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)[/:Author:]
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."
Index Fund Advisors, Inc. (IFA) is a fee-only advisory and wealth management firm that provides risk-appropriate, returns-optimized,
globally-diversified and tax-managed investment strategies with a fiduciary standard of care.
Founded in 1999, IFA is a Registered Investment Adviser with the U.S. Securities and Exchange Commission that provides investment
advice to individuals, trusts, corporations, non-profits, and public and private institutions. Based in Irvine, California, IFA manages
individual and institutional accounts, including IRA, 401(k), 403(b), profit sharing, pensions, endowments and all other investment accounts.
IFA also facilitates IRA rollovers from 401(k)s and 403(b)s.
To find out more about the value of IFA
click here.
To determine your risk capacity, take the Risk Capacity Survey.