ETF Trends
ETF Trends
  • Vanguard lowers fees on some of its most popular ETFs
  • Expense ratios reduced on six of Vanguard’s international ETFs and one domestic fund
  • Vanguard CEO Bill McNabb attributes asset growth related to favorable financial markets

Vanguard, the second-largest U.S. issuer of exchange traded funds, is once again lowering fees on some of its popular ETFs. In a statement issued last week, Pennsylvania-based Vanguard said it has reduced expense ratios on six of its international ETFs and one domestic fund.

The $11.3 billion Vanguard High Dividend Yield ETF (NYSEArca: VYM), one of the largest U.S. dividend ETFs, is the U.S. focused fund that has a new, lower annual fee.

Among Vanguard’s international ETFs that now have lower expense ratios, the Vanguard FTSE All-World ex-US (NYSEArca: VEU), which tracks international stocks and excludes the U.S. markets, is now charging 0.13%, down from 0.14%. The Vanguard Total World Stock ETF (NYSEArca: VT), which follows the FTSE Global All Cap Index, now has an expense ratio of 0.14%, down from 0.17%.

The Vanguard Total International Stock ETF (NYSEArca: VXUS), which holds more than 5,000 stocks, also lowered its fee to 0.13% from 0.14%. Vanguard lowered the fees on the Vanguard Total International Bond ETF (NYSEArca: BNDX) to 0.15% per year from 0.19%.

The issuer also lowered the fee on the Vanguard Global ex-U.S. Real Estate ETF (NYSEArca: VNQI) by 25% to 0.18%. The Vanguard FTSE All World ex-US Small-Cap ETF (NYSEArca: VSS) now charges 0.17% per year, down from 0.19%.

“The continued adoption of the Vanguard way of investing, coupled with asset growth related to favorable financial markets, enables us to reduce the cost of investing for all our investors from financial advisors and institutional investors to IRA savers and 529 plan holders,” said Vanguard CEO Bill McNabb in the statement. “While Vanguard has some of the lowest-cost mutual funds and ETFs in the industry, low costs have not come at the expense of providing competitive investment performance, a broad array of funds and other services, and a high level of client service.”

The opinions and forecasts expressed herein are solely those of Tom Lydon, 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.