Vanguard plans to reduce expense ratios on 84 mutual fund and exchange-traded share classes, resulting in an estimated $250m in fee reductions for investors in 2026. With recent changes, cumulative savings for investors over two years total nearly $600m, marking the largest cost reduction in the firm’s history.

The average expense ratio for Vanguard’s product range now stands at 0.06%. The company highlighted that a significant proportion of its funds have outperformed their peer group averages over the past decade, with 84% of mutual funds and 88% of active fixed income funds meeting this criterion.

Fee reductions extend to various Vanguard products, including US equity 9-box funds like Growth ETF (VUG) and Value ETF (VTV), large-, mid-, and small-cap growth, value, and blend funds, as well as ETFs such as FTSE Emerging Markets (VWO) and dividend-oriented options like Dividend Appreciation (VIG) and High Dividend Yield (VYM).

Vanguard CEO Salim Ramji emphasized the investor-owned structure of the company, highlighting the purpose and commitment to clients through fee reductions that are expected to deliver over half a billion dollars in savings for clients in 2025 and 2026.

In other news, Vanguard Latin America head Juan Hernandez revealed plans to triple the size of the company’s Miami team from five to 15 over the next five years. Vanguard is also considering expanding its offshore services in US locations like California and Houston, as reported by Bloomberg.

Read more at Yahoo Finance: Vanguard cuts fees on 53 funds for 2026