Everyone likes a sale. So what’s better than news from Vanguard that some of our favourite cheap tracker funds and ETFs will now cost us even fewer pennies?
As detailed below, the passive investing behemoth has shaved a few more basis points off a range of its funds and ETFs, including the ultra-convenient LifeStrategy funds.
These lower ongoing charges are effective from 1 September, and apply whether you’re a new customer or an existing investor in one of these Vanguard products.
And that’s always great news. Fewer pennies to Vanguard means more money for you in retirement!
In the Vanguard
Now we’re not normally ones for reporting on the tawdry matters of day-to-day mercantile machinations here on Monevator.
Frankly, we haven’t got the resources to send The Accumulator scuttling about the eateries and watering holes of The City to fish for topical tidbits – and The Accumulator explicitly stated that he was only interested in scuttling about The City’s streets if it definitely did involve stopping by its eateries and watering holes. Frequently.
But hey, this is Vanguard, a company we salute so often we’ve been accused of being a front for its nefarious plans to make investing cheaper. (We’re not – but we’re very open to the odd non-editorially compromising advertising campaign, if any Vanguard marketing managers happen to be reading…)
When Vanguard – the trendsetter in cheapness – cuts prices, it matters.
The cost of passive investing in the UK is already low, but the ongoing price cuts prove that – just like in the US before us – the price war is not yet over.
What’s more, The Accumulator is still on his holidays and I’m struggling to finish a giant post about bookkeeping. And it’s summer. And Lower Charges From Vanguard is better than a dead donkey, right?
Now let’s just hope some of those pesky platform fees start to fall, too.
The following tables detail Vanguard’s new lower ongoing charges in full.
UK and Irish Domiciled Index Mutual Fund Range
| Fund Name |
Former Ongoing Charge |
New Ongoing Charge |
| Vanguard FTSE U.K. Equity Index Fund |
0.15% |
0.08% |
| Vanguard FTSE U.K. Equity Income Index Fund |
0.25% |
0.22% |
| Vanguard FTSE U.K. All Share Index Unit Trust |
0.15% |
0.08% |
| Vanguard FTSE Developed World ex-U.K. Equity Index Fund |
0.30% |
0.15% |
| Vanguard FTSE Developed Europe ex-U.K. Equity Index Fund |
0.25% |
0.12% |
| Vanguard U.S. Equity Fund |
0.20% |
0.10% |
| Vanguard SRI Global Stock Fund |
0.40% |
0.35% |
| Vanguard Global Small-Cap Index Fund |
0.40% |
0.38% |
| Vanguard SRI European Stock Fund |
0.35% |
0.30% |
| Vanguard Emerging Markets Stock Index Fund |
0.40% |
0.27% |
| Vanguard Japan Stock Index Fund |
0.30% |
0.23% |
| Vanguard Pacific Ex-Japan Stock Index Fund |
0.30% |
0.23% |
| Vanguard U.K. Investment Grade Bond Index Fund |
0.20% |
0.15% |
| Vanguard U.K. Short Term Inv. Grade Bond Index Fund |
0.20% |
0.15% |
| Vanguard Global Bond Index Fund |
0.20% |
0.15% |
| Vanguard Global Short-Term Bond Index Fund |
0.20% |
0.15% |
Exchange Traded Fund Range
| Fund Name |
Existing Ongoing Charge |
New Ongoing Charge |
| Vanguard S&P 500 UCITS ETF |
0.09% |
0.07% |
| Vanguard FTSE 100 UCITS ETF |
0.10% |
0.09% |
| Vanguard FTSE Developed Europe UCITS ETF |
0.15% |
0.12% |
| Vanguard FTSE Emerging Markets UCITS ETF |
0.29% |
0.25% |
LifeStrategy Fund Range
| Fund Name |
Existing Ongoing Charge |
New Ongoing Charge |
| Vanguard LifeStrategy 20 % Equity Fund |
0.29% |
0.24% |
| Vanguard LifeStrategy 40 % Equity Fund |
0.29% |
0.24% |
| Vanguard LifeStrategy 60 % Equity Fund |
0.29% |
0.24% |
| Vanguard LifeStrategy 80 % Equity Fund |
0.29% |
0.24% |
| Vanguard LifeStrategy 100 % Equity Fund |
0.29% |
0.24% |
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