Vanguard Group of Funds of Valley Forge, Pa. has eliminated the purchase fee on one of its stock index funds and reduced the fee on two others.

The Vanguard Mid-Cap Index Fund fee of 0.25 percent has been waived, while fees for the Vanguard Small-Cap Growth Index Fund and the Vanguard Small-Cap Value Index Fund have been reduced from 1.00 percent to 0.50 percent.

Vanguard reduced these fees because the net purchasing activity for funds has been reduced due to fewer share purchases and modest shareholder redemptions, said George Sauter, Vanguard's managing director. This has resulted in lower purchasing activity for the funds, and thus, lower transaction costs. Vanguard is passing on these savings to its customers in the form of lower fees.

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