Vanguard announced Wednesday that it is eliminating frequent trading fees on more than 30 mutual funds, including 19 equity index funds and 14 actively managed funds. The cutting of so-called “contingent redemption fees” on the 33 funds is effective immediately.
“After careful analysis of investor transaction activity and net cash flow, Vanguard determined that these fees, one of several measures in place to discourage frequent trading, are no longer needed,” the company said in a release.
Headquartered in Valley Forge, Pa., Vanguard is one of the world’s largest investment management companies, managing nearly $1.84 trillion in U.S. mutual fund assets.
Additional measures include prohibiting an investor’s purchases or exchanges into a fund account for 60 calendar days after the investor has redeemed or exchanged out of that fund account, according to Vanguard. The fund company also retains the right to reject any purchase request if it would negatively affect a fund’s operation or performance.
Two Vanguard funds, the FTSE All-World ex-U.S. Small-Cap Index and the Global ex-U.S. Real Estate Index, will continue to assess non-contingent transaction fees on share redemptions.
Vanguard fund redemption fees are as follows:
Developed Markets Index
Emerging Markets Select Stock
Emerging Markets Stock Index
European Stock Index
FTSE All-World ex-US Index
Pacific Stock Index
Total International Stock Index
Total World Stock Index
2% Fee on Shares Redeemed Within Two months of Purchase
Consumer Discretionary Index
Consumer Staples Index
Health Care Index
Information Technology Index
Telecommunications Services Index
2% Fee on Shares Redeemed Within One Year of Purchase
Precious Metals and Mining
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