Vanguard Cuts Expense Ratios on 21 Ultra Low-Cost ETFs

The ETF fee war continues after Vanguard decided to cut fees on 21 of its ultra low-cost ETF funds last week. This includes eight of its ten biggest ETFs.

Among the ETFs in this latest round of expense ratio cuts included a variety of popular funds such as: the $114 billion Vanguard Total Stock Market ETF (VTI) as well as the $112 billion Vanguard S&P 500 ETF (VOO). The two popular funds rank as third and fourth largest funds, respectively. Costs on VTI and VOO have been reduced to 0.03%, down 1 basis point apiece.

Symbol ETF Expense Ratio (Previous)
Expense Ratio (New)
BND Vanguard Total Bond Market ETF 0.05% 0.04%
BNDX Vanguard Total International Bond ETF 0.11% 0.09%
VEA Vanguard FTSE Developed Markets ETF 0.07% 0.05%
VEU Vanguard FTSE All-World ex-US ETF 0.11% 0.09%
VGK Vanguard FTSE Europe ETF 0.10% 0.09%
VNQI Vanguard Global ex-U.S. Real Estate ETF 0.14% 0.12%
VO Vanguard Mid-Cap ETF 0.05% 0.04%
VOO Vanguard S&P 500 ETF 0.04% 0.03%
VPL Vanguard FTSE Pacific ETF 0.10% 0.09%
VSS Vanguard FTSE All-World ex-US Small-Cap ETF 0.13% 0.12%
VT Vanguard Total World Stock ETF 0.10% 0.09%
VTEB Vanguard Tax-Exempt Bond ETF 0.09% 0.08%
VTI Vanguard Total Stock Market ETF 0.04% 0.03%
VTV Vanguard Value ETF 0.05% 0.04%
VUG Vanguard Growth ETF 0.05% 0.04%
VV Vanguard Large-Cap ETF 0.05% 0.04%
VWO Vanguard FTSE Emerging Markets ETF 0.14% 0.12%
VWOB Vanguard Emerging Markets Government Bond ETF 0.32% 0.30%
VXF Vanguard Extended Market ETF 0.08% 0.07%
VXUS Vanguard Total International Stock ETF 0.11% 0.09%
VYM Vanguard High Dividend Yield ETF 0.08% 0.06%


This is not the first time that Vanguard has cut costs on its popular funds of late.

In February, Vanguard trimmed fees on a handful of ETFs such as the Vanguard Total Bond Market ETF (NasdaqGM: BND), Vanguard FTSE All-World ex-US (NYSEArca: VEU), Vanguard FTSE Europe ETF (NYSEArca: VGK), Vanguard FTSE Pacific ETF (NYSEArca: VPL), Vanguard Tax-Exempt Bond ETF (NYSEArca: VTEB), Vanguard FTSE Emerging Markets ETF (NYSEArca: VWO) and Vanguard Total International Stock ETF (NASDAQ: VXUS), the Wall Street Journal reported.

Despite the recent cuts, Vanguard funds still remaining more expensive than several of the most popular competitor ETF offerings by investment companies such as Schwab, JP Morgan, and State Street.

Still, for those who are waiting on the sidelines, looking for a reason to invest in an ETF, this could be an opportunity to get involved in the markets.