0.20%. Additionally, Vanguard’s investment funds offer some of the lowest expense ratios in the industry. VTWV. Vanguard fund name. In the last 5 years, VCIT returned 4.21% vs. BND 2.12% . * How expense ratios are calculated at Vanguard At Vanguard you could save $7,527 over 10 years based on Vanguard's average expense ratio of 0.19%, which results in a cost of $1,687 in this scenario, compared with the industry average expense ratio of 1.08%, which results in a cost of $9,214. Investments in bonds are subject to interest rate, credit, and inflation risk. Industry averages exclude Vanguard. Vanguard Target Retirement Funds. In the fourth of six planned announcements, Vanguard reported lower expense ratios today for 15 mutual fund shares, including the industry’s largest balanced fund. Expense Ratio 0.03%. As if to almost taunt Vanguard from its superior position, Schwab lowered their expense ratio on its Total Market Index fund to 0.03%… exactly 0.01% less than what used to be Vanguard’s industry leading position of 0.04%. We started down this road nearly 45 years ago—so for us, it’s “business as usual.” We’re also proud to have laid the low-cost groundwork for other companies to follow—something industry experts called The Vanguard Effect®, but something we call just another day at Vanguard. Vanguard blew away the competition in Q1, fund flow data show Apr. The percentage of a portfolio's average net assets used to pay its annual expenses. 0.45%. In aggregate, Vanguard’s active equity funds have an average expense ratio of 0.27%, compared with the average expense ratio for all active stock funds industrywide of 1.14%. Compare that with Vanguard, where the average for all of our mutual funds and ETFs was 0.10%, or just $10—that's 83% lower! For instance, the investor share may have a 0.27% annual expense ratio versus 0.18% for Admiral shares. Total savings to Vanguard clients now $69.3 million for the year. ETFPDF 52019 1 Find out which Vanguard index mutual funds can be converted tax-free to Vanguard ETFs The following 18 traditional index mutual funds have corresponding ETFs (exchange-traded funds) that now have lower expense ratios, with savings ranging from 10% to almost 30%. All averages are asset-weighted. In other words, Vanguard’s tax efficiency could save you 13 times as much as its higher expense ratio costs. For example, the average expense ratio across the entire fund industry (excluding Vanguard) was 0.57% in 2019, which equates to $57 for every $10,000 invested. U.S. government backing of Treasury or agency securities applies only to the underlying securities and does not prevent share-price fluctuations. VTWO. The expense ratio is the annual cost paid to fund managers by holders of mutual funds or ETFs. The expense ratio is calculated by taking the fund’s operating costs and dividing them by the assets under management (AUM). 0.08%. For many investors, Vanguard’s low expense ratio is the reason why the company is the best investment advisor there is. Today, Vanguard manages $3.6 trillion in U.S. fund assets and the average expense ratio is 0.18%, or less than one-fifth that of the 1.01% industry average. And those expenses directly affect your bottom line. Average AUM is based on daily average assets during a month, which are then averaged over the 12 months of the fiscal year. All investing is subject to risk, including the possible loss of the money you invest. For example, the Vanguard Total Stock Market Index fund’s Admiral shares (VTSAX), has an expense ratio of 0.04%. But expense ratios are less obvious because they're not itemized on your account statements or confirmations. VCIT expense ratio is 0.05%, the same as BND expense ratio. 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