New Vanguard Account Fees Will Increase Costs for Some of Its Most Loyal Customers

August 30, 2022

Lately, some of Vanguard’s most loyal long-term investors have been getting letters and emails that state: “If you choose to remain on the mutual fund-only platform after September 30, 2022, you’ll be charged a $20 annual account service fee for each fund account to offset the costs and complexity of maintaining this system.”

After decades of supporting two investment platforms—its brokerage and its legacy one just for in-house mutual funds—Vanguard is putting pressure on retail investors to leave the legacy one and join the brokerage. Any investor with less than $1 million in the mutual-fund-only platform will pay $20 annually per fund that they own. Prior to this shift, fees were only applied to investors with less than $10,000.

New Vanguard Account Fees Will Raise Costs for Some of Its Most Loyal Customers | Barron's (barrons.com)