Vanguard slashes trackers fees by as much as 50%

Vanguard Asset Management has slashed ongoing charges across 25 of its tracker and exchange traded funds.

The new charges are set to come into effect for both existing and new investors as of 1 September 2014.

Ongoing charges across Vanguard’s index mutual funds will now range from 0.08 per cent to 0.38 per cent as part of the changes.

Vanguard exchange traded funds will now feature charges extending from 0.07 per cent to 0.29 per cent while the firm’s complete LifeStrategy range has had ongoing charges brought down to 0.24 per cent.

Amongst the biggest reductions are the £1.6bn Vanguard US Equity and £1.4bn Vanguard FTSE Developed World ex-UK Index funds which have both had their ongoing charges halved from 0.20 per cent to 0.10 per cent and 0.30 per cent to 0.15 per cent respectively.

The £607.8m Vanguard FTSE Developed Europe ex-UK Equity Index and £7.7bn Vanguard Emerging Markets Stock Index funds follow closely behind with a 13 per cent cut to their ongoing charges.

Vanguard European managing director Tom Rampulla says the fee reductions are “business as usual for Vanguard.”

“As a pioneer of high value, low-cost investing, Vanguard has a near 40-year history of reducing the fees investors pay for its mutual funds and ETFs,” he adds.

“As we broaden our presence in Europe, we will leverage operating efficiencies and use our increasing global scale to keep costs to a minimum for investors.”

A full list of the Vanguard funds affected by the reductions to ongoing charges include:

UK and Irish Domiciled Index Mutual Fund Range:

Fund Name Former Ongoing Charge New Ongoing Charge
Vanguard FTSE U.K. Equity Index Fund 0.15% 0.08%
Vanguard FTSE U.K. Equity Income Index Fund 0.25% 0.22%
Vanguard FTSE U.K. All Share Index Unit Trust 0.15% 0.08%
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 0.30% 0.15%
Vanguard FTSE Developed Europe ex-U.K. Equity Index Fund 0.25% 0.12%
Vanguard U.S. Equity Fund 0.20% 0.10%
Vanguard SRI Global Stock Fund 0.40% 0.35%
Vanguard Global Small-Cap Index Fund 0.40% 0.38%
Vanguard SRI European Stock Fund 0.35% 0.30%
Vanguard Emerging Markets Stock Index Fund 0.40% 0.27%
Vanguard Japan Stock Index Fund 0.30% 0.23%
Vanguard Pacific Ex-Japan Stock Index Fund 0.30% 0.23%
Vanguard U.K. Investment Grade Bond Index Fund 0.20% 0.15%
Vanguard U.K. Short Term  Inv. Grade Bond Index Fund 0.20% 0.15%
Vanguard Global Bond Index Fund 0.20% 0.15%
Vanguard Global Short-Term Bond Index Fund 0.20% 0.15%

 Exchange Traded Fund Range

Fund Name Existing Ongoing Charge New Ongoing Charge
Vanguard S&P 500 UCITS ETF 0.09% 0.07%
Vanguard FTSE 100 UCITS ETF 0.10% 0.09%
Vanguard FTSE Developed Europe UCITS ETF 0.15% 0.12%
Vanguard FTSE Emerging Markets UCITS ETF 0.29% 0.25%

 

 LifeStrategy Fund Range

Fund Name Existing Ongoing Charge New Ongoing Charge
Vanguard LifeStrategy 20 % Equity Fund 0.29% 0.24%
Vanguard LifeStrategy 40 % Equity Fund 0.29% 0.24%
Vanguard LifeStrategy 60 % Equity Fund 0.29% 0.24%
Vanguard LifeStrategy 80 % Equity Fund 0.29% 0.24%
Vanguard LifeStrategy 100 % Equity Fund 0.29% 0.24%