![]() Vanguard New Jersey Long-Term Tax-Exempt Fund Investor (VNJTX) and Admiral (VNJUX) shares declined one and three basis points to 0.19% and 0.09%, respectively.Vanguard Massachusetts Tax-Exempt Fund (VMATX) declined one basis point to 0.15%.Vanguard California Long-Term Tax-Exempt Fund Investor (VCITX) and Admiral (VCLAX) shares declined one and three basis points to 0.19% and 0.09%, respectively.Vanguard California Intermediate-Term Tax-Exempt Fund Investor (VCAIX) and Admiral (VCADX) shares declined one and three basis points to 0.19% and 0.09%, respectively.Seven actively managed state municipal bond funds are reporting lower expenses for an estimated cumulative savings of more than $7 million 1: Unlike competitors, Vanguard announces expense ratios changes on a scheduled basis across asset classes (stock, bond, balanced, and money market funds), across product types (traditional funds and ETFs), and across investment strategies (active and index). Over 30 years, a 1% higher savings rate results in $65,000 in additional assets, compared to the $700 savings stemming from a 1 basis point difference in expense ratios (assuming an investor has a starting salary of $100,000, an investment growth rate of 5%, and a salary increase of 1% annually). For example, increasing one’s savings rate by 1% has a far more profound impact than paying 1 basis point less in fees. Investor outcomes are particularly sensitive to savings rates, especially over the long term. However, we remind investors there are other considerations in selecting a fund and an investment provider as well as other factors that strongly influence outcomes.” “Low fees are the starting point – the first filter in selecting investments. “We’re pleased to continue lowering the cost of investing for our clients, as low costs are absolutely critical to long-term investment success,” said Vanguard CEO Bill McNabb. ![]() 1 To date, Vanguard has reported an estimated $165 million in cumulative savings based on total assets across 139 index and actively managed fund and ETF shares. As a result, investors saved an estimated $23 million based on total assets across the funds in this round of expense ratio changes. VALLEY FORGE, PA (March 28, 2017)- In the fourth of six planned announcements, Vanguard reported lower expense ratios today for 15 mutual fund shares, including the industry’s largest balanced fund.
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