Dec 28 Vanguard Group, the largest U.S. mutual
fund manager, reduced fees across dozens of its index-tracking
stock and bond funds, following similar moves by competitors.
The fee reductions range from five-hundredths to
one-hundredth of a percentage point per year. With many of the
funds already charging low fees of less than 0.20 percent Of
assets, some of the reductions were the equivalent of a 20
percent fee cut.
Intense competition among managers of index mutual and
exchange-traded funds has led to sharp price cutting across the
industry over the past few months. BlackRock, the
largest ETF manager, and brokerage firm Charles Schwab
both announced price cuts earlier this year.
At Vanguard's line of broad equity sector funds, such as the
firm's Consumer Discretionary ETF and Health Care ETF
, fees declined to 0.14 percent from 0.19 percent.
Vanguard, based in Valley Forge, Pennsylvania, posted a full
list of the fee cuts at
Vanguard raised fees slightly on three actively managed
equity mutual funds, including on both share classes of the
$17.6 billion Vanguard International Growth Fund. Fees on the
"Investor" share class rose to 0.49 percentage point
from 0.47 while fees on the fund's "Admiral" class
rose to 0.36 point from 0.34.