Share classes of Vanguard mutual funds
Understand the similarities and differences among our 3 mutual fund share classes, including how each helps you keep your costs under control.
What are share classes?
Mutual funds are frequently offered in different share classes. The funds' objectives, management, and underlying investments are identical across all classes. But each class has different expense ratios and minimum initial investment requirements.
What share classes does Vanguard offer?
Investor Shares
$1,000 for Vanguard Target Retirement Funds and Vanguard STAR® Fund.
$3,000 for most actively managed funds.
Most Vanguard index funds no longer offer Investor Shares to new investors. For the few that do, most have $3,000 minimums.
Range
0.09% to 1.80%**
Average
0.27%
Admiral™ Shares
$3,000 for most index funds.
$50,000 for most actively managed funds.
$100,000 for certain sector-specific index funds.
Range
0.04% to 0.45%
Average
0.14%
Institutional Shares
$5 million.†
Range
0.01% to 1.74%**
Average
0.08%
Are you eligible to convert to Admiral Shares?
You can now own lower-cost Admiral Shares for 43 of our index mutual funds for a minimum of just $3,000 each.
DO YOU QUALIFY FOR A LOWER-COST SHARE CLASS?
Do you already own Investor Shares and think you qualify for lower-cost Admiral Shares?
UNDERSTAND THE IMPORTANCE OF COSTS
REFERENCE CONTENT
Minimum initial investment
The minimum amount of money you need to begin investing in a specific mutual fund.
Exchange-traded funds (ETFs) have no minimum initial investment requirement beyond the price of 1 share.
Expense ratio
A mutual fund's or exchange-traded fund's (ETF's) annual operating expenses, expressed as a percentage of the fund's average net assets. It's calculated annually and removed from the fund's earnings before they're distributed to investors, directly reducing investors' returns.
An expense ratio includes management, administrative, marketing, and distribution fees. It doesn't include loads or purchase or redemption fees.