Vanguard clients saved a total of nearly USD75 million as a result of lower expense ratios reported on Thursday for 35 individual mutual fund shares, including 12 Vanguard target-date funds. Last month, the firm reported lower expense ratios for 53 fund shares.
"We strongly believe in setting our investors up for success, and one of the best ways to do that is to keep the cost of investing low, enabling them to keep more of what they earn," says Vanguard CEO Bill McNabb (pictured). "The compounding effect of high costs is especially corrosive to the returns of retirement investors – those saving over 30 to 40 years in a 401(k) plan or through an IRA. As a result, low costs, along with high savings rates, are critical to the retirement readiness of millions of Americans."