What is a good expense ratio for Vanguard? The average Vanguard expense ratio is 82% less than the industry average. (Vanguard average expense ratio: 0.09%. Industry average expense ratio: 0.49%. All averages are asset-weighted.
How does Vanguard expense ratio work? How expense ratios are calculated at Vanguard. As each fund passes its fiscal year-end, the annual expense ratio is calculated by dividing the fund’s operational expenses by its average net assets. If the fund’s assets are increasing faster than its costs, you’ll enjoy lower expenses as a fund shareholder.
Do ESG funds have higher expense ratios? However, even passive ESG funds often charge higher expense ratios than their non-ESG counterparts.
Is a 0.10 expense ratio good? High and Low Ratios
A number of factors determine whether an expense ratio is considered high or low. A good expense ratio, from the investor’s viewpoint, is around 0.5% to 0.75% for an actively managed portfolio. An expense ratio greater than 1.5% is considered high.