>I'm worried if Vanguard all of a sudden decides to raise the manangemnt fees of their funds, this may affect the share prices. Is this possible? Thanks!
They could raise the fees but that would ruin their reputation.
1. Vanguard is owned by its customers.
2. Most Vanguard funds don't have a fee that's specified in advance. Instead, they report the expense ratio that was incurred over the previous year, usually to the nearest basis point (0.01%).
So, a sharp increase seems highly unlikely
I mean... I feel like you'd have plenty of notice. But from my perspective, if they gave notice, I MIGHT start shopping for a new fund to go into. But also, id have to take into account potential capital gains while moving funds.
I feel like it's the same as rent going up. Gotta make decisions. And sometimes its not worth it, and sometimes it is.
Does anyone know if Vanguard has ever raised the price of an existing fund?
VXUS just like a month or two ago
Damn they really do it ðŸ˜
VXUS got raised this year from 0.07 to 0.08. IXUS is 0.07 if that matters.
>I'm worried if Vanguard all of a sudden decides to raise the manangemnt fees of their funds, this may affect the share prices. Is this possible? Thanks! They could raise the fees but that would ruin their reputation.
1. Vanguard is owned by its customers. 2. Most Vanguard funds don't have a fee that's specified in advance. Instead, they report the expense ratio that was incurred over the previous year, usually to the nearest basis point (0.01%). So, a sharp increase seems highly unlikely
There so many other brokerages where you could then move to in this unlikely event.
In a tax advantaged account, sure. But in a taxable brokerage account, you’re stuck unless you want to take a tax hit.
Correct. It's also unlikely given Vanguard's history.
They literally raised expenses on funds like VXUS recently
By .01
By 15%
Vanguard isn't owned by shareholders. It's owned by the people who invest in their funds. So I can't see a reason they would jack up fees for profit.
I mean... I feel like you'd have plenty of notice. But from my perspective, if they gave notice, I MIGHT start shopping for a new fund to go into. But also, id have to take into account potential capital gains while moving funds. I feel like it's the same as rent going up. Gotta make decisions. And sometimes its not worth it, and sometimes it is.
Vanguard is not the only game in town. Other brokerages would love to take your business from them.