Vanguard announces expense ratio reductions for active equity and bond funds

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VALLEY FORGE, Pa., February 1, 2022 /PRNewswire/ — Vanguard reported lower expense ratios for seven actively managed mutual fund share classes and one index ETF in prospectus filings for funds with fiscal years ending September 30, 2021. Thanks to these expenditure reductions, $4.4 million savings was returned to investors.1 This is the second of six rounds of annual prospectus updates for Vanguard’s 2021-2022 fiscal year reporting period, which runs from December through May.

The breadth and success of Vanguard’s active franchise has contributed to asset growth and operational efficiencies, enabling the company to lower expense ratios across its active line. Vanguard’s active bond funds reporting lower expenses include stocks from investors in the $6.2 billion Vanguard Core Bond Fund as well as Investor and Admiral Shares™ of $2.6 billion Vanguard Emerging Markets Bond Fund. Among Vanguard’s active equity funds, Investor and Admiral Shares of the $21.2 billion Vanguard Capital Opportunity Fund and the $568.1 million The Vanguard International Core Stock Fund reports lower spending. the $19.9 billion The Vanguard Short-Term Inflation-Protected Securities ETF also reports a lower expense ratio.

Vanguard Investor Ownership2 The corporate structure allows the company to return shareholder value by reducing costs and reinvesting to improve capabilities, technology and customer experience. Vanguard continued to invest heavily in its line of active funds to deliver carefully selected, sustainable investments that deliver long-term value. The firm focuses on both developing internal investment talent and partnering with world-class external advisors.

Expense ratio changes for Vanguard funds and ETFs

name

Teleprinter

2020 year-end expense ratio

2021 year-end expense ratio

Change (in basis points)

Vanguard Core Bond Fund Investor Equity

VCORX

0.25%

0.20%

-5

Vanguard Emerging Markets Bond Fund Investor Stocks

VEMBX

0.60%

0.55%

-5

Admiral Equity Vanguard Emerging Markets Bond Fund

VEGBX

0.45%

0.40%

-5

Vanguard International Core Stock Fund Investor Stocks

VWICX

0.46%

0.45%

-1

Vanguard International Core Stock Fund Admiral Shares

VZICX

0.36%

0.35%

-1

Vanguard Capital Opportunity Fund Investor Equity

VHCOX

0.44%

0.43%

-1

Vanguard Capital Opportunity Fund Admiral Equity

VHCAX

0.37%

0.36%

-1

Vanguard Short-Term Inflation-Protected Securities ETF

TVIP

0.05%

0.04%

-1

About Vanguard
Vanguard is one of the largest investment management companies in the world. From December 31, 2021Vanguard Managed $8.5 trillion in global assets. The company, headquartered in Valley Forge, Pennsylvania, offers 422 funds to its more than 30 million investors worldwide. For more information, visit vanguard.com.

Assets and cash flow at December 31, 2021 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 September 30, 2021.

2 Vanguard is client-owned, which means the shareholders of the US fund 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.

Investments in securities issued by non-US companies and governments are subject to risks, including country/regional risk and currency risk. These risks are particularly high in emerging markets.

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.

Vanguard Marketing Corporation, Distributor.

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