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Vanguard - small-business plans - see why costs matter

See why costs matter


Are you paying too much for your mutual funds?

Costs matter. They eat into your mutual fund's returns before you earn a penny. On average, other mutual funds are five times more expensive than Vanguard's. Our average annual fund expenses (the expense ratio) are 0.19%, compared with the industry average of 1.08%.*

A striking cost advantage

"If there's anything in the whole world of mutual funds that you can take to the bank, it's that expense ratios help you make a better decision."

"In every single time period and data point tested, low-cost funds beat high-cost funds." 

—Morningstar study**

Do you know why costs matter?
No one can predict the market, but the study by Morningstar, the independent research firm, concluded that expense ratios were the most dependable predictor of performance.

Read the Morningstar article »

Compare your fund costs per year

A hypothetical illustration

This hypothetical illustration does not represent any particular investment. The potential savings that could be obtained are based on our average fund expenses. Actual savings will vary by fund, depending on the fund's expense ratio.

At-cost investing
At Vanguard, you keep more of what you earn because we manage our funds at cost—they cost you what they cost us to run them.

How Vanguard keeps your costs low

No sales loads

No 12b-1 distribution or marketing fees

No commissions

No account service fees†

All investments are subject to risk.

The expense ratio is a mutual fund's operating expenses expressed as a percentage of average net assets. The expense ratio includes management, administrative, marketing, and distribution fees. It is calculated annually and directly reduces the fund's returns to shareholders.


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Related topics

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*Sources: Vanguard and Lipper, a Thomson Reuters Company, as of December 31, 2013.

** The Morningstar study covered expense ratios from 2005 through 2008 and then tracked the funds' progress through March 2010. Total returns were measured as of the end of March 2010 for mutual funds that survived the study period. The study found that in every asset class over every time period, funds in the cheapest quintile produced higher total returns than those in the most expensive quintile.

† No fees if you sign up to receive statements and other important documents electronically or if you’re a Voyager, Voyager Select, or Flagship client. Otherwise, a $20 fee applies to each fund in an account with a balance of less than $10,000.



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