There will always be debate regarding investing in actively-managed stock pickers vs. passive index followers. But even for active managers, costs matter more than star ratings and past performance. The lower the expenses, the less headwind year in and year out.
The best thing about using Vanguard funds is that they have consistently lowered my investment fees over time as their own costs have dropped. When that happens, it’s like getting guaranteed higher returns that continue to compound each year.
Last year, they lowered the fees on several funds and also added Admiral shares. Last month, they dropped some fees on their Emerging Markets fund. Most recently, they announced another round of expense ratio cuts. Check the article for all the funds, but here are the ones that I hold:
| Funds In My Personal Portfolio | Old expense ratio | New expense ratio |
|---|---|---|
| Vanguard Emerging Markets Stock Index Fund (Investor shares) | 0.35% | 0.33% |
| Vanguard Emerging Markets Stock Index Fund (ETF/Admiral) | 0.22% | 0.20% |
| FTSE All-World ex-US Index (ETF) | 0.22% | 0.18% |
| Total International Stock Index (Investor shares) | 0.26% | 0.22% |
| Total International Stock Index (ETF/Admiral) | 0.20% | 0.18% |
The total weighted expense ratio of my investments is probably under 0.20% annually now. The only way to go lower is to hold the stocks or bonds directly in a brokerage account, and even then I have consider commission charges.
The Best Credit Card Bonus Offers – 2025
Big List of Free Stocks from Brokerage Apps
Best Interest Rates on Cash - 2025
Free Credit Scores x 3 + Free Credit Monitoring
Best No Fee 0% APR Balance Transfer Offers
Little-Known Cellular Data Plans That Can Save Big Money
How To Haggle Your Cable or Direct TV Bill
Big List of Free Consumer Data Reports (Credit, Rent, Work)
Gotta love Vanguard! Over the long term, incurring unnecessary management fees can unnecessarily limit performance – thanks for the update.
Thank you for clearing that up for me. I bought the ETF for Total International last week and noticed the 0.18% er and thought it looked smaller than I remembered it.
If I convert VEIEX to VEMAX (admiral of VEIEX), will I get hit by Redemption Fee:2% if held < 2 mos for my newest shares?
@aa – I don’t think so, but I would call them up to confirm. Otherwise, just try it and it will tell you about the fee before you complete the transaction, if there is one.
More love for Vanguard 🙂
Vanguard is great, but does this mean that all you hold in your portfolio are foreign equities? Or those are just the only funds that you hold that have had their expenses lowered?