Published February 28, 2013
Vanguard keeps bolstering its reputation as one of the low-cost leaders among ETF issuers. Just days after the Pennsylvania-based firm announced lower fees for the popular Vanguard High Dividend Yield ETF (VYM), the company unveiled lower expense ratios on eight other ETFs.
Included in the new batch of fee reductions is the Vanguard FTSE Emerging Markets ETF (VWO), which has over $60 billion in assets under management making it the largest emerging markets ETF by that metric. VWO will now charge 0.18 percent from year, down from 0.2 percent.
At 0.18 percent, VWO now has the same expense ratio as the iShares Core MSCI Emerging Markets ETF (IEMG), the ETF rolled about by BlackRock's iShares unit in October as lower cost alternative to VWO and the iShares MSCI Emerging Markets Index Fund (EEM).
The Vanguard Total International Stock Index ETF (VXUS) is home to a 0.16 percent annual expense ratio compared with 0.18 percent previously while the Vanguard Total World Stock Index ETF (VT) is now charging 0.19 percent compared with 0.22 percent prior to the announcement.
Investors will now pay 0.32 percent per year to own the Vanguard Global ex-US Real Estate ETF (VNQI), down from 0.35 percent. The Vanguard FTSE All-World ex-US ETF (VEU) also saw a three-basis point fee reduction to 0.15 percent from 0.18 percent.
The Vanguard FTSE All-World ex-US Small-Cap Index ETF (VSS) has a new expense ratio of 0.25 percent down from 0.28 percent.
Over the past year, Vanguard has lowered fees on 45 of its ETFs, including its 10 sector funds.
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