Changes to save investors $3.5m annually.
Vanguard has reduced fees across seven of its fixed income exchange traded funds (ETFs) for European investors, as part of its efforts to make fixed income investing more accessible.
The asset management giant estimates the fee cuts, which are effective from 1 July, will save investors approximately $3.5m each year.
The changes will impact hedged and unhedged ETFs including Vanguard Global Aggregate Bond UCITS ETF Hedged, Vanguard U.K. Gilt UCITS ETF and Vanguard EUR Corporate Bond UCITS ETF NAV GBP.
Fee changes are illustrated in the table below.
|
Product |
Share class |
Previous OCF |
New OCF |
|
Vanguard Global Aggregate Bond UCITS ETF |
Hedged |
0.10% |
0.08% |
|
Vanguard USD Treasury Bond UCITS ETF |
Unhedged |
0.07% |
0.05% |
|
|
Hedged |
0.12% |
0.10% |
|
Vanguard U.K. Gilt UCITS ETF |
Unhedged |
0.07% |
0.05% |
|
|
Hedged |
0.12% |
0.10% |
|
Vanguard USD Emerging Markets Government Bond UCITS ETF |
Unhedged |
0.25% |
0.23% |
|
|
Hedged |
0.30% |
0.28% |
|
Vanguard EUR Corporate Bond UCITS ETF |
Unhedged |
0.09% |
0.07% |
|
|
Hedged |
0.14% |
0.12% |
|
Vanguard ESG EUR Corporate Bond UCITS ETF |
Unhedged |
0.11% |
0.09% |
|
|
Hedged |
0.16% |
0.14% |
|
Vanguard USD Corporate Bond UCITS ETF |
Unhedged |
0.09% |
0.07% |
|
|
Hedged |
0.14% |
0.12% |
Source: Vanguard, 23 June 2025
The average asset-weighted expense ratio across Vanguard’s fixed income index and actively managed fund range in Europe is now 0.11%.
John Cleborne, head of Vanguard for Europe, said: “The bond market is now twice the size of the equity market, yet remains opaque and expensive. Investors deserve better. At Vanguard, we believe that in investing, you get what you don’t pay for.”
As of 31 May 2025, Vanguard managed $10.5trn globally, including $2.5trn in fixed income assets.
