An open letter to investors

Of the investor. By the investor. For the investor. Since 1975.

May 01, 2025

A chart shows the average annual costs of investing in Vanguard and non-Vanguard funds, assuming hypothetical, constant $10,000 investments. Starting in 1975, the chart shows annual costs for Vanguard and non-Vanguard funds at similar levels, near $80. While non-Vanguard fund costs generally rose until about 1990, peaking above $80 per year, Vanguard fund costs generally trended down for the next 50 years. On average, Vanguard’s fund expense ratios have been significantly lower than those of our competitors. In general, this advantage has widened over time even though our competitors have lowered their expense ratios. In 2024, the average cost of investing a hypothetical $10,000 with Vanguard was $7, compared with $44 for investing with our competitors.
A series of five charts shows the percentages of Vanguard funds outperforming the average results of their competitors over the 10 years ended December 31, 2024. Overall, 84% of Vanguard funds outperformed. One hundred percent of Vanguard money market funds outperformed, while 72% of our bond funds, 91% of our balanced funds, and 88% of our stock funds outperformed.

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