Vanguard silently lowers the expense ratio on 53 ETFs
The average expense ratio reduction is 23%.
The official Vanguard news and announcements URL - https://corporate.vanguard.com/content/corporatesite/us/en/corp/who-we-are/pressroom/index.html - has made no mention of these changes at the time of writing this post.
Vanguard has reduced the expense ratios (the annual fees you pay) on many of their most popular ETFs. For example, their Total International Stock ETF (VXUS) now costs just 0.05% per year – down from 0.08%. That’s a 37.5% reduction.
Investors benefit from reduced fees because every dollar saved in fees is a dollar that stays invested and can grow over time. While fees aren’t the only factor to consider when choosing investments, they’re one of the few aspects of investing that you can control. Lower fees mean more of your money stays invested for your future.
You don’t need to take any action to benefit from these lower fees if you already own affected Vanguard ETFs (list below). The reduced expenses will automatically apply to your investments.
The complete list of the affected ETFs and their changes:
| Name | Ticker | Old Expense Ratio | New Expense Ratio | Change (in basis points) |
|---|---|---|---|---|
| Communication Services ETF | VOX | 0.10% | 0.09% | -1 |
| Consumer Discretionary ETF | VCR | 0.10% | 0.09% | -1 |
| Consumer Staples ETF | VDC | 0.10% | 0.09% | -1 |
| Dividend Appreciation ETF | VIG | 0.06% | 0.05% | -1 |
| Emerging Markets Government Bond ETF | VWOB | 0.20% | 0.15% | -5 |
| Energy ETF | VDE | 0.10% | 0.09% | -1 |
| ESG International Stock ETF | VSGX | 0.12% | 0.10% | -2 |
| Extended Duration Treasury ETF | EDV | 0.06% | 0.05% | -1 |
| Extended Market ETF | VXF | 0.06% | 0.05% | -1 |
| Financials ETF | VFH | 0.10% | 0.09% | -1 |
| FTSE All-World ex-US ETF | VEU | 0.07% | 0.04% | -3 |
| FTSE Developed Markets ETF | VEA | 0.06% | 0.03% | -3 |
| FTSE Emerging Markets ETF | VWO | 0.08% | 0.07% | -1 |
| FTSE Europe ETF | VGK | 0.09% | 0.06% | -3 |
| FTSE Pacific ETF | VPL | 0.08% | 0.07% | -1 |
| Health Care ETF | VHT | 0.10% | 0.09% | -1 |
| Industrials ETF | VIS | 0.10% | 0.09% | -1 |
| Information Technology ETF | VGT | 0.10% | 0.09% | -1 |
| Intermediate-Term Bond ETF | BIV | 0.04% | 0.03% | -1 |
| Intermediate-Term Corporate Bond ETF | VCIT | 0.04% | 0.03% | -1 |
| Intermediate-Term Treasury ETF | VGIT | 0.04% | 0.03% | -1 |
| International Dividend Appreciation ETF | VIGI | 0.15% | 0.10% | -5 |
| International High Dividend Yield ETF | VYMI | 0.22% | 0.17% | -5 |
| Long-Term Bond ETF | BLV | 0.04% | 0.03% | -1 |
| Long-Term Corporate Bond ETF | VCLT | 0.04% | 0.03% | -1 |
| Long-Term Treasury ETF | VGLT | 0.04% | 0.03% | -1 |
| Materials ETF | VAW | 0.10% | 0.09% | -1 |
| Mortgage-Backed Securities ETF | VMBS | 0.04% | 0.03% | -1 |
| Russell 1000 ETF | VONE | 0.08% | 0.07% | -1 |
| Russell 1000 Growth ETF | VONG | 0.08% | 0.07% | -1 |
| Russell 1000 Value ETF | VONV | 0.08% | 0.07% | -1 |
| Russell 2000 ETF | VTWO | 0.10% | 0.07% | -3 |
| Russell 2000 Growth ETF | VTWG | 0.15% | 0.10% | -5 |
| Russell 2000 Value ETF | VTWV | 0.15% | 0.10% | -5 |
| Russell 3000 ETF | VTHR | 0.10% | 0.07% | -3 |
| S&P 500 Growth ETF | VOOG | 0.10% | 0.07% | -3 |
| S&P 500 Value ETF | VOOV | 0.10% | 0.07% | -3 |
| S&P Mid-Cap 400 ETF | IVOO | 0.10% | 0.07% | -3 |
| S&P Mid-Cap 400 Growth ETF | IVOG | 0.15% | 0.10% | -5 |
| S&P Mid-Cap 400 Value ETF | IVOV | 0.15% | 0.10% | -5 |
| S&P Small-Cap 600 ETF | VIOO | 0.10% | 0.07% | -3 |
| S&P Small-Cap 600 Growth ETF | VIOG | 0.15% | 0.10% | -5 |
| S&P Small-Cap 600 Value ETF | VIOV | 0.15% | 0.10% | -5 |
| Short-Term Bond ETF | BSV | 0.04% | 0.03% | -1 |
| Short-Term Corporate Bond ETF | VCSH | 0.04% | 0.03% | -1 |
| Short-Term Inflation-Protected Securities ETF | VTIP | 0.04% | 0.03% | -1 |
| Short-Term Tax-Exempt Bond ETF | VTES | 0.07% | 0.06% | -1 |
| Short-Term Treasury ETF | VGSH | 0.04% | 0.03% | -1 |
| Tax-Exempt Bond ETF | VTEB | 0.05% | 0.03% | -2 |
| Total Corporate Bond ETF | VTC | 0.04% | 0.03% | -1 |
| Total International Stock ETF | VXUS | 0.08% | 0.05% | -3 |
| Total World Stock ETF | VT | 0.07% | 0.06% | -1 |
| Utilities ETF | VPU | 0.10% | 0.09% | -1 |