Vanguard announced it is rolling out broad-based expense-ratio reductions across its fund lineup, projecting the changes will deliver more than half a billion dollars in investor savings in 2025 and 2026. The company said the latest round includes lower expense ratios for 84 mutual fund and ETF share classes across 53 funds, representing nearly $250 million in fee reductions expected in 2026.
The firm said the combined reductions over the past two years total nearly $600 million in investor savings, the largest two-year combined cost reduction to date. Vanguard also noted the average expense ratio across its product lineup, which now stands at 0.06 percent, reinforcing its emphasis on long-term cost leadership.
Vanguard positioned the move as an extension of its investor-owned structure and its long-stated focus on helping clients keep more of their returns over time. The company also tied cost discipline to outcomes, citing peer relative performance results for periods ending December 31, 2025. Vanguard said 84 percent of its funds outperformed their peer group averages over the past decade, including 88 percent of its actively managed fixed income funds, based on LSEG Lipper data for funds with a minimum ten-year history.
The reductions span both index and active strategies across equities, fixed income, money markets, and multi-asset offerings. Vanguard said the changes include lower costs on its U.S. equity 9-box lineup, including the Growth ETF and Value ETF, as well as other large-cap, mid-cap, and small-cap growth, value, and blend funds. The firm also said it reduced fees for the FTSE Emerging Markets ETF and for dividend-focused ETFs, including its Dividend Appreciation ETF and High Dividend Yield ETF. Vanguard said the expense ratio reductions are effective immediately.
KEY QUOTES
“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.”
Salim Ramji, Vanguard’s Chief Executive Officer
“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.”
Greg Davis, Vanguard President and Chief Investment Officer
