Vanguard on Wednesday eliminated or reduced so-called contingent redemption fees for more than 30 of its mutual funds.
“Because we have other measures in place to protect the interests of long-term investors and to discourage frequent trading, we determined that we no longer needed this fee,” the company said in a press release.
Vanguard continues to lower the costs of investing in its mutual funds and ETFs.
The firm’s focus on core holdings and very low fees is working as Vanguard is dominating inflows to both mutual funds and ETFs this year. [Why Vanguard is Leading ETF Inflows for 2012]
“The funds will continue to use other methods to help protect long-term investors from the effects of frequent trading,” Vanguard said in Wednesday’s release. “For example, the funds will still have a waiting period of 60 calendar days for purchases or exchanges into a fund account after the investor has redeemed or exchanged out of that fund account. We also may reject any purchase request, including an exchange from another Vanguard fund, if we believe it could hurt the fund’s operation or performance.”
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.