Vanguard Group has a message for competitors trying to undercut its prices: Game on.
In recent years, rival asset managers such as Fidelity Investments and BlackRock Inc. have cut their fund fees to match or beat Vanguard, the low-cost investing pioneer with $4.4 trillion in assets.
Tim Buckley, Vanguard’s new president and incoming chief executive officer, said the company will keep lowering fund expenses as it grows.
“As we continue to get scale, as we continue to grow and we get more efficient, we pass a large part of that back to our clients in the form of lower expenses. That’s not going to stop,” Buckley said Thursday on a company webcast. “If other people want to offer index funds, great. But you better be ready to keep lowering price, and we’re going to do it across every product.”
Fee wars have broken out across the U.S. asset management industry. This week Fidelity announced fee cuts on 14 passive products and said some of its funds now have net expenses below comparable ones at Vanguard.