Vanguard has been the fastest growing exchange traded fund provider so far this year as investors flock to its low-cost ETFs. Incoming chief investment officer Tim Buckley has pledged the firm won’t let its ETFs be undercut on price, and now the fund provider is putting its money where its mouth is.

Vanguard has already gathered record inflows in 2012 with a $113 billion haul. The previous high was $104 billion in 2007, Bloomberg News reports.

In ETFs, Vanguard added $41.8 billion this year through Sept. 24, compared to $33.3 for BlackRock and $25.9 for State Street Global Advisors, according to a Pensions & Inestments article. The three firms are the largest ETF providers.

“We’re pleased that investors recognize Vanguard as the low-cost fund leader and continue to entrust assets to us,” John Woerth, a spokesman for Vanguard, said in the Bloomberg article.

On average, Vanguard’s ETF products have a 0.17% expense ratio and its cheapest offering comes with a 0.05% annual fee.

The fund provider has built its business on low-cost, passive management, which has been growing in popularity in recent years after many active managers failed to deliver alpha.

“Vanguard owns the low-cost attribute in the public’s minds,” Don Phillips, president of Morningstar’s investment research division, said in a Reuters article.

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