Vanguard is continuing its trend of cutting the legs out from under its competition by eliminating or reducing fees on 34 Vanguard funds.

As of May 23, the firm said its investors will no longer have to pay contingent redemption fees for selling shares of a number of index and actively managed Vanguard funds. “Because we have other measures in place to protect the interests of long-term investors and to discourage frequent trading, we determined that we no longer needed this fee,” according to its Web site.

If the fund offers both Investor and Admiral Shares, the change applies to both classes, according to the firm.

Also, investors’ purchase and redemption fees for Vanguard FTSE All-World ex-US Small-Cap Index Fund have decreased from 75 basis points to 50 bps. The firm also reduced the minimum investment requirements for the Institutional share classes of the Vanguard Short-Term Investment-Grade Fund, Vanguard Intermediate-Term Bond Index Fund and the Vanguard Long-Term Bond Index Fund.

Hung Tran writes for Money Management Executive.



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