Vanguard signage outside the company’s campus in Paoli, Pennsylvania, US, on Tuesday, Oct. 8, 2024. Photo: Hannah Beier/Bloomberg

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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