Vanguard Reports Expense Ratio Reductions for Active Equity and Bond Funds

Investors saved estimated $4.4 million

VALLEY FORGE, PA (February 1, 2022)—Vanguard reported lower expense ratios for seven share classes of actively managed mutual funds and one index ETF in prospectus filings for funds with fiscal years ending September 30, 2021. As a result of these expense reductions, $4.4 million in savings was returned to investors.¹ This represents the second of six rounds of annual prospectus updates in Vanguard’s 2021-2022 fiscal-year reporting period, which runs from December to May.

The breadth and success of Vanguard’s active franchise have contributed to asset growth and operational efficiencies, enabling the firm to drive down expense ratios across its active lineup. Vanguard’s active bond funds reporting lower expenses include Investor Shares of the $6.2 billion Vanguard Core Bond Fund as well as Investor and Admiral Shares™ of the $2.6 billion Vanguard Emerging Markets Bond Fund. Among Vanguard’s active equity funds, Investor and Admiral Shares of the $21.2 billion Vanguard Capital Opportunity Fund and the $568.1 million Vanguard International Core Stock Fund are reporting lower expenses. The $19.9 billion Vanguard Short-Term Inflation-Protected Securities ETF is also reporting a lower expense ratio.

Vanguard’s investor-owned² corporate structure enables the firm to return value to shareholders through lower costs and reinvesting to improve capabilities, technology, and client experience. Vanguard has continued to invest heavily in its active fund lineup to offer carefully curated and enduring investments that deliver long-term value. The firm is keenly focused on both developing internal investment talent and partnering with world-class external advisors.

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About Vanguard

Vanguard is one of the world’s largest investment management companies. As of December 31, 2021, Vanguard managed $8.5 trillion in global assets. The firm, headquartered in Valley Forge, Pennsylvania, offers 422 funds to its more than 30 million investors worldwide. For more information, visit vanguard.com.

Asset and cash flow figures as of December 31, 2021 unless otherwise noted.

1 Estimated savings for the identified funds is the difference between prior and current expense ratios multiplied by the average assets under management (AUM). Average AUM is based on daily average assets during a month, which are then averaged over the 12 months of the fiscal year ending September 30, 2021.

2 Vanguard is client-owned, meaning the U.S. fund shareholders own the funds, which in turn own Vanguard.

For more information about Vanguard funds, visit vanguard.com to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.

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