Vanguard lowers VGB management fees


Vanguard Australia has reduced the management fee for the Vanguard Australian Government Bond (VGB) Index ETF by four basis points from 0.20% to 0.16% per annum, effective March 27.

This latest fee reduction follows two fee decreases introduced this time last year for the Vanguard Australian Fixed Income Index ETF (VAF) and the Vanguard Australian Shares Index ETF (VAS).

Management fees for VAF fell from 0.15% to 0.10%, while fees for VAS fell from 0.10 to 0.07% per annum.

vanguard lowers fees on vgb

Vanguard Australia head of product offer Curt Jacques says keeping costs low is an important way Vanguard helps investors achieve their goals.

"Vanguard is focused on delivering value to investors through lower fees, high quality experience and best-in-class investment management," Jacques says.

Vanguard says it has delivered more than 40 fee reductions for Australian investors in the past decade across a range of products and services.

"This fee change may be good news for investors seeking to move out of cash holdings to capture low cost, durable, resilient yields, with the potential for additional price appreciation as rates eventually decline," Jacques says.

"Following the Reserve Bank of Australia keeping rates on hold last week and removing their tightening bias, our outlook for bonds remains positive and we expect interest rates to ultimately settle at levels above those in recent memory."

This article first appeared on Financial Standard

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Eliza Bavin is a senior journalist at Financial Standard and one of the hosts of the Financial Standard Podcast. She has previously worked at Sky News, Yahoo Finance and Channel 9. She has a Bachelor's degree in communications (journalism) from Charles Sturt University.