Can you find cheaper options elsewhere? Vanguard has reduced fees on six equity ETFs

Although the investment platform is well-known for its inexpensive funds, it is still worthwhile to compare them because some comparable products have lower fees

From October 7th, Vanguard will reduce fees on six of its core equity ETFs. This is good news for current investors, but before choosing a fund, it's a good idea to compare prices to see if you can find a better deal elsewhere.

Across global, North American, European, Japanese, and emerging market stocks, six funds are affected by the fee reductions. Vanguard also reduced fees for seven of its fixed income ETFs earlier this year.

"This latest round of equity fund fee cuts will help investors keep more of their returns," Vanguard Europe CEO Jon Cleborne stated. "Our continuous goal is to make investing easier and less complicated so that investors can profit rather than lose money.

According to Cleborne, the fee adjustments made today could result in a total savings of £18.5 million for investors. In spite of this, it is still worthwhile to conduct a market analysis to determine how the new fees stack up against rivals. We have accomplished that.

Are there cheaper funds available elsewhere?

The Financial Times cites Morningstar data that shows the average asset-weighted cost of an equity ETF in Europe is 0.2 percent.

It should come as no surprise that nearly all of the new fees Vanguard announced today are less expensive than this, considering the provider is renowned for its inexpensive funds.

In spite of this, a brief online comparison exercise reveals that some rivals provide comparable funds at a comparable (or cheaper) price point, which might be worthwhile to investigate.

International ETFs.

It's worthwhile to compare Vanguard's FTSE All-World ETF with HSBC's rival offering if you're considering investing in it.

Depending on whether you choose the hedged or unhedged share class, the Vanguard fund's ongoing charge figure (OCF) is either 0.81% or 0.24%. HSBC levies a fee of 0.13%.

ETFs used in emerging markets.

People who are thinking about investing in the Vanguard FTSE Emerging Markets UCITS ETF might want to check out Franklin Templeton's comparable offering. With a reduced recurring fee of 0.11%, it tracks the same index.

Additionally, Vanguard provides an ESG option that might be a wise choice. Our brief search did not turn up any less expensive options.

US ETFs.

It is challenging to locate an ETF that tracks the FTSE North America index outside of Vanguard's fund, but investors may want to look at another US benchmark based on their particular needs.

Another well-known example is the SandP 500.

Although there is some overlap, the S&P 500 only tracks large-cap stocks, while the FTSE North America tracks both large and mid-cap stocks. Currently, the top ten holdings in both indices are nearly the same.

Vanguard provides an S&P 500 tracker, the S&P 500 UCITS ETF, with a marginally lower fee of 0.07%. For the same product, Invesco charges 0.05 percent.

ETFs for a single country.

Vanguards German ETF appears to be a rather distinctive product with few direct rivals. The fee is minimal at 0.07%.

BlackRock provides a large-cap German ETF for comparison, which is more costly at 016 percent than Vanguard's fund, which offers all-cap exposure.

Vanguards Japanese ETF is also a cheap choice, but Franklin Templeton's comparable product is marginally less expensive at 0.09 percent (unhedged) than Vanguard's 0.10 percent.

The cost of funds is not everything.

It's important for investors to keep in mind that fund fees aren't the only factor to take into account when making an investment. Additionally crucial are platform fees, investment selection, and customer support.

Another consideration is the amount of money you have invested, especially when comparing platform fees and determining whether a flat or percentage fee provides better value.

Previously charging only 0 to 15 percent annually, Vanguard warned small investors that its service "may no longer be right" for them in February after imposing a minimum monthly platform fee of 4.

The modifications affect people who have less than £32,000 in their general investment account, SIPP, or ISA.

Because of this, an individual with £1,000 in their account will now pay 48 percent in account fees annually, instead of the previous 1 percent, or 4 percent. The change was deemed "necessary to help cover the rising cost of serving our clients" by the software.

For those who invest through Vanguard's managed service offering and those who have more money in their account, the platform may still be a good deal because they both pay 0 to 15 percent annually.

It is important to remember that you can access Vanguard's funds without investing through its platform. Many of the funds that we have discussed today are accessible through various providers.