Vanguard has announced reductions in expense ratios for 84 mutual fund and exchange-traded share classes across 53 funds, resulting in nearly $250 million in fee cuts for 2026. This move brings the total estimated investor savings from Vanguard’s fee reductions over the past two years to almost $600 million, marking the company’s largest-ever two-year combined cost reduction.
The average expense ratio across all of Vanguard’s U.S. funds is now 0.06% as of December 31, 2025. According to Salim Ramji, Chief Executive Officer at Vanguard, “Vanguard is investor-owned—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. When investors keep more of what they earn, the benefits compound over the long term, helping our clients achieve their most important financial goals.”
The cost reductions apply to both index and active products including equity, bond, money market, and multi-asset solutions. The company reports that 84% of its funds have outperformed peer group averages over the last decade; among actively managed bond funds, that figure rises to 88%. Greg Davis, President and Chief Investment Officer at Vanguard stated: “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. 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.”
Notably impacted by these changes are major ETFs such as Growth ETF (VUG), Value ETF (VTV), FTSE Emerging Markets ETF (VWO), Dividend Appreciation ETF (VIG), and High Dividend Yield ETF (VYM). The reduced expense ratios are effective immediately.
Founded in 1975, Vanguard operates under an investor-owned structure where shareholders own the funds that own Vanguard itself.
There is no guarantee individual investors will experience direct savings due to these reductions; only certain share classes are affected and estimates may vary based on assets under management at year-end.
The Scottsdale Area Chamber of Commerce promotes business growth through advocacy efforts aimed at community prosperity but has no direct connection with this announcement by Vanguard. The chamber provides networking events and resources for its members while supporting various industries in Scottsdale.
