Vanguard cuts costs on emerging market and bond trackers

Vanguard has moved to reduce prices on its emerging market and global bond trackers as price competition in the passive space heats up.

The change affects two funds available to UK retail investors, as well as a range of institutional trackers. The retail trackers affected are the Vanguard Emerging Markets Stock index funds, which will see its TER drop from 0.55% to 0.4%, and the Vanguard Global Bond index tracker, whose TER will drop from 0.25% to 0.2%. The two funds currently have nearly £5bn in assets under management, so the change will benefit a large number of investors. In a letter to shareholders seen by Investment Week, Vanguard said: "As we continue to establish our presence in the European market, we are...