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Regulation and Compliance > Federal Regulation > SEC

Vanguard Offers New Fund Expense Data

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Oct. 22, 2003 — Vanguard Group, the nation’s second largest mutual fund company, said it has adopted a proposal by the Securities and Exchange Commission to disclose fund operating expenses in dollars and cents instead of as a percentage of assets.

Vanguard said it is providing the new expense data in its 2003 shareholder reports. The materials, the company said, include a table showing actual costs investors would incur over the course of the fund’s latest fiscal year, based on a $10,000 investment, and the fund’s actual expenses and its total return for the period.

The SEC this year said it supports proposed federal legislation to provide more information, including dollars-and-cents expense disclosure, to fund shareholders. The legislation incorporates proposals made by the SEC last year.

Vanguard, which is known for keeping fund expenses low, said it believes the new way of illustrating expenses “is a useful and timely concept.”

The new data on expenses is featured in the recently published annual reports for Vanguard US Growth (VWUSX), Vanguard PRIMECAP (VPMCX), Vanguard International Growth (VWIGX), Vanguard Calvert Social Index/Inv (VCSIX), and Vanguard’s money market funds. The company said it plans to include the new expense disclosure in all its annual and semi-annual reports.


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