Investing via exchange-traded fund has just gotten cheaper at one asset manager.
In a bid to bring more investors to the ETF space, Vanguard has announced that it has cut prices on 21 of its ultra-low-cost funds, including eight of its ten largest ETFs.
As first reported in ETF.com, the ETFs getting price cuts include some of the largest ETFs on the market today, including the $114 billionVanguard Total Stock Market ETF (VTI)and the $112 billionVanguard S&P 500 ETF (VOO), the third and fourth largest funds, respectively. VTI and VOO now each cost 0.03%, down from 0.04% apiece.
Other notable price drops include the $72 billionVanguard FTSE Developed Markets ETF (VEA), whose expense ratio went from 0.07% to 0.05%; and the $66 billionVanguard FTSE Emerging Markets ETF (VWO), whose expenses dropped from 0.14% to 0.12%.
The move is designed to make the issuer more competitive with others such as Schwab,State StreetandJ.P. Morgan.
The $48 billionVanguard Value ETF (VTV), $40 billionVanguard Growth ETF (VUG), and $38 billionVanguard Total Bond Market ETF (BND)also saw price drops, from 0.05% to 0.04%.
Please see the following table for complete details, courtesy of ETF.com
|
Vanguard ETFs Getting Fee Cuts |
|||
|
Ticker |
Fund |
Old Expense Ratio |
New Expense Ratio |
|
0.05% |
0.04% |
||
|
0.11% |
0.09% |
||
|
0.07% |
0.05% |
||
|
0.11% |
0.09% |
||
|
0.10% |
0.09% |
||
|
0.14% |
0.12% |
||
|
0.05% |
0.04% |
||
|
0.04% |
0.03% |
||
|
0.10% |
0.09% |
||
|
0.13% |
0.12% |
||
|
0.10% |
0.09% |
||
|
0.09% |
0.08% |
||
|
0.04% |
0.03% |
||
|
0.05% |
0.04% |
||
|
0.05% |
0.04% |
||
|
0.05% |
0.04% |
||
|
0.14% |
0.12% |
||
|
0.32% |
0.30% |
||
|
0.08% |
0.07% |
||
|
0.11% |
0.09% |
||
|
0.08% |
0.06% |
||
Source: FactSet; data as of 4/29/2019
