Reviewed by Gotrade Internal Analyst
Gotrade News - Vanguard has just announced another round of fee cuts for 53 mutual funds and ETFs, effective this Monday (Feb 2). This strategic move is projected to put an estimated $250 million back into investors' pockets by the end of 2026.
This marks the second major reduction in the last twelve months, reinforcing Vanguard's aggressive stance on keeping costs rock-bottom. For retail investors, this means keeping more of your returns over the long haul without having to lift a finger.
Key Takeaways:
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Vanguard slashed expense ratios on 84 share classes covering 53 mutual funds and ETFs.
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The move is expected to save investors around $250 million through the end of 2026.
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These consistent cuts pile pressure on competitors to lower their prices, benefiting the entire market.
This latest round of cuts affects about 10% of Vanguard's massive asset base. According to Morning Star, this aggressive pricing strategy is a continuation of the efficiency drive that began last year, further solidifying their market dominance.
While the percentage drop might look marginal at a glance, the compound effect is huge for long-term holders. The median expense ratio for this group dropped from 0.06% to an even more competitive figure, proving that small percentages add up to serious money over time.
Impact on Your Portfolio
Vanguard is sending a clear signal that it prioritizes client returns over its own potential revenue. This "at-cost" philosophy is exactly why investors parked hundreds of billions of new money into their funds throughout 2025.
Popular ETFs like VIG, VWO, and VYM are included in this fee adjustment. If you already own these assets, you'll automatically benefit from the lower expenses starting now.
Here is the complete list of fee changes. Check if your holdings are on the list:
| Share Class | Ticker | Broad Group | Old ER (%) | New ER (%) | Reduction |
|---|---|---|---|---|---|
| Vanguard 0-3 Month Treasury Bill ETF | VBIL | Fixed Income | 0.07 | 0.060 | -0.010 |
| Vanguard Balanced Index I | VBAIX | Allocation | 0.06 | 0.040 | -0.020 |
| Vanguard California Tax-Exempt Bond ETF | VTEC | Fixed Income | 0.08 | 0.060 | -0.020 |
| Vanguard Dividend Appreciation ETF | VIG | Equity | 0.05 | 0.040 | -0.010 |
| Vanguard Emerging Mkts Govt Bd Idx Instl | VGIVX | Fixed Income | 0.13 | 0.080 | -0.050 |
| Vanguard Emerging Mkts Stock Idx Instl | VEMIX | Equity | 0.09 | 0.060 | -0.030 |
| Vanguard Emerging Mkts Stock Idx InsPlus | VEMRX | Equity | 0.07 | 0.050 | -0.020 |
| Vanguard FTSE Emerging Markets ETF | VWO | Equity | 0.07 | 0.060 | -0.010 |
| Vanguard Extended Market Index InstlPlus | VEMPX | Equity | 0.04 | 0.035 | -0.005 |
| Vanguard Extended Market Index Instl | VIEIX | Equity | 0.05 | 0.040 | -0.010 |
| Vanguard FTSE All-Wld ex-US SmCp ETF | VSS | Equity | 0.08 | 0.060 | -0.020 |
| Vanguard FTSE All-Wld ex-US SmCp Idx Ins | VFSNX | Equity | 0.10 | 0.080 | -0.020 |
| Vanguard FTSE Social Index Admiral | VFTAX | Equity | 0.13 | 0.110 | -0.020 |
| Vanguard FTSE Social Index I | VFTNX | Equity | 0.07 | 0.030 | -0.040 |
| Vanguard Growth ETF | VUG | Equity | 0.04 | 0.030 | -0.010 |
| Vanguard Growth Index Institutional | VIGIX | Equity | 0.04 | 0.030 | -0.010 |
| Vanguard High Dividend Yield ETF | VYM | Equity | 0.06 | 0.040 | -0.020 |
| Vanguard Interm-Term Bond Index I | VBIMX | Fixed Income | 0.04 | 0.030 | -0.010 |
| Vanguard Interm-Term Bond Index Ins Plus | VBIUX | Fixed Income | 0.03 | 0.020 | -0.010 |
| Vanguard Interm-Term Corp Bd Idx Instl | VICBX | Fixed Income | 0.04 | 0.030 | -0.010 |
| Vanguard Intmdt-Term Trs Idx Instl | VIIGX | Fixed Income | 0.04 | 0.030 | -0.010 |
| Vanguard Intl Div Apprec ETF | VIGI | Equity | 0.10 | 0.070 | -0.030 |
| Vanguard Intl Hi Div Yld Idx ETF | VYMI | Equity | 0.17 | 0.070 | -0.100 |
| Vanguard Intl Hi Div Yld Adm | VIHAX | Equity | 0.17 | 0.160 | -0.010 |
| Vanguard Large-Cap ETF | VV | Equity | 0.04 | 0.030 | -0.010 |
| Vanguard Large Cap Index Institutional | VLISX | Equity | 0.04 | 0.030 | -0.010 |
| Vanguard LifeStrategy Cnsrv Gr Inv | VSCGX | Allocation | 0.12 | 0.100 | -0.020 |
| Vanguard LifeStrategy Growth Inv | VASGX | Allocation | 0.14 | 0.100 | -0.040 |
| Vanguard LifeStrategy Income Inv | VASIX | Allocation | 0.11 | 0.100 | -0.010 |
| Vanguard LifeStrategy Mod Gr Inv Shrs | VSMGX | Allocation | 0.13 | 0.100 | -0.030 |
| Vanguard Long-Term Bond Index Instl | VBLLX | Fixed Income | 0.04 | 0.030 | -0.010 |
| Vanguard Long-Term Bond Index Instl Plus | VBLIX | Fixed Income | 0.03 | 0.020 | -0.010 |
| Vanguard Long-Term Corporate Bd Idx Ins | VLCIX | Fixed Income | 0.04 | 0.030 | -0.010 |
| Vanguard Long-Term Treasury Idx Instl | VLGIX | Fixed Income | 0.04 | 0.030 | -0.010 |
| Vanguard Mega Cap ETF | MGC | Equity | 0.07 | 0.050 | -0.020 |
| Vanguard Mega Cap Growth ETF | MGK | Equity | 0.07 | 0.050 | -0.020 |
| Vanguard Mega Cap Growth Index Instl | VMGAX | Equity | 0.06 | 0.050 | -0.010 |
| Vanguard Mega Cap Index Institutional | VMCTX | Equity | 0.06 | 0.050 | -0.010 |
| Vanguard Mega Cap Value ETF | MGV | Equity | 0.07 | 0.050 | -0.020 |
| Vanguard Mega Cap Value Index Instl | VMVLX | Equity | 0.06 | 0.050 | -0.010 |
| Vanguard Mid-Cap ETF | VO | Equity | 0.04 | 0.030 | -0.010 |
| Vanguard Mid-Cap Growth ETF | VOT | Equity | 0.07 | 0.050 | -0.020 |
| Vanguard Mid Cap Index Institutional | VMCIX | Equity | 0.04 | 0.030 | -0.010 |
| Vanguard Mid Cap Index InstitutionalPlus | VMCPX | Equity | 0.03 | 0.020 | -0.010 |
| Vanguard Mid-Cap Value ETF | VOE | Equity | 0.07 | 0.050 | -0.020 |
| Vanguard Mortgage-Backed Secs Idx Adm | VMBSX | Fixed Income | 0.06 | 0.040 | -0.020 |
| Vanguard Mortgage-Backed Secs Idx Instl | VMBIX | Fixed Income | 0.04 | 0.020 | -0.020 |
| Vanguard Russell 1000 ETF | VONE | Equity | 0.07 | 0.060 | -0.010 |
| Vanguard Russell 1000 Growth ETF | VONG | Equity | 0.07 | 0.060 | -0.010 |
| Vanguard Russell 1000 Growth Index I | VRGWX | Equity | 0.06 | 0.050 | -0.010 |
| Vanguard Russell 1000 Index I | VRNIX | Equity | 0.06 | 0.050 | -0.010 |
| Vanguard Russell 1000 Value ETF | VONV | Equity | 0.07 | 0.060 | -0.010 |
| Vanguard Russell 1000 Value Index I | VRVIX | Equity | 0.06 | 0.050 | -0.010 |
| Vanguard Russell 2000 ETF | VTWO | Equity | 0.07 | 0.060 | -0.010 |
| Vanguard Russell 2000 Growth ETF | VTWG | Equity | 0.10 | 0.060 | -0.040 |
| Vanguard Russell 2000 Growth Index I | VRTGX | Equity | 0.07 | 0.050 | -0.020 |
| Vanguard Russell 2000 Index I | VRTIX | Equity | 0.07 | 0.050 | -0.020 |
| Vanguard Russell 2000 Value ETF | VTWV | Equity | 0.10 | 0.060 | -0.040 |
| Vanguard Russell 2000 Value Index I | VRTVX | Equity | 0.07 | 0.050 | -0.020 |
| Vanguard Russell 3000 ETF | VTHR | Equity | 0.07 | 0.060 | -0.010 |
| Vanguard Russell 3000 Index I | VRTTX | Equity | 0.07 | 0.050 | -0.020 |
| Vanguard Short-Term Bond Idx I | VBITX | Fixed Income | 0.04 | 0.030 | -0.010 |
| Vanguard Short-Term Bond Idx InstlPls | VBIPX | Fixed Income | 0.03 | 0.020 | -0.010 |
| Vanguard Short-Term Corp Bd Idx I | VSTBX | Fixed Income | 0.04 | 0.030 | -0.010 |
| Vanguard Shrt-Term Infl-Prot Sec Idx Ins | VTSPX | Fixed Income | 0.03 | 0.020 | -0.010 |
| Vanguard Short-Term Tax-Exmpt Bd ETF | VTES | Fixed Income | 0.06 | 0.050 | -0.010 |
| Vanguard Short-Term Treasury Idx Instl | VSBIX | Fixed Income | 0.04 | 0.030 | -0.010 |
| Vanguard Small-Cap Growth ETF | VBK | Equity | 0.07 | 0.050 | -0.020 |
| Vanguard Small Cap Growth Index I | VSGIX | Equity | 0.06 | 0.050 | -0.010 |
| Vanguard Small Cap Index I | VSCIX | Equity | 0.04 | 0.030 | -0.010 |
| Vanguard Small Cap Index InstlPlus | VSCPX | Equity | 0.03 | 0.020 | -0.010 |
| Vanguard Small-Cap ETF | VB | Equity | 0.05 | 0.030 | -0.020 |
| Vanguard Small-Cap Value ETF | VBR | Equity | 0.07 | 0.050 | -0.020 |
| Vanguard Small Cap Value Index I | VSIIX | Equity | 0.06 | 0.050 | -0.010 |
| Vanguard Tax-Managed Balanced Adm | VTMFX | Allocation | 0.09 | 0.050 | -0.040 |
| Vanguard Tax-Managed Capital App Adm | VTCLX | Equity | 0.09 | 0.050 | -0.040 |
| Vanguard Tax-Managed Capital App I | VTCIX | Equity | 0.06 | 0.030 | -0.030 |
| Vanguard Tax-Managed Small Cap Adm | VTMSX | Equity | 0.09 | 0.050 | -0.040 |
| Vanguard Tax-Managed Small Cap I | VTSIX | Equity | 0.06 | 0.030 | -0.030 |
| Vanguard Total Intl Bd II Idx Investor | VTIIX | Fixed Income | 0.13 | 0.110 | -0.020 |
| Vanguard Total Intl Bd Idx Institutional | VTIFX | Fixed Income | 0.06 | 0.030 | -0.030 |
| Vanguard Total Stock Mkt Idx Inv | VTSMX | Equity | 0.14 | 0.060 | -0.080 |
| Vanguard Value ETF | VTV | Equity | 0.04 | 0.030 | -0.010 |
| Vanguard Value Index I | VIVIX | Equity | 0.04 | 0.030 | -0.010 |
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Reference:
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Morning Star, Vanguard Cuts Fees on 53 Mutual Funds and ETFs for 2026. Accessed on February 3, 2026
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Featured Image: The Daily Upside
