Vanguard cuts FTSE All-World UCITS ETF OCF to 0.14%

Vanguard lowered the Ongoing Charges Figure (OCF) on its Vanguard FTSE All-World UCITS ETF from 0.19% to 0.14%, effective immediately. The firm estimates the reduction will save investors about USD37 million a year.

The change applies to the ETF listed for European investors. Vanguard said the fund has attracted more than USD16 billion in net inflows so far this year and holds nearly USD75 billion in assets under management.

The ETF provides exposure to roughly 4,000 large- and mid-cap companies across developed and emerging markets. The OCF measures a fund’s annual operating expenses, including management fees and other running costs, expressed as a percentage of assets; a lower OCF reduces the annual cost charged to holders of the ETF.

Vanguard said the latest cut follows several fee reductions across its product range over the past 24 months. The firm estimates total investor savings from those cuts now exceed USD80 million. After the change, Vanguard’s average asset-weighted expense ratio across its European equity and fixed income ETF range will be 0.11%.

Jon Cleborne, Head of Europe at Vanguard, commented: “Investing through a globally diversified, low-cost and highly liquid single-ETF portfolio has become more attractive. The fee reduction reflects Vanguard’s longstanding commitment to use scale to lower costs and improve outcomes for investors.”