With reduced fees, these two Vanguard ETFs look even better
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Key points Vanguard just lowered the fees on 168 share classes of its funds and ETFs. It was the largest fee reduction in the companyʻs history. Two excellent Vanguard ETFs were among those that saw their fees reduced. Vanguard just implemented its largest fee cut ever. The Vanguard Group, the second largest manager of exchange-traded funds (ETFs), is a pioneer in the asset management business. It was the first company to create an index mutual fund when founder John Bogle did it in 1975. He was also a champion of low fees on mutual funds, and Vanguard has been known for its low fund fees ever since. “In investing, realize that you get what you don’t pay for,” Bogle, who died in 2019, once said. “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.” Vanguard has heeded that advice for 50 years as its low-fee strategy has allowed Vanguard to become one of the largest money managers in the world. Last week, it pared the fees even closer to the bone. The firm launched its largest fee reduction ever, reducing the expense ratios on 168 share classes of its funds, saving investors a total of $350 million this year alone. But beyond the savings, when expense ratios are lower, investment returns are generally higher, as fees come out of returns. So, some of the already lowest fees in the business just got even lower. Here are two Vanguard ETFs in particular that look even better right now. Vanguard information technology ETF With some $100 billion in assets under management, the Vanguard Information Technology ETF (NYSEARCA:VGT) is the second largest…
Filed under: News - @ February 13, 2025 6:22 am