(Bloomberg) -- Vanguard Group Inc., the world’s largest mutual fund company, filed to create a new share class for some funds that would charge institutional investors as little as one cent for every $100 invested.

The 0.01 percent annual fee, if approved by the U.S. Securities and Exchange Commission, will apply to three funds--the Vanguard Total Stock Market Index Fund, Vanguard Total Bond Market Index Fund and Vanguard S&P 500 Index Fund--according to company spokesman David Hoffman.

Slightly higher fees will be charged on three other funds, he said.

The new share class called “institutional select” will apply to investments of between $3 billion and $5 billion, depending on the fund.

“This is just Vanguard putting a stick in the eye of the competition,” said Daniel Wiener, editor of the Independent Adviser for Vanguard Investors, a newsletter. “They are just saying we can take this down as far as you want.”

Vanguard, based in Valley Forge, Pennsylvania, has been competing with firms such as Charles Schwab Corp. to offer the lowest prices on indexed products, including exchange-traded funds.

Vanguard manages more than $3 trillion, a majority of it in funds that track indexes.

The company last year attracted a record $236 billion in deposits.

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