Vanguard has reduced the fees charged on 13 of its European domiciled ETFs.
Sean Hagerty, Head of Vanguard for Europe.
The products benefiting from reductions comprise seven equity and six fixed income ETFs, including some of the asset manager’s largest ETF products in Europe.
Collectively, the 13 ETFs house in excess of $13 billion in assets.
The reductions vary from between two and seven basis points and are set to save investors approximately $4.2 million per year, based on current assets under management.
The ETFs maintain a range of listings across Europe, including on LSE, Xetra, Borsa Italiana, SIX Swiss Exchange and Euronext Amsterdam.
The seven equity ETFs are linked to FTSE Russell indices and provide broad coverage of core exposures, including global, global developed, emerging market, Europe, Europe ex-UK, Japan and Asia Pacific ex-Japan markets.
Similarly, the fixed income ETFs are linked to Bloomberg Barclays indices and provide exposure to core bond markets, including UK gilts, US Treasuries, eurozone sovereign bonds, and US dollar and euro-denominated investment-grade credit.
Commenting on the fee reductions, Sean Hagerty, Head of Vanguard for Europe, said, “For too long, investors have been poorly served with high-cost, complex investments. Since 1975, Vanguard has led the way in giving investors a fair deal through good-value, straight-forward, and high-quality investments. However, more work needs to be done to ensure investors understand the impact of costs on investment returns.
“There is still a misconception that the more you pay for an investment, the better it performs. In reality, costs really impact the returns investor make – every pound paid in fees is a pound off investors’ returns. Investors cannot control the markets, but they can control the fees they pay.”
Following the fee reductions, the average expense ratio across Vanguard’s passively managed ETF line-up is now just 0.10%.
The reductions are as follows:
Equity
Vanguard FTSE All-World UCITS ETF ($3.7bn AUM) down 3 basis points to OCF 0.22%
Vanguard FTSE Developed Asia Pacific ex Japan UCITS ETF ($380m) down 7 basis points to 0.15%
Vanguard FTSE Developed Europe ex UK UCITS ETF ($1.5bn) down 2 basis points to 0.10%
Vanguard FTSE Developed Europe UCITS ETF ($2.1bn) down 2 basis points to 0.10%
Vanguard FTSE Developed World UCITS ETF ($350m) down 6 basis points to 0.12%
Vanguard FTSE Emerging Markets UCITS ETF ($1.9bn) down 3 basis points to 0.22%
Vanguard FTSE Japan UCITS ETF ($1.9bn) down 4 basis points to 0.15%
Fixed income
Vanguard EUR Corporate Bond UCITS ETF ($270m) down 3 basis points to 0.09%
Vanguard EUR Eurozone Government Bond UCITS ETF ($240m) down 5 basis points to 0.07%
Vanguard UK Gilt UCITS ETF ($200m) down 5 basis points to 0.07%
Vanguard USD Corporate 1-3 Year Bond UCITS ETF ($190m) down 6 basis points to 0.09%
Vanguard USD Corporate Bond UCITS ETF ($280m) down 3 basis points to 0.09%
Vanguard USD Treasury Bond UCITS ETF ($220m) down 5 basis points to 0.07%