Vanguard broadens access to low-cost index investing

November 19, 2018

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Tim Buckley

Tim Buckley
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Vanguard announced today that it is broadening access to lower-cost Admiral™ Shares of its index funds. A filing was made with the Securities and Exchange Commission to:

  • Launch Admiral share classes for the following funds in January 2019:
    • Vanguard FTSE Social Index Fund
    • Vanguard FTSE All-World ex-US Small-Cap Index Fund
    • Vanguard High Dividend Yield Index Fund
    • Vanguard Long-Term Bond Index Fund
    • Vanguard Total World Stock Index Fund
  • Lower the Admiral share class minimum investment from $10,000 to $3,000 for the majority of Vanguard's index funds pdf, effective immediately.

"No other firm in the industry has demonstrated Vanguard's track record of delivering cost savings and value to its clients," said Vanguard CEO Tim Buckley. "Our unique, client-owned structure1 enables us to consistently pass along economies of scale and lower the cost of investing for our clients, so they keep more of their returns."

With the lowering of the Admiral Shares minimum investment, access to Investor Shares of the funds will eventually be limited to:

  • Portfolio construction of funds of funds, including the suite of Vanguard Target Retirement Funds.
  • Select defined contribution recordkeeping clients.

Delivering broader access to low-cost investing demonstrates our ongoing commitment to provide greater value to our clients. Over the last three years alone, more than 500 Vanguard mutual fund and ETF hares reported expense ratio decreases for an estimated $625 million in cumulative savings (based on total assets).2 It is our 40-plus years of a client-first business philosophy that allows Vanguard to stand apart from its competitors.

1 Vanguard is client-owned. As client owners, individual shareholders own the funds that own Vanguard.

2 Cumulative figure for all share classes from the 2015-16 fiscal year through the 2017-18 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. Average AUM is based on daily average assets during a month, which are then averaged over the 12 months of the fiscal year.

Notes:

  • All investing is subject to risk, including the possible loss of the money you invest.