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On Monday, the Asset Management Riese Vanguard announced the broad fee cuts for many investment funds and prisoners of exchange and strengthened its position as one of the cheapest options for investors.
The move reduces the fees for 87 different funds and 168 overall classes of this fund. The average fee cutting is 20% per share. Vanguard said this was the greatest fee shortening of all time and will spare investors around 350 million US dollars this year, based on the current asset.
“We are proud to build on Vanguard's legacy, to reduce the costs of investing – which we have made more than 2,000 times since we were founded – by announcing our largest number of costs for the cost quota. “To get more of their returns and these savings over time,” said Salim Ramji, CEO von Vanguard, in a press release.
The list of cuts is actively managed and index -based products, with many of the funds correspond to billions of dollars. Shares, bonds and raw material products are all included in the reductions. Some of the funds on the Vanguard list include:
Fund fees for investment funds and ETFs are assessed as an annual percentage of the total assets managed for the stock class.
The charges against VEGBX and some other actively managed bond funds are remarkable because an active income as a growth area for the stock market fund industry can be emphasized. The booming popularity of ETFs, which can be bought more easily than many investment funds, is often referred to as the key factor for the change of administrative fees for equity funds in recent decades.
According to Vanguard, his actively managed fond income funds and ETFs have a weighted average cost rate of 0.10% compared to an industry average of 0.53%.
Vanguard has long been a leader in reducing fees under asset managers, a tradition that goes back to his founder Jack Bogle. The announcement on Monday is a sign that the trend could continue under Ramji, which took over in 2024 as CEO and previously worked on Rival Blackrock.
The fee cuts are less than a month after Vanguard agreed to pay more than 100 million US dollars for setting up fees from the securities and stock exchange orders in connection with information on some of its pension products.