Vanguard Reports Expense Ratio Changes for Five Funds

Vanguard Reports Expense Ratio Changes for Five Funds

Valley Forge, Pennsylvania, May 27, 2022

Vanguard today reported expense ratio changes for five mutual funds across multiple share classes. These changes align to funds with fiscal years ending January 2022 and represent an aggregate $2.8 million in net savings for investors [1].

Expense ratio changes occur for a variety of reasons, including asset growth and operational efficiencies. For most of Vanguard’s external advisory arrangements, the advisor’s fee is also subject to an adjustment up or down based on their investment performance relative to the total return of an appropriate benchmark, typically over a three-year or five-year period. Such arrangements strengthen the alignment of interests between the advisor and fund shareholders. Increases in advisory fees because of these arrangements are a recognition of outperformance on behalf of #fund #shareholders. 

Vanguard fund expense ratio changes

Founded in 1975, Vanguard is one of the world's leading investment management companies. The firm offers investments, advice, and retirement services to individual investors, institutions, and financial professionals. Vanguard operates under a unique, #investor-owned structure where Vanguard fund shareholders own the funds, which in turn own Vanguard. As such, Vanguard adheres to a simple purpose: To take a stand for all investors, to treat them fairly, and to give them the best chance for investment success. For more information, visit vanguard.com.

1.) Estimated savings for the identified funds is the difference between prior and current expense ratios multiplied by the average assets under management (AUM). Average AUM is based on daily average assets during a month, which are then averaged over the 12 months of the fiscal year ending January 2022.

For more information about Vanguard funds, visit vanguard.com to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.

All investing is subject to risk, including the possible loss of the money you invest. Past performance is no guarantee of future returns.

ESG portfolios are subject to ESG investment risk, which is the chance that the stocks or bonds screened by the data provider for ESG criteria generally will underperform the market as a whole or, in the aggregate, will trail returns of other portfolios screened for ESG criteria. The data provider’s assessment of a company, based on the company’s level of involvement in a particular industry or the data provider’s own ESG criteria, may differ from that of other portfolios or of the advisor’s or an investor’s assessment of such company. As a result, the companies deemed eligible by the data provider may not reflect the beliefs and values of any particular investor and certain screens may not exhibit positive or favorable ESG characteristics. The evaluation of companies for ESG screening or integration is dependent on the timely and accurate reporting of ESG data by the companies. The weight given to ESG factors for active non-ESG funds may vary across types of investments, industries, regions and issuers; may change over time; and not every ESG factor may be identified or evaluated. Where ESG risk factor analysis is used as one part of an overall investment process (as is the case for actively managed equity and fixed income non-ESG Funds ), such Funds may still invest in securities of issuers that all market participants may not view as ESG-focused or that may be viewed as having a high ESG risk profile.

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