| Vanguard
Releases Expense Ratios for Admiral Shares
By John Spence
October 20, 2000 |
|
On Tuesday, 10/17/2000, the Vanguard Group announced
the expense ratios for its new class of Admiral Shares to be released
in November. Initially, Vanguard will offer Admiral Shares on
seven of its domestic index funds, and has plans to offer Admiral
Shares for most of Vanguard's equity, balanced, and bond funds
throughout 2001.
The table below lists current expense ratios of
Investor Shares and Admiral Shares for the seven Vanguard index
funds that will offer Admiral Shares.
| Fund Name |
Admiral Shares ER |
Investor Shares ER* |
| Vanguard 500 Index Fund |
0.12% |
0.18% |
| Vanguard Total Stock Market Index Fund |
0.15% |
0.20% |
| Vanguard Balanced Index Fund |
0.15% |
0.22% |
| Vanguard Growth Index Fund |
0.17% |
0.22% |
| Vanguard Value Index Fund |
0.17% |
0.22% |
| Vanguard SmallCap Index Fund |
0.20% |
0.27% |
| Vanguard Extended Market Index Fund |
0.20% |
0.25% |
*Based on the 2000 expense ratio for Investor
Shares as reported in the funds' semiannual report - June 30, 2000 (Source:
The Vanguard Group)
The expense ratios for the Investor Shares of the
seven index funds listed above will remain unchanged from the
expense rations as reported 6/30/2000. However, Vanguard did say
that the expense ratios for Investor Shares of other funds may
rise one to three basis points when Admiral Shares are introduced
for that fund.
The criteria for retail shareholders (regular and
IRA) that are eligible for Admiral shares are as follows:
- The shareholder's fund account has a balance of $250,000
or more.
- The shareholder established the fund account at least three
years ago and has a balance of $150,000 or more, and is registered
for online account access with Vanguard.com.
- The shareholder established the fund account at least ten
years ago and has a balance of $50,000 or more, and is registered
for online account access with Vanguard.com.
In a press release issued on Wednesday, Vanguard said Admiral
Shares "are designed to deliver to large and long-tenured
shareholders the cost savings that they generate."
