This morning, Vanguard announced the “largest fee cut” in its history—the latest salvo in the ongoing fee war between the fund providers.
On February 1, Vanguard lowered the expense ratios of 87 funds. Fees dropped by one basis point (0.01%) to six basis points (0.06%) depending on the fund, which, according to Vanguard’s math, will save investors $350 million this year.
The list below shows the expense ratios before and after the reduction for all 168 share classes.
Here’s my initial reaction:
First, this is a nice win for investors. My following comments shouldn’t diminish that, however, the race to zero has already been run!