Vanguard to simplify account fees

The Vanguard Group Inc. today said it plans to simplify its account fees, and will also offer ways for investors to avoid them entirely.
APR 26, 2007
By  Bloomberg
The Vanguard Group Inc. today said it plans to simplify its account fees, and will also offer ways for investors to avoid them entirely. The Malvern, Pa.-based mutual fund firm said it will eliminate four account-related fees and replace them with a single account service fee. Vanguard’s annual fees currently are based on account type, fund type and account balance. For instance, a $10 custodial fee is charged on individual retirement accounts with balances below $5,000. Vanguard also charges a $10 maintenance fee on index fund accounts with balances below $10,000 and a $10 custodial fee on Education Savings Accounts with balances below $5,000. It also charges a $10 low-balance fee on all general accounts with balances below $2,500. Beginning in June, Vanguard will implement a single-fee approach that will assess a $20 yearly fee on all fund accounts with balances below $10,000. Under the new plan, shareholders will also have three options to invest fee-free. One way would be to establish account access on Vanguard.com and select electronic delivery of statements, reports and prospectuses. The second way would be by maintaining total Vanguard fund assets of $100,000 or more. The third option would be consolidating accounts or investing additional assets to bring all account balances to $10,000 or more. “We are pleased to simplify our fees and provide the opportunity to our shareholders to pay no fees beyond our low fund expense ratios,” said Vanguard Chief Executive John J. Brennan in a statement.

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave