Building on this momentum, our 0.06% average expense ratio places our full lineup among the lowest-cost funds in the industry.2
“Vanguard is investor-owned3—we have no outside stockholders or private owners profiting from our clients. These fee reductions—set to deliver more than half a billion dollars in savings across 2025 and 2026—are a clear expression of our purpose and commitment to our clients as owners,” said Salim Ramji, Vanguard’s chief executive officer. “When investors keep more of what they earn, the benefits compound over the long term, helping our clients achieve their most important financial goals.”
Discipline and strong performance make it happen
For more than 50 years, Vanguard has set the standard for driving down the cost of investing, lowering expense ratios more than 2,000 times since our founding. The 2026 reductions across 53 funds continue that tradition and demonstrate how disciplined cost management paired with strong performance creates broad, lasting value for investors.
“We know that costs and risk are two of the most important considerations for plan sponsors in their capacity as fiduciaries,” said Lauren Valente, head of Vanguard Workplace Solutions. “Our fee reductions put plan sponsors in a strong position to meet their fiduciary responsibilities. And lowering costs is a key part of how we support better retirement readiness and strengthen plan competitiveness.”
Overall, 75% of Vanguard funds are in the lowest-cost deciles of their peer groups, and 100% of our active fixed income funds are priced in the lowest-cost decile of their Morningstar category.4
Looking ahead
Sources:
1 Savings due to the reduction in expense ratios were calculated on a share-class basis for each fund for which there is a Vanguard-initiated reduction. To estimate 2026 savings, 2025 year-end AUM was multiplied by the 2026 reduced expense ratio. To estimate 2025 savings, each fund’s 2024 year-end AUM was multiplied by its 2025 reduced expense ratio. The total estimated savings for investors holding these funds in 2024 and 2025 is the sum of these two amounts.
2 Asset-weighted average U.S. fund expenses, as a share of 2025 average net U.S. assets. Figures as of December 31, 2025.
3 Vanguard is owned by its funds, which are owned by Vanguard's fund shareholder clients.
4 All competitor fund data sourced from Morningstar Direct as of November 2025. The combination of Morningstar Category, Investment Type, and Management Style define Vanguard’s “category.” Lowest-decile expense ratios are calculated excluding Vanguard funds. Vanguard’s updated expense ratios (effective February 1, 2026) were compared with the lowest-decile expense ratios in each category. Summing all mutual fund assets that were less than or equal to the lowest-decile expense ratio and dividing by total mutual fund assets resulted in 75% of Vanguard mutual fund assets and 100% of Vanguard active fixed income funds in the lowest-cost decile.
Notes
All investing is subject to risk, including the possible loss of the money you invest.
For more information about Vanguard funds, visit workplace.vanguard.com or call 800-523-1036 to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.
Vanguard is reducing expense ratios for certain share classes of some funds. There is no guarantee that any individual investor will save money due to the reductions in fund expense ratios. Not all fund share classes will have a reduced expense ratio, and, therefore, not all investors will experience the estimated savings. Investors that purchase the relevant funds after the expense ratios have been reduced will not experience savings. Savings means future money not spent on expense ratios and does not entail a rebate or deposit of any sort. Savings figures are estimates and should not be relied upon. Savings is based on data as of December 31, 2025; if other data is used, savings may differ. Estimated savings accrue to existing investors holding relevant share classes for 2025 and 2026. For illustrative purposes only. Past performance is not indicative of future results.