Vanguard is lowering the expense ratio of its Target Retirement Funds to 0.08%, the investment management firm with $8.5 trillion in global assets announced Monday. That is one-fifth the cost of the average target date fund, Vanguard says, citing Morningstar data from 2020.
The change is effective immediately.
The firm announced in September it was merging its Target Retirement Funds and Institutional Retirement Funds and cutting fees. Average expense ratios were 0.12% for the former and 0.09% for the latter, a Vanguard spokeswoman told ThinkAdvisor at the time.
The series covers 89% of the global, publicly traded market, according to Vanguard.