Vanguard Index Funds’ Fees Are Going Even Lower

Owners of Vanguard index funds’ Investor class shares to be moved into Admiral class

Like the Hundred Years’ War between England and France some six centuries ago, the fee war between fund firm giants Fidelity and Vanguard is more about ongoing skirmishes than a single, conclusive battle. The latest salvo comes from Vanguard.

Changes announced today by the Malvern, Pennsylvania-based fund behemoth will save money for investors via two steps. First, Vanguard lowered the investment minimum for its Admiral share class index mutual funds – about 38 portfolios – from $10,000 to $3,000. As part of the move, investors holding the Investor share class, which required a $3,000 minimum to buy shares for the first time, will be moved into the Admiral share class. New buyers are being directed away from Investor class shares and toward Admiral class shares.

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Nellie S. Huang
Senior Associate Editor, Kiplinger's Personal Finance

Nellie joined Kiplinger in August 2011 after a seven-year stint in Hong Kong. There, she worked for the Wall Street Journal Asia, where as lifestyle editor, she launched and edited Scene Asia, an online guide to food, wine, entertainment and the arts in Asia. Prior to that, she was an editor at Weekend Journal, the Friday lifestyle section of the Wall Street Journal Asia. Kiplinger isn't Nellie's first foray into personal finance: She has also worked at SmartMoney (rising from fact-checker to senior writer), and she was a senior editor at Money.