Retail investors set to benefit from Vanguard’s recent ETF and Index Fund fee cuts

Oct 25, 2019 | Investments

Another fee reduction after June cuts

In its efforts to maximize the returns for retail investors, Vanguard has cut management fees across 36 funds, lowering its average asset management charges to 0.2%.

In the latest round of expense optimization, the £4.7 trillion AUM company has slashed its fees for 13 ETFs, 22 index funds, and the Vanguard Sterling Short-Term Money Market fund. With these reductions, Vanguard has brought down its average ongoing charges figure to 0.2% in their UK offerings. Vanguard’s index mutual funds have an average OCF of 0.15% now, whereas its average OCF for ETF index funds has come down to 0.1%.

The fee cut comes after its recent cut in UK-domiciled funds (actively-managed) in June. Most of its fund range had met its three-year track records in June itself.

Vanguard has been continuously working on its fund management fees, bringing them lower in a bid to offer maximum benefits to its investors. The firm intends to educate investors about the impact of fees on their investment returns.

Vanguard’s efforts towards providing low-cost financial products to its clients are likely to burst myths surrounding professional money management – investments with high management charges perform better.

 

 

This communication is for informational purposes only based on our understanding of current legislation and practices which are subject to change and are not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

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