Vanguard Lowers Minimum Requirements for Admiral Shares

Vanguard says that by reducing the minimums for the ultra-low-cost Admiral Shares, nearly 2 million shareholders in 52 funds will benefit.

Account balance minimums have been lowered for most retail clients to $10,000 (from $100,000) for Vanguard’s broad market stock and bond index funds, and to $50,000 (from $100,000) for most of Vanguard’s actively managed stock and bond funds.

The expense ratios for the Admiral Shares of Vanguard’s three broad market index funds – Total Stock Market, Total Bond Market, and Total International – range from 0.07% to 0.20%.  Vanguard says this allows investors to build a diversified portfolio covering the U.S. stock and bond markets, and the developed and emerging international stock markets, for less than comparable funds.

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Over the next several months, Vanguard will automatically convert qualifying accounts to Admiral Shares. Qualifying clients may convert sooner by visiting Vanguard.com or by calling 1-877-662-7447. Share conversions within the same fund are tax-free.

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