Vanguard has announced its second broad round of fee cuts in the past 12 months. This one reduced the
on 84 share classes of 53 mutual funds and exchange-traded funds. The lower expense ratios take effect Feb. 2, 2026.
These funds represented about 10% of the $11.5 trillion in Vanguard’s US mutual funds, ETFs, and money market funds at the end of 2025.
How the 2026 Cuts Compare with 2025
Although this round was smaller in scope than last year’s, it was still impressive in terms of the money it should save Vanguard’s clients. Vanguard estimates its clients will pocket around $250 million through the end of 2026. Last year’s cuts were the broadest in the company’s history and saved Vanguard investors an estimated $350 million over the last 11 months of 2025, according to the firm.
All the affected funds track an index or hold a mix of index-tracking funds. Many of them charge some of the lowest expense ratios in their respective categories, so most of the cuts amounted to marginal reductions on already slim expense ratios.
How Much Will Investors Save?
Lower fees are always good, but these cuts won’t dramatically improve clients’ returns. The median expense ratio of this group was just 0.06% before the announcement, while the median reduction was 0.01%.
Small fee reductions do compound to larger savings over time and pressure Vanguard’s rivals to trim their fees as well.
The reductions also send a powerful signal about Vanguard’s priorities and commitment to its mission. It could easily spend the money in other ways while continuing to provide low fee investments that serve client interests. But the reductions show a willingness to forgo a large amount of potential revenue to advance its clients’ interests.
Low fees have been key to Vanguard’s success for 50 years and propelled the firm to another prolific year in 2025. Investors parked hundreds of billions of new money in its mutual funds and ETFs. It introduced 15 new ETFs in 2025 that fit the low-cost mold, the largest number of new ETFs it has created in a calendar year since 2010.
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