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Vanguard has made a significant move by lowering the fees on 168 share classes across 87 mutual funds and exchange-traded funds (ETFs).

This decision is expected to save investors an impressive $350 million in 2025, making Vanguard one of the most affordable investment firms in the industry. The fee reductions are the largest in the company's history, reinforcing its commitment to offering cost-effective investment options.

The fee cuts apply to both actively managed and index-based funds, covering a variety of assets, including stocks, bonds, and commodities. Some notable reductions include the Russell 1000 Value ETF and the International High Dividend Yield ETF.

The average fee reduction across all share classes is about 20%, signaling Vanguard's focus on reducing costs for investors.

Salim Ramji, Vanguard's CEO, expressed that these cuts are in line with the company's mission to create value for its investors, allowing them to keep more of their returns over time. Vanguard's proactive approach to lowering fees helps investors save money and grow their investments.

These reductions highlight Vanguard's longstanding leadership in the asset management industry.

The company has consistently focused on offering low-cost investment products, and these latest cuts demonstrate its continued efforts to stay ahead of the competition.

Vanguard's actively managed fixed income funds, for example, have an average expense ratio of just 0.10%, far lower than the industry average of 0.53%, CNBC said.

According to USA Today, the company's total global assets under management amount to $10.1 trillion, making it one of the largest asset management firms in the world.

The fee cuts come after Vanguard's recent settlement with the Securities and Exchange Commission over retirement product disclosures, but the company remains focused on benefiting investors through lower costs.

This move reflects a broader trend in the industry, as firms like Vanguard and BlackRock reduce their fees to compete and provide better value to customers.

As Vanguard continues to lower its fees, investors can expect further savings and a stronger focus on making investing more accessible and affordable.