4 min Read
24 Oct 2019

Written by Lauren

Vanguard lowers fees by a third on 36 funds for UK investors

Vanguard logo

Vanguard has pledged a continual commitment to save UK investors money by slashing its fees on 36 funds. This means that Vanguard's average fund ongoing charge figure is now only 0.2% compared to 0.34% 10 years ago.

Who is Vanguard?

Vanguard is an American based investment firm and is one of the largest investment companies with over 30 million investors worldwide. Vanguard was established in 1975 and became popular due to its offer of low-cost index-tracking funds. It has since added a number of active funds to its fund range.

Historically UK investors could only invest in Vanguard funds via third party platforms or brokers, such as Interactive Investor, but since launching its own investment platform, Vanguard Investor, investors can now invest in Vanguard directly.

If you invest via Vanguard Investor, Vanguard charges an annual account fee (in addition to any fund charges) of 0.15% on investments up to £250,000. There is no account fee for investments above £250,000 which means there is a maximum account fee of £375.

This makes it among one of the cheapest ways to invest in the UK. However as pointed out in our Interactive Investor review, for investors with a sizeable portfolio it can be cheaper to invest in Vanguard funds via Interactive Investor due to its fixed fee charging structure.

To find out more about Vanguard funds and Vanguard Investor, read our full independent Vanguard Investor Review.

What are Vanguard's new fund charges?

Costs have a significant impact on long term investment returns so Vanguard lowering its fund management fees is good news for investors and it should also encourage other investment houses to cut their fund charges in time.

Below is a summary of Vanguard's new fund charges compared to what they were prior to the reduction.

A list of Vanguard's old fund charges vs its new reduced charges

Vanguard ETF price changes

 

Vanguard ETFs  New Ongoing Charge Figure (OCF) Old Ongoing Charge Figure (OCF)
FTSE All-World UCITS ETF 0.22% 0.25%
FTSE Developed Asia Pacific ex Japan UCITS ETF 0.15% 0.22%
FTSE Developed Europe ex UK UCITS ETF 0.10% 0.12%
FTSE Developed Europe UCITS ETF 0.10% 0.12%
FTSE Developed World UCITS ETF 0.12% 0.18%
FTSE Emerging Markets UCITS ETF 0.22% 0.25%
FTSE Japan UCITS ETF 0.15% 0.19%
EUR Corporate Bond UCITS ETF 0.09% 0.12%
EUR Eurozone Government Bond UCITS ETF 0.07% 0.12%
U.K. Gilt UCITS ETF 0.07% 0.12%
USD Corporate 1-3 Year Bond UCITS ETF 0.09% 0.15%
USD Corporate Bond UCITS ETF 0.09% 0.12%
USD Treasury Bond UCITS ETF 0.07% 0.12%

Vanguard index fund price changes

 

Index Funds (Investor share class) New Ongoing Charge Figure (OCF) Old Ongoing Charge Figure (OCF)
Emerging Markets Stock Index Fund 0.23% 0.27%
Global Small-Cap Index Fund 0.29% 0.38%
Japan Stock Index Fund 0.16% 0.23%
Pacific ex-Japan Stock Index Fund 0.16% 0.23%
SRI European Stock Fund 0.16% 0.30%
SRI Global Stock Fund 0.22% 0.35%
Euro Government Bond Index Fund 0.12% 0.25%
Euro Investment Grade Bond Index Fund 0.12% 0.30%
Global Corporate Bond Index Fund 0.18% 0.25%
Global Short-Term Corporate Bond Index Fund 0.18% 0.25%
Japan Government Bond Index Fund 0.12% 0.25%
U.K. Government Bond Index Fund 0.12% 0.15%
U.K. Investment Grade Bond Index Fund 0.12% 0.15%
U.K. Short-Term Investment Grade Bond Index Fund 0.12% 0.15%
U.S. Government Bond Index Fund 0.12% 0.25%
U.S. Investment Grade Credit Index Fund 0.12% 0.30%
FTSE Developed World ex-U.K. Equity Index Fund 0.14% 0.15%
FTSE Global All Cap Index Fund 0.23% 0.24%
FTSE U.K. All Share Index Unit Trust 0.06% 0.08%
FTSE U.K. Equity Income Index Fund 0.14% 0.22%
U.K. Inflation-Linked Gilt Index Fund 0.12% 0.15%
U.K. Long Duration Gilt Index Fund 0.12% 0.15%

Vanguard active fund price changes

 

Active Funds New Ongoing Charge Figure (OCF) Old Ongoing Charge Figure (OCF)
Sterling Short-Term Money Market Fund 0.12% 0.15%

 

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