Vanguard is to expand the availability of its ultra-low-cost Admiral Shares to six additional domestic and international equity index funds. The new shares, which are expected to be available in late September, will feature expense ratios ranging from 0.10% to 0.21%.
“The introduction of additional Admiral Shares is another example of our long-term commitment to reduce the cost of investing for our clients,” says Bill McNabb (pictured), Vanguard Chairman and CEO, who noted that a significant portion of Vanguard’s total assets are now in Admiral Shares.
Of Vanguard’s USD1.7 trillion in US fund assets under management, about USD520 billion is held in Admiral Shares, representing nearly one-third of Vanguard’s total fund assets.
Admiral Shares were introduced by Vanguard in November 2000 to recognise and encourage the cost savings associated with large and long-tenured accounts by passing along these savings to shareholders in the form of lower fund expense ratios. In October 2010, Vanguard lowered the account balance minimums to qualify for index fund Admiral Shares for most retail clients from USD100,000 to USD10,000. A total of 75 funds will now offer Admiral Shares.
