You are here: Home - Investing - Experienced Investor - News -

Vanguard cuts fees across passive range

Written by:
Investment giant Vanguard has slashed fees across 36 funds as part of its commitment to deliver value for money for savers.

The world’s second largest asset manager, which manages £4.7trn of assets, has cut fees on 13 exchange traded funds (ETFs), 22 index funds and the Vanguard Sterling Short-Term Money Market fund.

Vanguard is known for pioneering cheap passive investing, but it also runs 11 actively managed funds available to UK investors.

From today, the average investor will pay a fee of 0.20 per cent down from 0.24 per cent. This covers the entire Vanguard range, including active and passive funds.

The average fee for ETFs and index funds only has gone down to 0.14 per cent from 0.19 per cent.

The cuts follow reductions in May to Vanguard’s UK domiciled actively managed fund range. The Vanguard Global Equity, Vanguard Global Equity Income and the Vanguard Global Balanced funds were cut from 0.6 per cent to 0.48 per cent, while the fee on the Vanguard Global Emerging Markets fund was lowered by 0.02 per cent to 0.78 per cent.

Sean Hagerty, head of Vanguard for Europe, said: “For too long, investors have been poorly served with high-cost, complex investments.

“There is still a misconception that the more you pay for an investment, the better it performs. In reality, costs really impact the returns investors make – every pound paid in fees is a pound of investors’ returns.

“Investors cannot control the markets, but they can control the fees they pay.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Unfamiliar banks woo savers with top rates…is your money safe?

If you’ve been keeping an eye on the savings best buy tables, you’ll have noticed some unfamiliar names lu...

What the base rate rise means for you

The Bank of England has raised the base rate by 0.25% to 0.5% – following on from the increase from 0.1% to ...

How to get help with your energy bills

The rise in the energy price cap from April will mean millions of households will pay hundreds of pounds a yea...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week