Market Overview

Vanguard Taking The Ax to Fees On 10 Sector ETFs


Vanguard, the third-largest U.S. ETF issuer, is taking the ax to expense ratios on ten of its popular sector ETFs, a move that will intensify the firn's rivalry with the SPDRs family of sector funds.

The 10 Vanguard ETFs will mostly see their expense ratios pared to 0.19% from 0.24%. That undercuts the comparable by SPDR ETFs by one basis point. Most of the SPDRs sector ETFs currently have expense ratios of 0.2%.

Vanguard announced the changes in a filing with the Securities and Exchange Commission last week, but the funds still show expense ratios of 0.24% on Vanguard's Web site.

The ETFs undergoing the changes are the Vanguard Consumer Discretionary ETF (NYSE: VCR), Vanguard Consumer Staples ETF (NYSE: VDC), Vanguard Energy ETF (NYSE: VDE), Vanguard Health Care ETF (NYSE: VHT), Vanguard Industrials ETF (NYSE: VIS), Vanguard Information Technology ETF (NYSE: VGT), Vanguard Materials ETF (NYSE: VAW), Vanguard Telecommunication Services ETF (NYSE: VOX) and the Vanguard Utilities ETF (NYSE: VPU).

The Vanguard Financials ETF (NYSE: VFH) will see its fees cut to 0.23% from 0.27%, but the new expense ratio is still above the 0.2% offered by the Financial Select Sector SPDR (NYSE: XLF).

Vanguard had 64 ETFs with $173.3 billion in assets under management at the end of November, according to data from the National Stock Exchange.

Posted-In: News Sector ETFs Intraday Update Markets Trading Ideas ETFs


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