See the difference low-cost mutual funds can make
The less you pay for your mutual funds, the more you keep in your pocket—it's that simple.
Vanguard funds offer an enviable cost advantage
On average, other companies' mutual funds are 5 times more expensive than ours.*
You don't get a bill explaining how much of your savings went toward paying mutual fund expenses, because those costs are paid directly out of each fund's returns.
Vanguard was built differently to make sure we stay focused on keeping your costs low. You only pay what it costs us to run the funds—period.
See how much you can save
Use this easy tool to compare the impact of Vanguard's low-cost approach with the industry average.
This hypothetical illustration assumes an annual 6% return for both examples. This illustration does not represent any particular investment nor does it account for inflation. There may be other material differences between investment products that must be considered prior to investing.
Sources: Vanguard and Lipper, a Thomson Reuters Company, as of December 31, 2012.
Other ways Vanguard keeps your costs low
There are no trading commissions when you buy and sell Vanguard low-cost mutual funds or exchange-traded funds (ETFs).**
If you decide to invest in individual stocks, bonds, or certificates of deposit (CDs) or in other companies' mutual funds or ETFs, you may pay a brokerage commission—but we keep those low too.
Plus, for as long as you keep investing at Vanguard, you'll pay:
- No account services fees.†
- No front-end or back-end sales loads.
- No extra distribution or marketing fees (known as "12b-1" fees).
*Vanguard average expense ratio: 0.19%. Industry average expense ratio: 1.11%. Sources: Vanguard and Lipper, a Thomson Reuters Company, as of December 31, 2012.
**Trading limits, fund expenses, and minimum investments may apply. See the Vanguard Brokerage Services commission and fee schedules for full details.
†There are no fees if you sign up to receive statements and other important documents electronically or if you're a Voyager, Voyager Select, Flagship, or Flagship Select client. Otherwise, a $20 fee applies to each fund in an account with a balance of less than $10,000.
You must buy and sell Vanguard ETF Shares through a broker like Vanguard Brokerage Services (we offer them commission-free) or through another broker (you may incur commissions). Vanguard ETF Shares are not redeemable directly with the issuing fund other than in creation unit aggregations. Like stocks, ETFs are subject to market volatility. When buying or selling an ETF, you'll pay or receive the current market price, which may be more or less than net asset value.
All investing is subject to risk, including the possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss.
For the 10-year period ended December 31, 2013, 10 of 10 Vanguard money market funds, 49 of 51 Vanguard bond funds, 17 of 18 Vanguard balanced funds, and 81 of 91 Vanguard stock funds—for a total of 157 of 170 Vanguard funds—outperformed their Lipper peer-group averages. Only funds with a minimum 10-year history were included in the comparison. Source: Lipper, a Thomson Reuters Company. The competitive performance data shown represent past performance, which is not a guarantee of future results. See the most recent performance of our funds
Vanguard Brokerage Services is a division of Vanguard Marketing Corporation, member FINRA.
Vanguard provides services to the Vanguard funds and ETFs at cost.
Vanguard is client-owned. As a client-owner, you own the funds that own Vanguard.
A sales fee that's charged when you buy fund shares. Fees can be as high as 8.5% of your purchase amount—which would reduce a $100,000 investment to $91,500.
A sales fee that's charged when you sell fund shares. Fees can start as high as 5% to 7% but typically decline each year you're invested in the fund, ultimately disappearing after 5 to 10 years.
This may also be referred to as a "contingent deferred sales charge."
Here's a hypothetical cost-savings illustration. At Vanguard, you could save $7,770 over 10 years assuming an initial investment of $50,000 earning 6% each year. Savings are based on Vanguard's average expense ratio of 0.19%, which totals $1,687 in this scenario, compared with the industry average expense ratio of 1.11%, or $9,457 in this scenario.