Vanguard To Deliver More Than Half a Billion in Expected Savings To Investors Since 2025

Vanguard adds nearly $250 million¹ in fee reductions across 53 funds

Fee cuts average 27% across impacted funds²

VALLEY FORGE, Pa., Feb. 2, 2026 /PRNewswire/ -- Continuing its mission to help clients achieve investment success, Vanguard today announced significant and wide-ranging cost reductions across its investment lineup. Vanguard has lowered expense ratios for 84 mutual fund and exchange-traded share classes across 53 funds, amounting to nearly $250 million in fee reductions in 2026.

Over the past two years, Vanguard has reduced fees on most of its fund lineup³ totaling nearly $600 million⁴ in savings for investors—Vanguard's largest-ever two-year combined cost reduction. Vanguard's product lineup across all asset classes and styles now has an average expense ratio of 0.06%,⁵ reinforcing the firm's longstanding cost leadership position. These consistently low costs help investors keep more of their returns, contributing to stronger long‑term performance.

"Vanguard is investor-owned⁶—we have no outside stockholders or private owners profiting from our clients. These fee reductions— set to deliver more than half a billion dollars in savings across 2025 and 2026—are a clear expression of our purpose and commitment to our clients as owners," said Salim Ramji, Vanguard's Chief Executive Officer. "When investors keep more of what they earn, the benefits compound over the long term, helping our clients achieve their most important financial goals."

Strong performance delivered by low-cost solutions

Vanguard offers low costs across index and active products, spanning equity, bond, money market, and multi-asset solutions. That track record of lower costs is directly correlated to the long-term performance of the firm's mutual funds and ETFs–84% of Vanguard funds have outperformed their peer group averages over the past decade, including 88% of our active fixed income funds.⁷ This latest expense ratio reduction enables clients to retain an even greater share of their returns, and those savings will continue to compound over time.

"Vanguard helped pioneer the modern index fund, and the principles behind that innovation remain core to our approach today: broad diversification, transparency, and disciplined, long‑term investing," said Greg Davis, Vanguard President and Chief Investment Officer. "Indexing was once considered unconventional — now it's an indispensable tool for millions of investors. We're proud to have played a role in demonstrating how simple, low‑cost active and index strategies can drive durable outcomes for investors."

Lower costs for Vanguard ETFs

Vanguard's wide-ranging cost reductions include the firm's suite of U.S. equity 9-box funds, including the flagship Growth ETF (VUG) and Value ETF (VTV) along with our other large-, mid-, and small-cap growth, value, and blend funds. Vanguard has also lowered fees on the FTSE Emerging Markets ETF (VWO), and Vanguard's dividend-focused U.S. equity ETFs, Dividend Appreciation ETF (VIG) and High Dividend Yield ETF (VYM).

A full list of expense ratio reductions can be found here. The expense ratio reductions are effective immediately.

¹ Savings due to the reduction in expense ratios were calculated on a share class basis for each fund for which there is a Vanguard-initiated reduction. To estimate 2026 savings, 2025 year‑end AUM was multiplied by the 2026 reduced expense ratio.

² Average change in expense ratio between 2025 and 2026 for all share classes receiving expense ratio reductions in 2026.

³ More than 60% of Vanguard's funds have had an expense ratio reduction in 2025 or 2026.

⁴ Investor savings from expense ratio reductions were calculated at the share‑class level for all Vanguard‑initiated reductions. To estimate 2025 savings, each fund's 2024 year‑end AUM was multiplied by its 2025 reduced expense ratio. To estimate 2026 savings, 2025 year‑end AUM was multiplied by the 2026 reduced expense ratio. The total estimated savings for investors holding these funds in 2024 and 2025 is the sum of these two amounts.

⁵ Asset-weighted average U.S. fund expenses, as a share of 2025 average net U.S. assets. Figures as of December 31, 2025.

⁶ Vanguard is owned by its funds, which are owned by Vanguard's fund shareholder clients. 

⁷ Source: LSEG Lipper. Number of Vanguard funds that outperformed their Lipper peer-group averages for periods ended December 31, 2025: For the ten-year period, 275 of 326 Vanguard funds, and 42 of 48 actively managed bond funds. Results will vary for other time periods. Only funds with a minimum ten-year history were included in the comparison. Note that the competitive performance data shown represent past performance, which is not a guarantee of future results, and that all investments are subject to risks. For the most recent performance, visit our website at vanguard.com/performance.

About Vanguard

Founded in 1975, Vanguard is one of the world's leading investment management companies. The firm offers investments, advice, and retirement services to tens of millions of individual investors around the globe—directly, through workplace plans, and through financial intermediaries. Vanguard operates under a unique, investor-owned structure where Vanguard fund shareholders own the funds, which in turn own Vanguard. As such, Vanguard adheres to a simple purpose: To take a stand for all investors, to treat them fairly, and to give them the best chance for investment success. For more information, visit vanguard.com

Comparison uses AUM as of December 31, 2025. There is no guarantee that any individual investor will save money due to the reductions in expense ratios. Figures are estimates and should not be relied on. For illustrative purposes only. See for details.

Vanguard is reducing expense ratios for certain share classes of some funds. There is no guarantee that any individual investor will save money due to the reductions in fund expense ratios. Not all fund share classes will have a reduced expense ratio and therefore not all investors will experience the estimated savings. Investors that purchase the relevant funds after the expense ratios have been reduced will not experience savings. Savings means future money not spent on expense ratios, and does not entail a rebate or deposit of any sort. Savings figures are estimates and should not be relied upon. Savings is based on data as of December 31, 2025; if other data is used, savings may differ. Estimated savings accrue to existing investors holding relevant share classes for 2025 and 2026. For illustrative purposes only. Past performance is not indicative of future results.

Visit vanguard.com to obtain a prospectus, or, if available, a summary prospectus. The prospectus contains investment objectives, risks, charges, expenses, and other information; read and consider carefully before investing. 

Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.

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SOURCE Vanguard