Vanguard has announced the expense ratio for the Vanguard US Total Market Shares Index ETF (VTS) has declined from 0.07 per cent per annum to 0.06 per cent per annum.
This expense ratio change is due to the fund experiencing greater efficiencies through scale and Vanguard is passing these savings back to the fund investors in the form of lower expenses.
VTS is a cross-listed ETF, which means that its primary listing is on an overseas exchange and the fund is cross-listed, in this case, to the Australian Securities Exchange (ASX), making it accessible to Australian investors. This type of ETF is priced in local currency (e.g. Australian dollars) and sold in Australia as CHESS Depository Interests (CDIs).
Speaking about the price change, Robyn Laidlaw, Head of Vanguard’s product management and development in Australia said, “We are delighted when we can pass on the benefit of the growth in a fund to our Australian investors in the form of a lower expense ratio.”
“Maintaining low costs for investors is part of our DNA at Vanguard with our low cost philosophy driven from the mutual structure of our parent company,” she said.
VTS began trading on the ASX in May 2009. The ETF seeks to track the performance of the overall US stock market using the benchmark MSCI® US Broad Market Index, which represents a broadly diversified portfolio of securities traded on the New York Stock Exchange and the NASDAQ over-the-counter market.
