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Vanguard expense ratio2/11/2023 ![]() ![]() When the market cratered, investors withdrew $16.4 billion from Vanguard’s index mutual funds. The trend began, like so much of what’s happened in 2020, in March. Since $22.8 billion of that went into ETFs, $48 billion actually exited. This is the first year in more than a decade in which more Vanguard index mutual funds have seen redemptions than purchases, with outflows totaling some $71 billion in the first nine months of the year, according to an analysis by Morningstar. That made the migration “inevitable,” Johnson says. The ETF version, with a ticker symbol of VTI, has an expense ratio of 0.03%. (Admiral shares require a $3,000 minimum investment and feature lower expense ratios than standard Vanguard investor shares.)įund’s Admiral shares (VTSAX), has an expense ratio of 0.04%. Vanguard has encouraged investors to swap out of its index mutual funds to ETFs in recent years, dropping expense ratios for the ETF versions of many core funds below those of the Admiral share class for mutual funds. “Vanguard has been taking money out of one pocket and putting it into another,” says Ben Johnson, director of ETF research at For the first nine months of this year Vanguard took in $60.3 billion, or just 47% of what it did in the same period last year. It also suggests that inflows into Vanguard’s index funds-both mutual funds and ETFs-were sharply lower than last year. Roughly 17% of Vanguard’s ETF flows so far this year, or $22.8 billion, came from people moving money out of a mutual fund and into the ETF version.īack those flows out, and Vanguard’s ETF inflows for the nine months were $111.5 billion-still ahead of BlackRock, but less comfortably. Vanguard has a unique structure: Its ETFs are actually a share class of its index mutual funds. ![]() Freddy Martino, a Vanguard spokesman, says that Vanguard maintains its lead in ETFs.īut a significant portion of those ETF inflows aren’t money that’s new to the firm. Which took in $106.3 billion, State Street Global Advisors, which saw inflows of $21 billion, andįor Vanguard, the haul from the first nine months of the year is much greater than the $119.3 billion in ETF inflows it saw in 2019. Investors added $134.3 billion to Vanguard ETFs in the first nine months of the year, according to ETFGI, up 73% from a year earlier.
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