One of the things that Vanguard has focused on for decades is shareholder-friendly policies that keep management fees to a minimum.
The company recently followed through on that pledge again by announcing a fee reduction on 53 of its mutual funds and exchange-traded funds (ETFs), including some of the industry’s most popular names.
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Given that the expense ratios on many Vanguard ETFs are already in the single digits, the changes in many cases will feel small. But Vanguard has done mass fee reductions like this multiple times in the past. This will likely not be the last time you see this.
Many of the biggest and best Vanguard ETFs saw their expense ratios reduced this time around. That includes the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG), the Vanguard High Dividend Yield ETF (NYSEMKT: VYM), the Vanguard Growth ETF, the Vanguard Value ETF, and the Vanguard Large Cap ETF.
Here’s the partial list of the changes for these and other major Vanguard ETFs.
For a full list of all expense ratio reductions, click here.
|
Ticker |
Fund Name |
Prior Expense Ratio |
New Expense Ratio |
|---|---|---|---|
|
VIG |
Vanguard Dividend Appreciation ETF |
0.05% |
0.04% |
|
VYM |
Vanguard High Dividend Yield ETF |
0.06% |
0.04% |
|
VUG |
Vanguard Growth ETF |
0.04% |
0.03% |
|
VTV |
Vanguard Value ETF |
0.04% |
0.03% |
|
MGC |
Vanguard Mega Cap ETF |
0.07% |
0.05% |
|
VV |
Vanguard Large Cap ETF |
0.04% |
0.03% |
|
VO |
Vanguard Mid Cap ETF |
0.04% |
0.03% |
|
VB |
Vanguard Small Cap ETF |
0.05% |
0.03% |
|
VIGI |
Vanguard International Dividend Growth ETF |
0.10% |
0.07% |
|
VYMI |
Vanguard International High Dividend Yield ETF |
0.17% |
0.07% |
|
VWO |
Vanguard FTSE Emerging Markets ETF |
0.07% |
0.06% |
|
VONE |
Vanguard Russell 1000 ETF |
0.07% |
0.06% |
|
VTWO |
Vanguard Russell 2000 ETF |
0.07% |
0.06% |
|
VTHR |
Vanguard Russell 3000 ETF |
0.07% |
0.06% |
|
VBIL |
Vanguard 0-3 Month Treasury Bill ETF |
0.07% |
0.06% |
Data source: Vanguard.
Many of these changes are a single basis point, so it’s a case of the really cheap getting a little cheaper.
There were some notable changes, though. The Vanguard International High Dividend Yield ETF saw its expense ratio cut by more than half down to 0.07%. The Vanguard 0-3 Month Treasury Bill ETF launched only a year ago but is already getting its fee reduced.
Don’t expect major performance changes, but it’s another positive step by Vanguard for shareholders.
Before you buy stock in Vanguard Dividend Appreciation ETF, consider this:


