What You Need to Know
- Vanguard has cut fees on 17 funds; DFA is reducing fees on 47 funds.
- Vanguard and DFA fee cuts are on mutual funds and ETFs.
- DFA filed with the SEC in November to introduce 10 new ETFs.
Vanguard and Dimensional Fund Advisors are once again cutting fees on funds.
Vanguard has reduced fees on eight active equity and balanced mutual funds by one to 12 basis points and on nine bond index ETFs by one basis point, saving investors an estimated $18.9 million, according to the company.
DFA is cutting expenses on 47 mutual funds by 1 to 9 cents and on three ETFs by three to five cents, effective Feb. 22.
Vanguard said the cuts were the first round of fee reductions for the 2021-2022 fiscal year, which started Sept. 1. The cuts for its bond ETFs were enabled by “Investors’ continued adoption of Vanguard fixed income ETFs” across a range of products, including corporate credit, U.S. Treasury and mortgage-backed ETFs, according to Vanguard. Its U.S. bond ETF lineup has attracted $75.7 billion in cash flows through October 31. A complete list of the fee cuts are listed in this press release.
DFA Fee Cuts
DFA said its forthcoming fee cuts will save investors 13% on an asset-weighted basis for the impacted funds, which include U.S, global and international equity funds (including emerging markets), U.S. fixed income funds and U.S. and international sustainable stock and bond funds.