ETF Vanguard Investments Australia Ltd announces the following management fee change:

Effective 1 July 2019, the management fee for the Vanguard Australian Shares Index ETF (VAS) will be reduced:
ETF ASX CODE
Management Fee to 30 June 2019 Management Fee from 1 July 2019
Vanguard Australian Shares Index
ETF VAS 0.14% p.a => . 0.10% p.a.

( DYOR )

i hold VAS

this reduction is unlikely to inspire me to buy more ( i do participate in the DRP , though ) i would need a major drop in unit price ( similar to what would happen in a market crash )) to open up the wallet

 

I think the important thing to be inspired by is the effect of reduced costs on your portfolio in the long term.
I was around in the days when fund manager fees, platform fees, advisor fees, etc all ate away at the bottom line ... significantly.
Recently I've enjoyed a rate cut from my lender, and now a reduction in ETF management fees ... this is all good for me.
As vanguard are quoted as saying: "What you don't spend, you keep!"

... and apparently Vanguard are still not the cheapest, so we might see further improvements

Fingers crossed.

Cheers

Luke

 

cheap fees are nice but they should not come at the expense of performance .

as the fees slide towards 0% one must wonder how they cover normal expenses

 

Vanguard are not the cheaps ... but they are one of the largest so I expect they have an economy of scale that affords them the opportunity to pass on savings.

They seem to me to 'talk the talk', but more importantly and demonstrably 'walking the walk'.

I cant recall who off the top of my head, but a much smaller player offering an almost identical product are quoting a management fee around the 0.07% mark ...

I'm quite happy to accept the reduced fees ... as Vanguard say "What you don't spend, you keep!"

 

i don't use 'cheapest ' as a primary screen although an excessively large fee could easily be a factor in exclusion

VAS ( and VHY ) did what i wanted in 2011 and they might easily have been the cheapest of the type at the time , to boot ( i know they were competitive )

VAS was bought as an 'insurance ' against ( personal ) bad stock selection and an ETF covering the top 300 made better sense than the rivals covering the top 200 , to me

and so far VAS has not disappointed , BUT when talking to people considering VAS now .. a little bit of research is recommended , and sure folks looling 40 years into the future , the differences now might not be life-changing

 

I hold VAS would love to buy more but at close to 85$ a share and the ASX closing in on 7000 i will be waiting for a drop in the market before i pick up some more

but great news to here the fees drop thanks

 

depending on where the market drops the steepest i am more likely to focus on individual stocks this time , i have more experience and confidence now ( VAS and VHY were bought as 'insurance ' and they have done well, and should navigate a major downturn , so no obvious reason to exit , i participate in the DRP in both so at the market dips it normally translates into more shares added , automatically

( i bought VAS and VHY in my first year of trading , not that i regret that plan , it was wise for me at the time , the market was low and i was a relative novice , but i know which banks , miners and oil plays to avoid now , i should be able to tweak the performance )

 

Index giant Vanguard drops fees amid ETF price war

Index giant Vanguard drops fees amid ETF price war | Finder