The single greatest thing about Vanguard’s corporate structure is that investors directly benefit from Vanguard’s increasing economies of scale. As assets grow, and fixed expenses stay the same, these economies of scale get passed down to investors in the form of reduced expenses. In an announcement today, Vanguard shared with the public that expenses on many popular funds and ETFs have fallen yet again. Some notables include:
- Vanguard FTSE All-World ex-US Small-Cap ETF: down to 0.20% from 0.25%
- Vanguard FTSE Emerging Markets ETF: down to 0.15% from 0.18%
- Vanguard Total International Stock ETF: down to 0.14% from 0.16%
As investors continue to wise up to the generally dismal performance of actively managed funds and move their portfolios to more effective strategies, Vanguard shareholders reap the benefits.
Full Vanguard release is found here: Fund expense changes reported in February