Vanguard Ratchets Down ETF Fees, Offering Cheapest Bond Fund

Firm lowers fees on BND, VOO and VTI, according to filings
Move is latest escalation of price war among U.S. ETF issuers

An American flag is reflected in the window of a building near the New York Stock Exchange.Photographer: John Taggart/Bloomberg

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By Annie Massa

March 1, 2019 at 4:14 PM UTC

This article is for subscribers only.

Vanguard Group, the second-largest issuer of exchange-traded funds, escalated an industry price competition by lowering fees on three of its popular products.

The asset manager will reduce fees on its Vanguard Total Bond Market ETF, making it the cheapest U.S. bond fund, according to regulatory filings. The firm also plans to cut costs on the Vanguard S&P 500 ETF, dropping them below offerings by BlackRock Inc. and State Street Corp. that track the same index. And the company is pushing down fees on its Vanguard Total Stock Market ETF.