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Vanguard eliminates fee from international fund

July 25, 2014

As part of our ongoing efforts to reduce the cost of investing, we're eliminating transaction fees on Investor Shares of Vanguard FTSE All-World ex-US Small-Cap Index Fund. The fund previously charged 0.25% for all purchases and redemptions, reduced from 0.50% in October 2013.

Purchase and redemption fees cover the expenses associated with buying or selling securities, including brokerage commissions and market impact costs, and they're separate from a fund's expense ratio. Because they're assessed only to investors who are buying and redeeming shares, the fees protect a fund's long-term shareholders.

"Vanguard is continually seeking to bring greater value to our investors," said Vanguard CEO Bill McNabb. "When appropriate, eliminating transaction fees is a tangible benefit of investing with a client-owned company."

The increase in net assets and transaction activity for Vanguard FTSE All-World ex-US Small-Cap Index Fund allows us to offset share purchases with redemptions. The resulting lower portfolio trading costs have eliminated the need for the fund to assess the transaction fees.

Purchase and redemption fees don't apply to ETF Shares of Vanguard funds.


  • All investing is subject to risk, including the possible loss of the money you invest.
  • Prices of mid- and small-cap stocks often fluctuate more than those of large-company stocks.
  • Investments in stocks or bonds issued by non-U.S. companies are subject to risks including country/regional risk and currency risk. These risks are especially high in emerging markets.
  • Vanguard ETF Shares are not redeemable with the issuing Fund other than in Creation Unit aggregations. Instead, investors must buy or sell Vanguard ETF Shares in the secondary market with the assistance of a stockbroker. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.
  • All rights in the FTSE All-World ex-US Small-Cap Index (the "Index") vest in FTSE International Limited ("FTSE"). "FTSE®" is a trademark of London Stock Exchange Group companies and is used by FTSE under license. The Vanguard FTSE All-World ex-US Small-Cap Index Fund (the "Product") has been developed solely by Vanguard. The Index is calculated by FTSE or its agent. FTSE and its licensors are not connected to and do not sponsor, advise, recommend, endorse or promote the Product and do not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the Index or (b) investment in or operation of the Product. FTSE makes no claim, prediction, warranty or representation either as to the results to be obtained from the Product or the suitability of the Index for the purpose to which it is being put by Vanguard.
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