Vanguard has decided to reduce the management fees for one of its most popular exchange-traded funds (ETF) by 30 per cent after a thorough evaluation of the pricing of its ETF options.
The investment management firm will lower the fee for its flagship Australian Shares Index ETF, trading on the Australian Securities Exchange (ASX) under the VAS ticker, from 0.10 per cent a year to 0.07 per cent a year, effective from 3 July.
With nearly $12.4 billion invested, the popular ETF focuses on tracking Australian companies and property trusts listed on the ASX.
“We regularly assess our product offer against our commitment to deliver low-cost, high-quality products that are best in class and we aim to continue to enhance our product offer in line with this goal,” Vanguard Australia public relations manager Avi Tan noted.
“This robust review process includes a pricing review of our funds with the aim of passing on any savings to investors where possible.
“As an across-the-board low-cost fund provider, keeping costs low has been an important way that Vanguard has helped investors achieve financial goals and we continue to deliver this benefit to our investors globally.
“We are committed to gradually reducing management fees as our range of broadly diversified funds and ETFs grow in scale.
“In the last 10 years alone, we have delivered over 40 fee reductions across our product range, including our recent fee reduction for our Australian Fixed Income ETF (VAF), passing value back to our Australian investors.”
Vanguard has previously eliminated brokerage fees and reduced the management fees for its ETF offerings, aiming to provide a better experience for investors.
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