Vanguard cuts fees on dozens more funds for savings of nearly $600M

Core Insights - Vanguard is set to save investors hundreds of millions of dollars in 2026 by reducing fund costs, continuing a trend under CEO Salim Ramji [1][4] Group 1: Cost Reductions - Effective February 1, Vanguard reduced the expense ratio for 84 mutual fund and ETF share classes across 53 index products, resulting in nearly $250 million in estimated savings for investors [2] - The asset-weighted expense ratio across all asset classes decreased from 0.07% to 0.06% following these cuts, impacting 60% of Vanguard's products [3] - Over the past two years, Vanguard has implemented fee reductions totaling more than $500 million, reflecting its commitment to clients [4] Group 2: Fund Specifics - The latest expense ratio cuts ranged from 0.01% to 0.1%, with the largest reductions seen in specific funds such as: - International High Dividend Yield ETF: New expense ratio of 0.07%, down from 0.17% [5] - Total Stock Market Index Fund: New expense ratio of 0.06%, down from 0.14% [5] - Emerging Markets Government Bond Index Fund: New expense ratio of 0.08%, down from 0.13% [5] Group 3: Industry Context - Vanguard, managing over $12 trillion in assets, is one of the four dominant firms in asset management, alongside BlackRock, State Street, and Fidelity Investments [4] - The firm has been a leader in reducing average expense ratios, which have fallen by more than half a percentage point across stock and bond mutual funds and ETFs since 2000 [4]