It starts with our unique structure. Vanguard is owned by the funds, which in turn are owned by their investors (you). That means we don’t have to generate profits for outside owners or public shareholders.
But that’s not where the story ends. We’re constantly looking for opportunities to provide you with more value and help increase your chances for investing success.
It’s not just about low costs (but it partly is)
Here are the most recent examples of how we’re working to give you the best value on your investments:
- Announcing lower expense ratios, again and again. We’re reporting lower expenses on 5 funds and ETFs. You may have seen our announcement in December that we lowered expense ratios on 56 funds and ETFs (exchange-traded funds) in 2019. We’re still at it. Here are the 5 funds we added to the list:
This is the most recent example of how we’re reducing barriers to success. Lower expense ratios in mutual funds and ETFs add up. Over the past 4 years, we’ve created about $750 million in estimated cumulative savings for our clients from expense ratio reductions.*
- Cutting trading costs. We recently announced $0 commissions for online trades in Vanguard Brokerage Accounts. We previously eliminated commissions on many ETFs. This was an expansion of our lower trading fees.
- Providing value from scale. Vanguard manages about $6.2 trillion worldwide.** Our global scale helps maximize returns, keep costs low, attract more investors, and give investors excellent long-term results with no unnecessary risks. Whether you’re looking for index funds, actively-managed funds, or competitive cash accounts such as money market funds, you can find them here.
- Offering consistent performance. Our relentless focus on reducing fund costs is reflected in the track record of our investment lineup. Vanguard funds have outperformed the average returns of their peer funds over the short term and the long term. 87% of Vanguard funds have outperformed their peer-group averages over the last 10 years.***
- Offering products and services that are right for you. Whether you’re a DIY investor who’s comfortable managing your own portfolio, or someone who’d prefer more support, you can find what you need at Vanguard. We offer a variety of fund types, so you can find investments that fit your needs. We also offer advice services, so you can be as hands-on or as hands-off with your investments as you want.
Becoming a successful investor isn’t easy. It takes time, discipline, and a carefully selected portfolio. Every dollar you add to your investments makes a difference. So does every fraction in expenses. We know you’re doing your part to help your investments grow. We’re doing ours. We’ll keep you updated as we continue to work toward our mission of giving you the best chance for investment success.
*Based on expense ratio reductions reported on more than 500 mutual fund and ETF shares, based on total assets. Cumulative figure for all share classes from the 2015–16 fiscal year through the 2018–19 fiscal year for the U.S.-domiciled funds. Estimated savings is the difference between prior and current expense ratios multiplied by average assets under management (AUM). Average AUM is based on daily average assets during a month, which are then averaged over the 12 months of the fiscal year.
**As of December 31, 2019.
***For the 10-year period ended December 31, 2019, 9 of 9 Vanguard money market funds, 58 of 73 Vanguard bond funds, 22 of 23 Vanguard balanced funds, and 125 of 140 Vanguard stock funds—for a total of 214 of 245 Vanguard funds—outperformed their Lipper peer-group averages. Only mutual funds and ETFs with a minimum 10-year history were included in the comparison. Results for other time periods will vary. Source: Lipper, a Thomson Reuters Company. The competitive performance data shown represent past performance, which is not a guarantee of future results. View fund performance