Vanguard cuts fees on 53 funds for 2026

Core Insights - Vanguard plans to reduce expense ratios on 84 mutual fund and exchange-traded share classes across 53 funds, estimating approximately $250 million in fee reductions for investors by 2026 [1] - Over the past two years, Vanguard has implemented significant fee decreases, resulting in nearly $600 million in cumulative savings for investors, marking the largest cost reduction in the firm's history [1] Expense Ratios and Performance - Following the fee reductions, the average expense ratio for Vanguard's product range across all asset categories and investment styles is now at 0.06% [2] - A significant proportion of Vanguard's funds have outperformed their peer group averages over the past decade, with 84% of mutual funds and 88% of active fixed income funds meeting this performance criterion [2] Affected Products - The fee reductions will impact various products, including US equity 9-box funds such as the Growth ETF (VUG) and Value ETF (VTV), as well as large-, mid-, and small-cap growth, value, and blend funds [3] - Other affected products include the FTSE Emerging Markets ETF (VWO) and dividend-oriented ETFs like the Dividend Appreciation ETF (VIG) and High Dividend Yield ETF (VYM) [3] Company Commitment and Expansion Plans - Vanguard's CEO Salim Ramji emphasized that the fee reductions reflect the company's commitment to its investor-owners, aiming to deliver over half a billion dollars in savings across 2025 and 2026 [4] - The company is also planning to expand its Miami team from five to 15 over the next five years and is considering expanding offshore services in US locations such as California and Houston [5]