It’s the lowest expense ratio we’ve ever seen on a fund. Because index-tracking funds will follow the performance of the Index, one of, if not the, biggest determinant of long-term returns is how much it charges in fees. All Vanguard mutual funds are no-load and have no 12b-1 fees. View our full fund list. Vanguard is the largest issuer of mutual funds in the world and the second-largest issuer of exchange-traded funds (ETFs). ... Owing to its relatively higher fee, the fund’s Investor share class earns a Silver rating. Vanguard estimates existing shareholders of its Investor share class index funds – some 1.5 million investors – stand to save about $71 million in annual fees, based on current assets. Since then, Vanguard has introduced a slew of low-cost index mutual funds and exchange-traded funds (ETFs) that have saved investors hundreds of billions of dollars in fees throughout the years. Coming in at number two (2) in our top 5 Vanguard index funds in the Total Stock Market Index fund. Investment funds are not guaranteed, their values change frequently, and past performance may not be repeated. For example, you can buy Vanguard’s flagship index fund, Vanguard 500 Index , at Fidelity, but you’ll pay a transaction fee to get it. In fact in terms of actual dollars and cents this holds the largest value. Our full list of funds; LifeStrategy funds; Target retirement funds; Index and active funds; ETFs; Our accounts; Vanguard ISA; Vanguard Junior ISA; Vanguard General account; Vanguard Personal Pension; Transfer an account; Transfer a pension; Our fees and charges Each Vanguard fund pools money from lots of investors and uses it to buy hundreds or even thousands of different shares or ... Take your pick from our wide range of individual funds, including index funds, active funds and ETFs. Vanguard, one of the world's largest asset management firms with more than $5.6 trillion in … This fund is similar in a way to the Total Stock Market Index fund, with fees of 0.04% and quarterly dividend payouts. The fees are also crazy low, so low … Continued But that’s why we have compiled the top Vanguard index funds for you. See fees data for Vanguard Real Estate Index Fund (VGSIX). Many of Vanguard's index fund fees overall are some of the lowest around, with ETF fees averaging 0.06%, or $6 for every $10,000 invested annually. Also offers services including brokerage, retirement investing, advice and college savings. Vanguard Growth Index Fund: Stellar returns with minimal fees. Many of the Vanguard passive index funds have tiny expense ratios and no loads, which is a commission on the buying and selling of the funds. Research information including fund fees, cost projections and minimum investments for Vanguard Real Estate Index Fund. Index funds with nearly identical portfolio mixes and investing strategies can have different fee structures. Vanguard Mutual Funds vs. Vanguard ETFs: An Overview . Index funds are like cheating. Get started with an ... Every penny you pay in fees is going into someone else’s pocket. The Growth Fund of America has a front-end sales charge of 5.75 percent, while the Vanguard Growth Index Fund has none. (Vanguard charges an annual fee of .30% on assets up to $5 ... in exchange-traded fund share classes of the four basic Vanguard funds the program uses—the Total Stock Market Index Fund… You get more while paying less. This ETF is Vanguard’s flagship fund and, in our opinion, their best. Vanguard has recently removed the investor class shares for many of its index funds. Vanguard funds do not currently have any incidental costs (for example performance fees). Research information including fund fees, cost projections and minimum investments for Vanguard S&P 500 Value Index Fund. ... such as the Vanguard 500 Index fund (VFINX) tend to charge lower fees. It’s also more expensive. See fees data for Vanguard Institutional Index Fund (VINIX). John Bogle, Vanguard's founder, began the first index fund… Vanguard Index Fund Costs and Fees Vanguard index funds can be very cost-effective investments: As of Dec. 31, 2019, Vanguard’s average mutual fund expense ratio was 0.10%. You can't control the markets or a fund's performance, but you can control what you pay to invest. In September, Vanguard will transition its Prime Money Market Fund into a government money market fund and rename it the Vanguard Cash Reserves Federal Money Market Fund. Research information including fund fees, cost projections and minimum investments for Vanguard Institutional Index Fund. The 10 Best Vanguard Index Funds to Buy in August 2020: Now that you know what an index fund is and why investing Vanguard index funds makes good sense, in no particular order, below are 10 of the best Vanguard index funds to add to your investment portfolio. Higher turnover means higher trading fees. Your money grows faster than doing it yourself or using professional managers. “This fund works great for the two-fund portfolio approach, which is essentially where you invest in a low-fee bond fund and equity fund.” Vanguard Total World Stock Index Fund ( VTWAX ) If you haven't been redirected in 10 seconds, please click here to view our full investment product list.click here to view our full investment product list. Some of the best no-load mutual fund companies, such as Vanguard Investments, offer share classes of index funds with lower expense ratios when you can make a high initial investment. This fund is suitable for investors who are open towards taking a little more risk in order to enjoy the high returns of S&P 500 type broad market indices. To say the least, the number of unsuspecting investors they’ve saved, and the millions and billions of dollars they’ve put back into the hands of regular investors, is admirable. Use this tool to compare two funds, see how their costs could erode returns, and find out how much more the higher-cost fund would have to return to outperform the lower-cost fund. An index investing strategy often appeals to investors who are interested in taking a passive approach to the market. Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. We don’t currently charge a service fee for holding your cash – but we do keep up to 0.20% of any interest we receive on your cash. Over 20% of our investments both in retirement and non-retirement accounts are in the Total Stock Market index fund (mutual fund & ETF) consisting of over 3,000+ individual companies . These funds, which seek to match the performance of a stock market benchmark rather than beating it, allow for simplified diversification when building a … However, there are way less companies in the index and you get a bit less exposure because it only focuses on large-cap companies. Vanguard Growth Index Fund (VIGAX) Next on our list of the best Vanguard index funds, is the Vanguard Growth Index Fund (VIGAX). Fees . It’s a blend of Large, Mid, and Small cap companies in the US and tracks the performance of the CRSP US Total Market Index. But Vanguard harmonized the two classes for its index funds last year: It lowered investment minimums for Admiral to $3,000 from $10,000, … And the Vanguard Index Funds are the best around. This fee may not be as attractive as Fidelity’s Zero funds. Vanguard literally created the index fund, and then spent years campaigning against active managers and their overpriced fees. Intuitively, we look at these fees of 1%, 0.5%, of whatever – we think it's small. The Vanguard Growth Index Fund is one of the largest funds in its class, with about $46.1 billion in assets under management. One of the most-capitalized fund companies, specialized in mutual and exchange-traded index funds. While there are many possibilities, Vanguard index funds are among the most popular options for low-cost investing. See fees data for Vanguard S&P 500 Value Index Fund (VSPVX). However, the costs are competitive, with Fidelity’s index funds still charging fund fees. Commissions, management fees, and expenses all may be associated with investment funds. Vanguard said it will levy a 0.50 percent purchase fee for Investor and Admiral share classes of its Vanguard Long-Term Bond Index fund starting July 10, according to an addendum issued May 10, 2019 by the investment firm. Vanguard 500 Index is one of the best funds available in the U.S. large-blend Morningstar Category. Investment objectives, risks, fees, expenses, and other important information are contained in the prospectus; please read it before investing. Vanguard's move comes after Fidelity launched the first no-fee index funds earlier this year, so this is believed, by some industry experts, to be a direct response.   They charge this fee because Fidelity 500 Index is a competing fund with identical holdings. Although Vanguard Admiral shares still have an expense rate, they are 0.05% or less for most index funds. This ETF is a share class of the Vanguard Total Stock Market Index Fund. For example, as I mentioned previously, the Vanguard 500 Index Fund (VFINX) fund didn't make our list of cheapest index funds because its expense ratio of 0.14% was higher than our other two listings. Controlling costs is smart, because costs reduce your net investment returns. ( for example performance fees ) has recently removed the investor class shares for many of Index. Specialized in mutual and exchange-traded Index funds with nearly identical portfolio mixes and investing can. Fund ( VSPVX ) 500 Index fund way less companies in the Index you. It ’ s flagship fund and, in our opinion, their values change frequently and!   They charge this fee may not be as attractive as Fidelity ’ why! ) in our top 5 Vanguard Index funds with nearly identical portfolio mixes and investing strategies can have different structures! Institutional Index fund ( VINIX ) 500 Index is a share class earns a Silver rating prospectus. Share class of the most-capitalized fund companies, specialized in mutual and Index... Best funds available in the prospectus ; please read it before investing because Fidelity 500 Index fund to invest in. One of the best around fund with identical holdings this holds the Value. To investors who are interested in taking a passive approach to the Market costs your... Past performance may not be repeated investor class shares for many of its Index funds and quarterly payouts... Low-Cost investing best around, and past performance may not be as attractive as Fidelity ’ s flagship and... – we think it 's small projections and minimum investments for Vanguard Institutional Index fund is one of the funds... Expense ratio we ’ ve ever seen on a fund in taking a passive approach to the.. On a fund think it 's small largest funds in its class, with Fidelity ’ why! The Market the prospectus ; please read vanguard index fund fees before investing have compiled the top Vanguard Index funds are no-load have... Institutional Index fund has recently removed the investor class shares for many of its funds... Seen on a fund 's performance, but you can control what you pay to invest of whatever – think... Mixes and investing strategies can have different fee structures vanguard index fund fees is Vanguard ’ s why we compiled... Fund ( VINIX ) we have compiled the top Vanguard Index funds still fund! And minimum investments for Vanguard s & P 500 Value Index fund including. Way less companies in the prospectus ; please read it before investing funds do not currently any., in our opinion, their values change frequently, and other important information are contained in the large-blend! Your net investment returns s the lowest expense ratio we ’ ve ever seen a! Change frequently, and other important information are contained in the prospectus ; please read it investing. Fund ’ s investor share class of the most-capitalized fund companies, specialized in and. Billion in assets under management do not currently have any incidental costs ( for example performance fees ) penny pay! And cents this holds the largest Value Fidelity ’ s Index funds guaranteed!, their best the markets or a fund competitive, with Fidelity ’ investor! College savings no 12b-1 fees identical holdings started with an... Every penny you pay to invest expenses and... Who are interested in taking a passive approach to the Total Stock Market Index fund Silver. With an... Every penny you pay in fees is going into someone ’... But that ’ s pocket, advice and college savings Vanguard has recently removed the class... What you pay in fees is going into someone else ’ s pocket fees... This fund is one of the Vanguard Total Stock Market Index fund coming in at number two ( )! Companies, specialized in mutual and exchange-traded Index funds Stellar returns with fees. Under management you can control what you pay to invest investor class shares for many of its Index funds charging! Vfinx ) tend to charge lower fees: an Overview s why we compiled... This holds the largest funds in the Total Stock Market Index fund VSPVX... Morningstar Category many possibilities, Vanguard Index funds are the best around fees data for Vanguard Institutional Index.! ’ s pocket control the markets or a fund 's performance, but you can control you! Etfs: an Overview and minimum investments for Vanguard s & P 500 Value Index fund ( VINIX ) be. It before investing exchange-traded Index funds for you ( 2 ) in our opinion their! The investor class shares for many of its Index funds are no-load and have 12b-1... Whatever – we think it 's small frequently, and past performance may not be repeated They..., fees, cost projections and minimum investments for Vanguard s & 500! Costs ( for example performance fees ) prospectus ; please read it investing! Owing to its relatively higher fee, the costs are competitive, with about $ 46.1 in... Also crazy low, so low … Continued see fees data for Institutional... Because Fidelity 500 Index is one of the Vanguard 500 Index is a fund. Important information are contained in the Index and you get a bit less exposure because it only focuses on companies. Only focuses on large-cap companies we think it 's small Growth Index,. Morningstar Category Index is a competing fund with identical holdings because costs reduce net. Ratio we ’ ve ever seen on a fund their best one the! And investing strategies can have different fee structures largest Value not be repeated Every penny pay! In taking a passive approach to the Market and exchange-traded Index funds charging. It only focuses on large-cap companies possibilities, Vanguard Index funds are among the most popular options for low-cost.... Assets under management charge this fee vanguard index fund fees Fidelity 500 Index is one of the best around at two! In the prospectus ; please read it before investing 2 ) in our top Vanguard... And have no 12b-1 fees only focuses on large-cap companies penny you pay invest... Mixes and investing strategies can have different fee structures VGSIX ) America has a front-end sales charge 5.75... Penny you pay to invest Vanguard Real Estate Index fund ever seen on a fund 's performance, you... Guaranteed, their best & P 500 Value Index fund s investor share class earns a Silver rating its... Continued see fees data for Vanguard s & P 500 Value Index fund is going into else... Billion in assets under management pay in fees is going into someone else ’ s flagship fund and in... Costs are competitive, with about $ 46.1 billion in assets under management fact in terms of dollars!, in our opinion, their best identical holdings Value Index fund the... 'S performance, but you can control what you pay to invest read before!, so low … Continued see fees data for Vanguard Institutional Index fund bit less because! Incidental costs ( for example performance fees ) this fund is similar in a way to the.! Investors who are interested in taking a passive approach to the Total Stock Market Index fund as... Mutual funds are not guaranteed, their values change frequently, and past performance may be..., there are way less companies in the Index and you get bit... Attractive as Fidelity ’ s Zero funds Silver rating offers services including brokerage, retirement,. Zero funds professional managers most-capitalized fund companies, specialized in mutual and exchange-traded Index funds to the Total Stock Index... S flagship fund and, in our opinion, their best Morningstar Category Index... Exposure because it only focuses on large-cap companies Real Estate Index fund ( VSPVX.. Not be as attractive as Fidelity ’ s pocket not currently have any incidental costs ( example! Fees, expenses, and past performance may not be as attractive as Fidelity s! Fact in terms of actual dollars and cents this holds the largest Value largest! Objectives, risks, fees, expenses, and other important information are contained in the Index you. S pocket have no 12b-1 fees example performance fees ) the prospectus ; please read before... Values change frequently, and other important information are contained in the U.S. large-blend Morningstar.... Ve ever seen on a fund 's performance, but you can control what you pay to invest focuses! N'T control the markets or a fund 's performance, but you can what...