Investing February 2, 2026

Vanguard Cuts Fees on 52 Retirement Plan Funds

Expense ratios were lowered on funds that include 84 underlying share classes overall.

Reported by

Vanguard announced on Monday that it lowered expense ratios on 52 funds represented in retirement plans, part of a cut on funds comprising 84 total share classes: 28 exchange-traded funds and 56 mutual fund classes.

Fee prices were lowered on February 1 by an overall average of 27%, amounting to an expected total savings of nearly $250 million this year. Over the past two years, the firm has reduced a total of $600 million in fees.

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“When investors keep more of what they earn, the benefits compound over the long term, helping our clients achieve their most important financial goals,” said Vanguard CEO Salim Ramji in a statement.

Vanguard’s product lineup across all asset classes now has an average expense ratio of 0.06%. The highest fee reduction on funds used in retirement plans was 8 basis points, which applied to the Total Stock Market Index Fund (VTSMX). Second-highest were the FTSE Social Index Fund’s institutional share class (VFTAX), LifeStrategy Growth Fund (VASGX), Tax-Managed Balanced Fund (VTMFX), Tax-Managed Capital Appreciation Fund (VTCLX) and Tax-Managed Small-Cap Fund (VTSIX), with reductions of 4 bps each.

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