“The reductions are a function of the way Vanguard funds operate: When funds experience greater efficiencies (either through asset growth, operating cost reductions, or a combination of both), the related savings are delivered to fund owners in the form of lower expenses,” the asset manager said in a press release.
“VWO’s expense reduction represents another example of Vanguard sharing economies of scale savings directly with the clients that help generate them,” Vanguard Head of Public Relations John Woerth told IndexUniverse.
Vanguard also cut fees on Vanguard MSCI Europe (NYSEArca: VGK), Vanguard MSCI Pacific (NYSEArca: VPL), Vanguard Total World Stock (NYSEArca: VT), Vanguard FTSE All-World ex-U.S. (NYSEArca: VEU), Vanguard FTSE All-World ex-U.S. Small Cap (NYSEArca: VSS), Vanguard Total International Stock (NYSEArca: VXUS) and Vanguard Global ex-U.S. Real Estate (NYSEArca: VNQI).
Earlier this week, the company knocked down the expense ratio charged by Vanguard High Dividend Yield Index ETF (NYSEArca: VYM). [Popular Vanguard ETF Gets Even Cheaper]