Vanguard cuts fees on 87 mutual funds, saving investors $350M in 2025: Will rivals follow suit?
The fee cuts are the largest annual expense ratio reduction in the firm’s 50-year history – and the first major announcement from newly appointed CEO Salim Ramji.
By Lynn Cavanaugh |
February 04, 2025 at 10:21 AM
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On Monday, asset manager Vanguard made a major announcement, slashing the fees on nearly half of its U.S. funds, expecting to save investors more than $350 million in 2025. The initiative is the largest annual expense ratio reduction in Vanguard’s nearly 50-year history – and the first major announcement from Salim Ramji, who became Vanguard CEO six months ago.
Effective February 1, 2025, the firm reduced fees on 168 share classes across 87 funds by 0.02% to 0.06%, which represents one fourth of the $9.2 trillion in Vanguard’s mutual funds, exchange-traded funds and money market funds. Some of the largest Vanguard funds include the Total Bond Market Index Fund, Treasury Money Market Fund and Tax-Exempt Bond ETF.
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