Vanguard Lowers Fees On 6 ETFs (VWO, VXUS, VT)
Vanguard, the third-largest U.S. ETF issuer, said it has lowered the expense ratios on six of its ETFs, including the Vanguard MSCI Emerging Markets ETF (NYSE: VWO). VWO, the largest emerging markets ETF, saw its expense ratio cut to 0.2% from 0.22%. The rival iShares MSCI Emerging Markets Index Fund (NYSE: EEM) also pared its expense ratio earlier this year.
Vanguard also lowered the fees on the Vanguard Total World Stock ETF (NYSE: VT) to 0.22% from 0.25%. That gives the $1.6 billion ETF fees that are lower than 85% of comparable funds, according to the Vanguard Web site. The Vanguard FTSE All-World ex-US ETF (NYSE: VEU) now has an expense ratio of 0.18% compared with 0.22% previously. VEU, with $12.5 billion in AUM, now cheaper than 86% of comparable funds, according to Vanguard data.
The Vanguard FTSE All-World ex-US Small Cap ETF (NYSE: VSS) saw its fees reduced to 0.28% from 0.33%. The changes for VWO, VSS, VEU and VT went into effect on February 28.
The Vanguard Total International Stock ETF (NYSE: VXUS) now has an expense ratio of 0.18% down from 0.22%. That makes the ETF cheaper than 86% of similar funds. The Vanguard High Dividend Yield ETF (NYSE: VYM) saw its fees lowered to 0.13% from 0.18%. VYM is now cheaper than 90% of similar funds.
The lower expense ratios for VXUS and VYM went into effect on February 27.
Vanguard isn't the only ETF sponsor to announce fee cuts this week. On Wednesday, Van Eck said it lowered the expense cap on the Market Vectors RVE Hard Assets Producers ETF (NYSE: HAP) to 0.49% from 0.59%.
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