On February 3, Vanguard announced its largest cost reduction ever, aiming to save investors over $350 million this year by cutting the expense ratios of 87 funds between one and six basis points from February 1. The fee reduction applies to various fund categories, including bond mutual funds, ETFs, U.S. and international equities, and money market funds.

This move marks the most substantial annual expense ratio reduction in Vanguard's almost 50-year history. Vanguard's Chief Investment Officer, Greg Davis, stated, Lower fees mean fund investors can keep more of their returns and a competitive edge for our funds.

Vanguard CEO Salim Ramji, who outlined plans last year, emphasized the compounding benefit of cost savings for investors over time. Davis highlighted the significant role of bonds in investors' portfolios.

Founded by Jack Bogle in 1975, Vanguard manages around $10.4 trillion in assets as of November 30, 2024. As a leading provider of low-cost ETFs alongside BlackRock, Vanguard offers a total of 428 funds globally, with 212 in the U.S. The company noted it has reduced investing costs over 2,000 times since its inception.