News release

Vanguard Reports Expense Ratio Changes for Six Funds

Four bond ETFs report lower fees

VALLEY FORGE, PA (April 29, 2022)—Vanguard today reported expense ratio changes for six funds across multiple ETF and mutual fund share classes with fiscal years ending December 2021. The changes include reductions for four broadly diversified bond ETFs and represent $8.8 million in aggregate net savings for investors.1  Vanguard’s investor-owned corporate structure enables the firm to return value to shareholders through lower costs and reinvestments to improve capabilities, technology, and client experience.2

Expense ratio changes occur for a variety of reasons, including asset growth and operational efficiencies. For most of Vanguard’s external advisory arrangements, the advisor’s fee is also subject to an adjustment up or down based on their investment performance relative to the total return of an appropriate benchmark. Expense ratio changes may also reflect other types of portfolio management expenses. For funds that employ both long- and short-selling strategies, such as Vanguard Market Neutral Fund, expense ratios may include borrowing expenses and dividend expenses on securities sold short.

Vanguard fund and ETF expense ratio changes

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2020 fiscal-year-end expense ratio

2021 fiscal-year-end expense ratio

Change (in basis points)

Vanguard Intermediate-Term Bond ETF





Vanguard Long-Term Bond ETF





Vanguard Short-Term Bond ETF





Vanguard Total Bond Market ETF





Vanguard Managed Allocation Fund





Vanguard Market Neutral Fund Investor Shares





Vanguard Market Neutral Fund Institutional Shares






About Vanguard

Founded in 1975, Vanguard is one of the world's leading investment management companies. The firm offers investments, advice, and retirement services to individual investors, institutions, and financial professionals. Based in Valley Forge, Pennsylvania, Vanguard has offices worldwide and managed $8.1 trillion on behalf of 30 million clients as of March 31, 2022. Vanguard operates under a unique, investor-owned structure where Vanguard fund shareholders own the funds, which in turn own Vanguard. As such, Vanguard adheres to a simple purpose: To take a stand for all investors, to treat them fairly, and to give them the best chance for investment success. For more information, visit

All figures as of March 31, 2022 unless stated otherwise.

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 December 2021.

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

For more information about Vanguard funds, visit 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.

Vanguard ETF Shares are not redeemable with the issuing fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.

All investing is subject to risk, including the possible loss of the money you invest.

Bond funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments.