Vanguard announces expense ratio decline
The expense ratio for the Vanguard Investments US Total Market Shares Index ETF (VTS) has declined from 0.07 per cent per annum to 0.06 per cent per annum.
Greater efficiencies of scale have led to savings which Vanguard says will be passed on to investors.
"Maintaining lower costs for investors is part of our DNA at Vanguard, with our low cost philosophy driven from the mutual structure of our parent company," said Robyn Laidlaw, head of Vanguard's product management and development in Australia.
VTS is primarily listed on an overseas exchange and has been cross-listed to the Australian Securities Exchange since 2009. The exchange-traded fund (ETF) aims to track the performance of the US stock market to the benchmark MSCI US Broad Market Index.
Vanguard said actual savings may be higher or lower than costs published as management costs are expressed as a percentage of the average net assets of ETFs.
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