Cap Growth ETF (VOT) declined 1 basis point to 0.07%
  • The Vanguard Small-Cap Value ETF (VBR) declined 1 basis point to 0.07%
  • The Vanguard Small-Cap Growth ETF (VBK) declined 1 basis point to 0.07%
  • The Vanguard Extended Market ETF (VXF) declined 1 basis point to 0.08%
  • The Vanguard FTSE Developed Market ETF (VEA) declined 2 basis points to 0.07%

The fixed income ETF fee reductions are as follows:

  • The Vanguard Total Bond Market ETF (BND) declined 1 basis point to 0.05%
  • The Vanguard Intermediate-Term Bond ETF (BIV) declined 2 basis points to 0.07%
  • The Vanguard Long-Term Bond ETF (BLV) declined 2 basis points to 0.07%
  • The Vanguard Short-Term Bond ETF (BSV) declined 2 basis points to 0.07%

Vanguard’s total ETF suite has $681 billion in assets across 70 products.

Tags: , , , , , , , ,

Leave a Comment