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Vanguard Cuts Costs on Six Funds
According to the announcement, six Vanguard stock index funds have added “ultra-low-cost Admiral Shares,” providing shareholders with what Vanguard termed “expense savings of more than 50% over the corresponding Investor Shares in some cases”.
The new shares are available for four domestic stock index funds, featuring estimated expense ratios ranging from 0.10% to 0.21%, and two international stock index funds with projected expense ratios of 0.12% and 0.18%.
A total of 74 Vanguard funds now offer Admiral Shares, including 38 index funds. To qualify for Admiral Shares of Vanguard index funds, shareholders need an account balance of $10,000 or more, while Investor Shares require a balance of $3,000.
Vanguard says it will automatically convert qualifying Investor Shares into the lower-cost Admiral Shares of the same fund over the next several months. Clients may also convert qualifying shares on Vanguard.com. Share conversions within the same fund are tax-free.
The impacted funds are listed on the following page.
Fund | Admiral Shares | Investor Shares | Savings | Savings |
Domestic Stock Index Funds | ||||
Vanguard Mid-Cap Growth Index Fund | 0.10% | 0.26% | 16 | 38% |
Vanguard Mid-Cap Value Index Fund | 0.10% | 0.26% | 16 | 38% |
Vanguard Small-Cap Growth Index Fund | 0.10% | 0.26% | 16 | 38% |
Vanguard Small-Cap Value Index Fund | 0.21% | 0.37% | 16 | 57% |
International Stock Index Funds | ||||
Vanguard Developed Markets Index Fund | 0.12% | 0.22% | 10 | 55% |
Vanguard FTSE All World EX-US Index Fund | 0.18% | 0.35% | 17 | 51% |
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