2022-04-29 | ARCA:BIV | Press release

Four bond ETFs report lower fees

VALLEY FORGE, Pa., April 29, 2022 /PRNewswire/ — Vanguard today announced expense ratio changes for six funds across multiple ETF and mutual fund share classes with fiscal years ending December 2021. The changes include reductions for four broadly diversified bond ETFs and represent $8.8 million overall net savings for investors.1 Vanguard’s investor-owned business structure allows the company to return value to shareholders through reduced costs and reinvestments to improve capabilities, technology and customer experience.2

Changes in the expense ratio occur for a variety of reasons, including asset growth and operational efficiency. For most of Vanguard’s external advisory arrangements, the advisor’s fees are also subject to adjustment up or down based on their investment performance relative to the total return of an appropriate benchmark. Changes in the expense ratio may also reflect other types of portfolio management fees. For funds that employ both short and long-term strategies, such as the Vanguard Market Neutral Fund, expense ratios may include borrowing costs and dividend costs on securities sold short.

About Vanguard

Founded in 1975, Vanguard is one of the world’s leading investment management companies. The firm offers investment, advisory and retirement services to individual investors, institutions and financial professionals. Situated at Valley Forge, PennsylvaniaVanguard has offices around the world and manages $8.1 trillion on behalf of 30 million customers in March 31, 2022. Vanguard operates under a unique, investor-owned structure, where shareholders of Vanguard funds own the funds, which in turn own Vanguard. As such, Vanguard adheres to a simple goal: to stand up for all investors, treat them fairly, and give them the best chance for investment success. For more information, visit vanguard.com.

All digits at March 31, 2022 unless otherwise stated.

1 Estimated savings for identified funds are the difference between past and current expense ratios multiplied by average assets under management (AUM). Average AUM is based on daily average assets during a month, which are then averaged over the 12 months of the fiscal year ending December 2021.

2 Vanguard is investor-owned, meaning the fund’s shareholders own the funds, who in turn own Vanguard.

For more information about Vanguard funds, go to vanguard.com for a prospectus or, where available, a simplified prospectus. The investment objectives, risks, charges, expenses and other important information are contained in the prospectus; read it and think about it carefully before investing.

Vanguard ETF shares are not redeemable from the issuing fund except in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.

Any investment is subject to risk, including the possible loss of the money you invest.

Bond funds are exposed to the risk that an issuer will not make payments on time and that bond prices will decline due to rising interest rates or negative perceptions of an issuer’s ability to make payments.

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