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Vanguard Fee Cuts - But Not In The UK ?

Index tracking funds and ETFs
LondonChris
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Vanguard Fee Cuts - But Not In The UK ?

#709501

Postby LondonChris » February 3rd, 2025, 3:26 pm

Vanguard today is making a big splash with their announcement: "Announcing the largest fee cut in Vanguard history" in which they say "Vanguard is lowering the cost of investing. Effective February 1, 2025, the firm reduced fees on 168 share classes across 87 funds. The fee reductions are expected to save investors more than $350 million this year alone."

https://corporate.vanguard.com/content/ ... ar%20alone.

Now I hold a Vanguard ETF (VHVG) and also a fund (VDWXEIA which is the FTSE Developed World ex-U.K. Equity Index Fund). Unless I'm mistaken, neither seem to be covered by Vanguard's fee cuts. Neither do the popular ETFs, VUSA or VWRP, seem to feature. We know that passive funds are cheaper in the US than over here - for all asset classes. Is Vanguard further increasing the fee differential between its US customers and international customers - or am I mistaken and have missed something ? If UK investors are missing out it seems a raw deal to me.

Thoughts most welcome.

xxd09
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Re: Vanguard Fee Cuts - But Not In The UK ?

#709665

Postby xxd09 » February 4th, 2025, 10:15 am

I posed this question on the Bogleheads forum a few days ago and the reply I got was that U.K.Vanguard investments not included at this time
Perhaps we should be pursuing this with Vanguard U.K. directly
xxd09

LondonChris
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Re: Vanguard Fee Cuts - But Not In The UK ?

#709685

Postby LondonChris » February 4th, 2025, 12:10 pm

Yes, it may be worth calling Vanguard in the UK. It's easy to say that it's "only" one call and what good will that do etc., but the only way they will ever hear any noise is if UK customers reach out.

More powerful though will be the Youtube financial influencers. For example, Ramin Nakisa at PensionCraft has a reasonable following and himself personally holds most of his wealth via a Vanguard ETF on their platform. In the past, Ramin has not been shy of publicly criticising Vanguard and I would bet good money he has contacted them asking for a response. I would expect that several influencers are fact checking and preparing video content as I write. I think in the next few days we should see a couple of Youtube videos coming out.

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Re: Vanguard Fee Cuts - But Not In The UK ?

#709687

Postby scrumpyjack » February 4th, 2025, 12:16 pm

Bear in mind that The Vanguard Group, Inc. is owned by Vanguard's US-domiciled funds and ETFs. Those funds in turn are owned by their investors.

So their aim will be what is in the interests of their owners - the US ETFs

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Re: Vanguard Fee Cuts - But Not In The UK ?

#709689

Postby GeoffF100 » February 4th, 2025, 12:30 pm

I believe that Vanguard said relatively recently that they did not have enough scale for price cuts in the UK. A pity. Vanguard's fund Annual Management Charges are my second biggest regular expenditure after HMRC.


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