Vanguard Slashes Fees Across European Fixed Income UCITS ETFs, Enhancing Low-Cost Investing Options

Vanguard has made a sweeping cut in fees across its European fixed income UCITS ETF range that takes effect on July 1, 2025. The change will affect 26 share classes of seven ETFs and is likely to save investors some $3.5 million per year.

Consistent with its long-standing tradition of low-cost investing, Vanguard fee cuts will be applied across a wide range of fixed income strategies — global bonds, U.S. Treasuries, UK gilts, emerging market sovereign debt and euro- and U.S. dollar-denominated corporate bonds. Hedged and unhedged share classes both fall under the cost-cutting program.

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The updated ongoing charges figure (OCF) will position a number of Vanguard’s ETFs as among the lowest-cost across Europe for core fixed income exposures. For instance, the Vanguard Global Aggregate Bond UCITS ETF (hedged share class) will have its OCF reduced from 0.10% to 0.08%, the Vanguard USD Treasury Bond UCITS ETF‘s unhedged share class will be reduced from 0.07% to 0.05%, and the hedged share class will be lowered from 0.12% to 0.10%.

In the same manner, the Vanguard U.K. Gilt UCITS ETF and the Vanguard USD Emerging Markets Government Bond UCITS ETF (unhedged) will also see cut OCFs. Corporate bond exposures like the Vanguard EUR Corporate Bond UCITS ETF, the Vanguard ESG EUR Corporate Bond UCITS ETF and the Vanguard USD Corporate Bond UCITS ETF will also have fee reductions

Vanguard reiterated that its purpose is to serve all investors through the delivery of fair value and the highest chance of investment success. With these recent reductions, the company further reinforces its status as Europe’s lowest-cost provider of average fixed-income ETF range.

“In investing, you get what you don’t pay for,” the company said, pointing out that cheaper fees traditionally equate to improved net returns for investors.

As global central banks continue to rebalance interest rate policies and markets continue to react to macroeconomic changes, Vanguard’s fee cuts are likely to entice both institutional and individual investors looking for cost-effective fixed income investments.

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