Vanguard Cuts Fees on Popular Dividend ETF

Vanguard, the third-largest U.S. ETF sponsor, lowered the annual expense ratio on its popular Vanguard Dividend Appreciation ETF

to 0.1 percent from 0.13 percent effective Tuesday. VIG is the largest dividend ETF by assets with $16.2 billion and has raked in $2.1 billion of that total this year,

. Fee reductions are nothing new for Vanguard, the pioneer of low cost index funds. In February, the firm cut fees

, including popular global funds such as the Vanguard FTSE Emerging Markets ETF

and the Vanguard FTSE Europe ETF

. VIG is not the first dividend ETF Vanguard has lowered fees on this year. In February, fees on the Vanguard High Dividend Yield ETF

were lowered to

. Prior to the fee reduction, VIG was cheaper than 88 percent of comparable ETFs,

. VIG's top-10 holdings including PepsiCo

, Wal-Mart

and Chevron

. Eight of VIG's top-10 holdings are Dow components with PepsiCo and Abbott Labs

the exceptions. For more on ETFs, click

.