Effective February 1, 2025, the company has lowered the expense ratios of 168 share classes across 87 funds.
Announcing the largest expense ratio reduction in Vanguard history

Once again, Vanguard is lowering the cost of investing. Effective February 1, 2025, the firm reduced expense ratios on 168 share classes across 87 funds. The expense ratio reductions are expected to save investors more than $350 million this year alone.1
Why investment costs matter
Vanguard Founder John C. Bogle explained why investment costs matter this way:
In investing, realize that you get what you don’t pay for. Whatever future returns the markets are generous enough to deliver, few investors will succeed in capturing 100% of those returns, simply because of the high costs of investing—all those commissions, management fees, investment expenses, yes, even taxes—so pare them to the bone.2
May 1 will mark Vanguard’s 50th anniversary. All along, we have emphasized the importance of limiting the cost of investing. Lower costs leave more money in investors’ funds and raise their potential returns. Indeed, across the industry, lower-cost funds have historically outperformed higher-cost funds on a net-of-expenses basis.3 Over 90% of Vanguard active fixed income funds and 88% of Vanguard equity funds outperformed their Lipper peer group averages over the past ten years.4
Lower-cost portfolios tend to outperform higher-cost ones
At Vanguard, we believe our funds’ impressive long-term performance owes much to their low costs. For the 10 years ended December 31, 2024, 84% of our funds outpaced the average results of competing funds. The performance of our actively managed fixed income funds has been especially strong: 91% of our active bond funds and 100% of our money market funds have outpaced their peers’ average results.5
Vanguard executives comment on expense ratio reductions
Vanguard Chief Executive Officer Salim Ramji and President and Chief Investment Officer Greg Davis discuss the expense ratio reductions in this brief video.

Video length: 1 minute 48 seconds
Massy Williams: Salim, Greg, some very exciting news we have to share with investors: Vanguard announced the largest fee cut in our history, lowering expense ratios across 168 mutual fund and ETF share classes by a total of more than $350 million this year.
Salim Ramji: Yeah, it is really exciting. This fee cut speaks to what our founder, Jack Bogle, set out to do, which was create an investment company that was designed for one constituency, and that's our investors. Bogle had a great phrase: “You get what you don’t pay for.”
Massy Williams: That’s correct.
Salim Ramji: There’s a false dichotomy between, Do you want great performance or high quality, or do you want low costs? At Vanguard, you can get both. This is over $350 million of estimated savings—the largest expense cut in our history. Since 1975, we've actually reduced our funds' expense ratios more than 2,000 times.
Greg Davis: Lower fees mean fund investors can keep more of their returns and a competitive edge for our funds.
When you think about our actively managed funds, our managers don't have to take unnecessary risk to earn back our fees. Our financial model and structure creates a virtuous cycle of economies of scale, where we can continue to reduce fees and invest in things like technology and talent. And as a result, our edge just keeps getting sharper.
Massy Williams: Thank you both. Just another example of our commitment to saving our investors over $350 million and helping to give them the best chance for investment success.
Following our latest expense ratio reductions, Vanguard funds are less expensive than ever. Consider that:
- Overall, 86% of Vanguard mutual fund and ETF assets are in the lowest-cost deciles of their peer groups.6
- Our average expense ratio for index fixed income ETFs is only 0.037%.7
- Our active fixed income ETFs have an average expense ratio of 0.105%—the lowest among leading issuers of such ETFs.8
Vanguard expense ratio cuts, explained
Our lower fees are the estimated annual operating costs of the affected fund share classes, expressed as percentages of their average net assets. Also known as their expense ratios, the fees are detailed in the funds’ prospectuses. The prospectuses of all affected funds were updated today in filings with the Securities and Exchange Commission. The amended prospectuses are available on the Vanguard Investment Products List.
Operating costs generally are deducted from the income that mutual funds and exchange-traded funds earn on their holdings. Expense ratios may cover investment advisory fees, marketing and distribution expenses, brokerage fees, and custodial, transfer agency, legal, and accounting fees.
All Vanguard share classes with reduced expense ratios, effective February 1, 2025
Vanguard fund | Old expense ratios | New expense ratios |
---|---|---|
California Intermediate-Term Tax-Exempt Fund (Investor Shares) | 0.17% | 0.14% |
California Long-Term Tax-Exempt Fund (Investor Shares) | 0.17% | 0.14% |
California Municipal Money Market Fund (Investor Shares) | 0.16% | 0.12% |
Capital Opportunity Fund (Admiral™ Shares) | 0.36% | 0.35% |
Commodity Strategy Fund (Admiral Shares) | 0.21% | 0.16% |
Communication Services ETF (ETF Shares) | 0.10% | 0.09% |
Communication Services Index Fund (Admiral Shares) | 0.10% | 0.09% |
Consumer Discretionary ETF (ETF Shares) | 0.10% | 0.09% |
Consumer Discretionary Index Fund (Admiral Shares) | 0.10% | 0.09% |
Consumer Staples ETF (ETF Shares) | 0.10% | 0.09% |
Consumer Staples Index Fund (Admiral Shares) | 0.10% | 0.09% |
Developed Markets Index Fund (Institutional Shares) | 0.06% | 0.03% |
Developed Markets Index Fund (Admiral Shares) | 0.08% | 0.05% |
Developed Markets Index Fund (Institutional Plus Shares) | 0.05% | 0.02% |
Dividend Appreciation ETF (ETF Shares) | 0.06% | 0.05% |
Dividend Appreciation Index Fund (Admiral Shares) | 0.08% | 0.07% |
Emerging Market Government Bond ETF (ETF Shares) | 0.20% | 0.15% |
Emerging Market Government Bond Index Fund (Institutional Shares) Purchase fee: 0.75% |
0.18% | 0.13% |
Emerging Markets Bond Fund (Admiral Shares) | 0.40% | 0.35% |
Emerging Markets Bond Fund (Investor Shares) | 0.55% | 0.50% |
Emerging Markets Stock Index Fund (Admiral Shares) | 0.14% | 0.13% |
Emerging Markets Stock Index Fund (Institutional Plus Shares) | 0.08% | 0.07% |
Emerging Markets Stock Index Fund (Institutional Shares) | 0.10% | 0.09% |
Energy ETF (ETF Shares) | 0.10% | 0.09% |
Energy Index Fund (Admiral Shares) | 0.10% | 0.09% |
ESG International Stock ETF (ETF Shares) | 0.12% | 0.10% |
European Stock Index Fund (Admiral Shares) | 0.11% | 0.08% |
European Stock Index Fund (Institutional Plus Shares) | 0.08% | 0.05% |
European Stock Index Fund (Institutional Shares) | 0.09% | 0.06% |
Extended Duration Treasury ETF (ETF Shares) | 0.06% | 0.05% |
Extended Duration Treasury Index Fund (Institutional Shares) Purchase fee: 0.50% |
0.06% | 0.05% |
Extended Duration Treasury Index Fund (Institutional Plus Shares) Purchase fee: 0.50% |
0.04% | 0.03% |
Extended Market ETF (ETF Shares) | 0.06% | 0.05% |
Extended Market Index Fund (Admiral Shares) | 0.06% | 0.05% |
Financials ETF (ETF Shares) | 0.10% | 0.09% |
Financials Index Fund (Admiral Shares) | 0.10% | 0.09% |
FTSE All-World ex-US ETF (ETF Shares) | 0.07% | 0.04% |
FTSE All-World ex-US Index Fund (Institutional Shares) | 0.08% | 0.05% |
FTSE All-World ex-US Index Fund (Admiral Shares) | 0.11% | 0.08% |
FTSE All-World ex-US Index Fund (Institutional Plus Shares) | 0.06% | 0.03% |
FTSE All-World ex-US Small-Cap Index Fund (Institutional Shares) | 0.12% | 0.10% |
FTSE Developed Markets ETF (ETF Shares) | 0.06% | 0.03% |
FTSE Emerging Markets ETF (ETF Shares) | 0.08% | 0.07% |
FTSE Europe ETF (ETF Shares) | 0.09% | 0.06% |
FTSE Pacific ETF (ETF Shares) | 0.08% | 0.07% |
FTSE Social Index Fund (Admiral Shares) | 0.14% | 0.13% |
FTSE Social Index Fund (Institutional Shares) | 0.12% | 0.07% |
Global Equity Fund (Investor Shares) | 0.42% | 0.39% |
Growth and Income Fund (Admiral Shares) | 0.25% | 0.24% |
Health Care ETF (ETF Shares) | 0.10% | 0.09% |
Health Care Index Fund (Admiral Shares) | 0.10% | 0.09% |
Industrials ETF (ETF Shares) | 0.10% | 0.09% |
Industrials Index Fund (Admiral Shares) | 0.10% | 0.09% |
Information Technology ETF (ETF Shares) | 0.10% | 0.09% |
Information Technology Index Fund (Admiral Shares) | 0.10% | 0.09% |
Intermediate-Term Bond ETF (ETF Shares) | 0.04% | 0.03% |
Intermediate-Term Bond Index Fund (Admiral Shares) | 0.07% | 0.06% |
Intermediate-Term Bond Index Fund (Institutional Plus Shares) | 0.04% | 0.03% |
Intermediate-Term Bond Index Fund (Institutional Shares) | 0.05% | 0.04% |
Intermediate-Term Corporate Bond ETF (ETF Shares) | 0.04% | 0.03% |
Intermediate-Term Corporate Bond Index Fund (Admiral Shares) Purchase fee: 0.25% |
0.07% | 0.06% |
Intermediate-Term Corporate Bond Index Fund (Institutional Shares) Purchase fee: 0.25% |
0.05% | 0.04% |
Intermediate-Term Investment-Grade Fund (Admiral Shares) | 0.10% | 0.09% |
Intermediate-Term Treasury ETF (ETF Shares) | 0.04% | 0.03% |
Intermediate-Term Treasury Index Fund (Admiral Shares) | 0.07% | 0.06% |
Intermediate-Term Treasury Index Fund (Institutional Shares) | 0.05% | 0.04% |
International Dividend Appreciation ETF (ETF Shares) | 0.15% | 0.10% |
International Growth Fund (Admiral Shares) | 0.26% | 0.25% |
International High Dividend Yield ETF (ETF Shares) | 0.22% | 0.17% |
International High Dividend Yield Index Fund (Admiral Shares) Purchase fee: 0.25% Redemption fee: 0.25% |
0.22% | 0.17% |
International Value Fund (Investor Shares) | 0.39% | 0.36% |
Long-Term Bond Index Fund (Admiral Shares) Purchase fee: 0.50% |
0.07% | 0.06% |
Long-Term Bond ETF (ETF Shares) | 0.04% | 0.03% |
Long-Term Bond Index Fund (Institutional Plus Shares) Purchase fee: 0.50% |
0.04% | 0.03% |
Long-Term Bond Index Fund (Institutional Shares) Purchase fee: 0.50% |
0.05% | 0.04% |
Long-Term Corporate Bond Index Fund (Admiral Shares) Purchase fee: 1.00% |
0.07% | 0.06% |
Long-Term Corporate Bond ETF (ETF Shares) | 0.04% | 0.03% |
Long-Term Corporate Bond Index Fund (Institutional Shares) Purchase fee: 1.00% |
0.05% | 0.04% |
Long-Term Investment-Grade Fund (Admiral Shares) | 0.11% | 0.10% |
Long-Term Treasury ETF (ETF Shares) | 0.04% | 0.03% |
Long-Term Treasury Index Fund (Admiral Shares) | 0.07% | 0.06% |
Long-Term Treasury Index Fund (Institutional Shares) | 0.05% | 0.04% |
Massachusetts Tax-Exempt Fund (Investor Shares) | 0.13% | 0.09% |
Materials ETF (ETF Shares) | 0.10% | 0.09% |
Materials Index Fund (Admiral Shares) | 0.10% | 0.09% |
Mortgage-Backed Securities ETF (ETF Shares) | 0.04% | 0.03% |
Mortgage-Backed Securities Index Fund (Admiral Shares) | 0.07% | 0.06% |
Mortgage-Backed Securities Index Fund (Institutional Shares) | 0.05% | 0.04% |
Municipal Money Market Fund (Investor Shares) | 0.15% | 0.11% |
New Jersey Long-Term Tax-Exempt Fund (Investor Shares) | 0.17% | 0.14% |
New York Long-Term Tax-Exempt Fund (Investor Shares) | 0.17% | 0.14% |
New York Municipal Money Market Fund (Investor Shares) | 0.16% | 0.11% |
Ohio Long-Term Tax-Exempt Fund (Investor Shares) | 0.13% | 0.09% |
Pacific Stock Index Fund (Admiral Shares) | 0.10% | 0.09% |
Pacific Stock Index Fund (Institutional Shares) | 0.08% | 0.07% |
Pennsylvania Long-Term Tax-Exempt Fund (Investor Shares) | 0.17% | 0.14% |
PRIMECAP Core Fund (Investor Shares) | 0.46% | 0.43% |
PRIMECAP Fund (Admiral Shares) | 0.31% | 0.29% |
PRIMECAP Fund (Investor Shares) | 0.38% | 0.37% |
Russell 1000 ETF (ETF Shares) | 0.08% | 0.07% |
Russell 1000 Growth ETF (ETF Shares) | 0.08% | 0.07% |
Russell 1000 Growth Index Fund (Institutional Shares) | 0.07% | 0.06% |
Russell 1000 Index Fund (Institutional Shares) | 0.07% | 0.06% |
Russell 1000 Value ETF (ETF Shares) | 0.08% | 0.07% |
Russell 1000 Value Index Fund (Institutional Shares) | 0.07% | 0.06% |
Russell 2000 ETF (ETF Shares) | 0.10% | 0.07% |
Russell 2000 Growth ETF (ETF Shares) | 0.15% | 0.10% |
Russell 2000 Growth Index Fund (Institutional Shares) | 0.08% | 0.07% |
Russell 2000 Index Fund (Institutional Shares) | 0.08% | 0.07% |
Russell 2000 Value ETF (ETF Shares) | 0.15% | 0.10% |
Russell 2000 Value Index Fund (Institutional Shares) | 0.08% | 0.07% |
Russell 3000 ETF (ETF Shares) | 0.10% | 0.07% |
Russell 3000 Index Fund (Institutional Shares) | 0.08% | 0.07% |
S&P 500 Growth ETF (ETF Shares) | 0.10% | 0.07% |
S&P 500 Growth Index Fund (Institutional Shares) | 0.08% | 0.05% |
S&P 500 Value ETF (ETF Shares) | 0.10% | 0.07% |
S&P 500 Value Index Fund (Institutional Shares) | 0.08% | 0.05% |
S&P Mid-Cap 400 ETF (ETF Shares) | 0.10% | 0.07% |
S&P Mid-Cap 400 Growth ETF (ETF Shares) | 0.15% | 0.10% |
S&P MidCap 400 Growth Index Fund (Institutional Shares) | 0.08% | 0.03% |
S&P MidCap 400 Index Fund (Institutional Shares) | 0.08% | 0.03% |
S&P Mid-Cap 400 Value ETF (ETF Shares) | 0.15% | 0.10% |
S&P MidCap 400 Value Index Fund (Institutional Shares) | 0.08% | 0.03% |
S&P Small-Cap 600 ETF (ETF Shares) | 0.10% | 0.07% |
S&P Small-Cap 600 Growth ETF (ETF Shares) | 0.15% | 0.10% |
S&P SmallCap 600 Index Fund (Institutional Shares) | 0.08% | 0.03% |
S&P Small-Cap 600 Value ETF (ETF Shares) | 0.15% | 0.10% |
S&P SmallCap 600 Value Index Fund (Institutional Shares) | 0.08% | 0.03% |
Short-Term Bond ETF (ETF Shares) | 0.04% | 0.03% |
Short-Term Bond Index Fund (Institutional Plus Shares) | 0.04% | 0.03% |
Short-Term Bond Index Fund (Institutional Shares) | 0.05% | 0.04% |
Short-Term Bond Index Fund (Admiral Shares) | 0.07% | 0.06% |
Short-Term Corporate Bond ETF (ETF Shares) | 0.04% | 0.03% |
Short-Term Corporate Bond Index Fund (Institutional Shares) | 0.05% | 0.04% |
Short-Term Corporate Bond Index Fund (Admiral Shares) | 0.07% | 0.06% |
Short-Term Inflation-Protected Securities ETF (ETF Shares) | 0.04% | 0.03% |
Short-Term Inflation-Protected Securities Index Fund (Institutional Shares) | 0.04% | 0.03% |
Short-Term Investment-Grade Fund (Admiral Shares) | 0.10% | 0.09% |
Short-Term Tax-Exempt Bond ETF (ETF Shares) | 0.07% | 0.06% |
Short-Term Treasury ETF (ETF Shares) | 0.04% | 0.03% |
Short-Term Treasury Index Fund (Admiral Shares) | 0.07% | 0.06% |
Short-Term Treasury Index Fund (Institutional Shares) | 0.05% | 0.04% |
Strategic Small-Cap Equity Fund (Investor Shares) | 0.26% | 0.21% |
Tax-Exempt Bond ETF (ETF Shares) | 0.05% | 0.03% |
Tax-Exempt Bond Index Fund (Admiral Shares) | 0.09% | 0.07% |
Total Bond Market Index Fund (Admiral Shares) | 0.05% | 0.04% |
Total Bond Market Index Fund (Institutional Plus Shares) | 0.03% | 0.02% |
Total Bond Market Index Fund (Institutional Shares) | 0.035% | 0.025% |
Total Corporate Bond ETF (ETF Shares) | 0.04% | 0.03% |
Total International Bond Index Fund (Admiral Shares) | 0.11% | 0.10% |
Total International Bond Index Fund (Institutional Shares) | 0.07% | 0.06% |
Total International Stock ETF (ETF Shares) | 0.08% | 0.05% |
Total International Stock Index Fund (Admiral Shares) | 0.12% | 0.09% |
Total International Stock Index Fund (Institutional Plus Shares) | 0.08% | 0.05% |
Total International Stock Index Fund (Institutional Shares) | 0.09% | 0.06% |
Total World Stock ETF (ETF Shares) | 0.07% | 0.06% |
Total World Stock Index Fund (Admiral Shares) | 0.10% | 0.09% |
Total World Stock Index Fund (Institutional Shares) | 0.08% | 0.07% |
Treasury Money Market Fund (Investor Shares) | 0.09% | 0.07% |
Ultra-Short-Term Bond Fund (Admiral Shares) | 0.10% | 0.09% |
Utilities ETF (ETF Shares) | 0.10% | 0.09% |
Utilities Index Fund (Admiral Shares) | 0.10% | 0.09% |
Variable Insurance Fund – Conservative Allocation Portfolio | 0.13% | 0.12% |
Variable Insurance Fund – Moderate Allocation Portfolio | 0.13% | 0.12% |
Variable Insurance Fund – Total International Stock Market Index Portfolio | 0.11% | 0.08% |
Windsor™ Fund (Admiral Shares) | 0.32% | 0.26% |
Windsor II Fund (Admiral Shares) | 0.26% | 0.23% |
Windsor II Fund (Investor Shares) | 0.34% | 0.32% |