Vanguard today announced fee reductions across seven of its fixed income Exchange Traded Funds (ETFs) available to European investors, effective 1 July 2025. This move reinforces Vanguard’s commitment to making fixed income investing more accessible, particularly as bonds continue to play an increasingly important role in an investor’s portfolio.
Jon Cleborne, Head of Vanguard for Europe, commented: “The bond market is now twice the size of the equity market, yet remains opaque and expensive. Investors deserve better. At Vanguard, we believe that in investing, you get what you don’t pay for. Costs matter. By reducing fees, we’re helping make fixed income more accessible and transparent. We estimate these changes will save investors approximately USD 3.5 million annually[1]. We have already and will continue to expand our fixed income offering throughout this year.”
The following ETFs will have their fees reduced on 1 July: [2]
| Product | Share class | Previous OCF | New OCF[3] |
| Vanguard Global Aggregate Bond UCITS ETF | Hedged | 0.10% | 0.08% |
| Vanguard USD Treasury Bond UCITS ETF | Unhedged | 0.07% | 0.05% |
| Hedged | 0.12% | 0.10% | |
| Vanguard U.K. Gilt UCITS ETF | Unhedged | 0.07% | 0.05% |
| Hedged | 0.12% | 0.10% | |
| Vanguard USD Emerging Markets Government Bond UCITS ETF | Unhedged | 0.25% | 0.23% |
| Hedged | 0.30% | 0.28% | |
| Vanguard EUR Corporate Bond UCITS ETF | Unhedged | 0.09% | 0.07% |
| Hedged | 0.14% | 0.12% | |
| Vanguard ESG EUR Corporate Bond UCITS ETF | Unhedged | 0.11% | 0.09% |
| Hedged | 0.16% | 0.14% | |
| Vanguard USD Corporate Bond UCITS ETF | Unhedged | 0.09% | 0.07% |
| Hedged | 0.14% | 0.12% |
Vanguard’s Fixed Income Leadership
Vanguard is the world’s second-largest asset manager, overseeing USD 10.5 trillion in assets globally as of 31 May 2025. Its Fixed Income Group, led by Sara Devereux, manages over USD 2.47 trillion[4] globally, leveraging deep expertise to deliver precise benchmark tracking, prudent risk management, and competitive performance.
Earlier this year, Vanguard expanded its European fixed income offering with the launch of:
· Vanguard EUR Eurozone Government 1–3 Year Bond UCITS ETF
· Vanguard EUR Corporate 1–3 Year Bond UCITS ETF
· Vanguard Global Government Bond UCITS ETF
· Vanguard U.K. Short-Term Gilt Index Fund.
Following these changes, the average asset-weighted expense ratio across Vanguard’s European fixed income index and actively managed fund range will be 0.11%. Vanguard now offers 35[5] fixed income index products in Europe.[6] Vanguard offers the lowest cost fixed income ETF range on average in Europe[7]. Across its overall European product offering, Vanguard’s asset-weighed expense ratio will have an average of 0.14%[8].
