Vanguard Asset Management has said it will lower the ongoing charges on a total of 25 funds including bringing prices on one as low as 0.07 per cent.
The move puts it in direct competition with Fidelity, which earlier this year launched a range of tracker funds including a UK fund with charges of 0.07 per cent, if purchased through Fidelity.
The ongoing charges for Vanguard’s sterling share class index mutual funds will be between 0.08 per cent and 0.38 per cent, while the charges for its exchange traded funds are set to range from 0.07 per cent to 0.29 per cent.
Vanguard said its S&P 500 UCITS ETF would have the 0.07 per cent charge down from 0.09 per cent whle the FTSE 100 UCITS ETF had fallen from 0.10 per cent to 0.09 per cent.
It has revealed that the entire LifeStrategy fund range, which comprises five target-weighted portfolios with different levels of risk and return, will have ongoing charges reduced to 0.24 per cent.
Tom Rampulla, managing director for Vanguard in Europe, called the fee reductions “business as usual” for Vanguard.
He added: “As we broaden our presence in Europe, we will leverage operating efficiencies and use our increasing global scale to keep costs to a minimum for investors.
“Importantly, existing investors will automatically benefit from the new charges, as they always do when we lower the cost of our funds.”
