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.