Vanguard is cutting the fee charged by a popular dividend ETF that has raked in over $2 billion this year as the firm passes along economies of scale to its investors.

Vanguard Dividend Appreciation ETF (NYSEArca: VIG) is lowering its expense ratio to 0.10% from 0.13%, effective Tuesday, according to a company spokesman.

“For the months of April and May, Vanguard reported that eight ETFs experienced expense ratio reductions from fiscal year 2011,” Vanguard said. “Including these latest reductions, Vanguard has reported expense ratio reductions for a total of 56 ETFs over the past year.” [Vanguard Slashes Expenses on Three Bond ETFs]

VIG is the largest dividend ETF with total assets of $16.2 billion, according to Morningstar data. [Vanguard Lowers Fees on Emerging Market ETF]

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