- Effective 1 July 2025, Vanguard is reducing fees across our fixed income ETF range, spanning 26 share classes1.
- Vanguard is committed to making fixed income more accessible – and reducing the fees on our ETFs means investors will keep more of their returns.
- We continue to see fixed income as a key component of investor portfolios, given the positive outlook for bonds and their role as a buffer against volatility.
You get what you don’t pay for
Vanguard is lowering the cost of investing for European investors. Effective 1 July 2025, we are reducing fees across seven of our fixed income UCITS ETFs, spanning 26 share classes. The fee cuts will result in some of the lowest-cost ETFs tracking core fixed income exposures such as global bonds, US Treasuries, gilts, emerging market government bonds and euro- and US dollar-denominated corporate bonds, including hedged share classes.
In investing, you get what you don’t pay for. Lower costs leave more money in investors’ funds and raise their potential returns. Indeed, across the industry, lower-cost funds have historically outperformed higher-cost funds on a net-of-expenses basis2.
Vanguard’s mission is to take a stand for all investors, to treat them fairly and to give them the best chance for investment success. With these fee reductions, we take our mission one step further. We expect the cuts to save investors approximately USD 3.5 million annually3. Vanguard offers the lowest-cost fixed income ETF range on average in Europe4.
The following ETFs will have their fees reduced on 1 July:
| Share class | Previous OCF5 | New OCF | |
| 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% |
| 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% |
The enduring role of fixed income
Vanguard remains committed to making fixed income more accessible to investors. Our research suggests a supportive backdrop for bonds in the coming years, and we expect fixed income to play an increasingly important role in investor portfolios.
Bonds are notable for their ability to act as a portfolio buffer when volatility strikes. Fixed income exposures generally exhibit lower volatility than equities, and hedged global bonds in particular have consistently stood out as effective shock absorbers. We believe this role as a portfolio buffer will continue to serve investors well during periods of heightened turbulence.
As a further reflection of Vanguard’s focus on bonds as key portfolio building blocks, earlier this year we launched new ETFs offering investors exposure to euro-denominated government and corporate bonds and global government bonds.
In May 2025, Vanguard celebrated its 50th anniversary – and fixed income represents a meaningful part of our heritage. As a global leader in fixed income, Vanguard’s Fixed Income Group (which launched in 1981) manages more than USD 2.476 trillion globally, leveraging deep expertise to deliver precise benchmark tracking, prudent risk management and competitive performance.
1Note: Not all share classes are available in all countries.
2See, for example, Considerations for index fund investing, Vanguard, 2024.
3Source: Vanguard calculations, as at 23 June 2025. The calculation is based on the impact of the OCF reductions based on current AUM levels and would apply to any investors who are invested in the affected UCITS ETFs.
4Source: Morningstar data, as at 23 June 2025.
5The ongoing charges figure (OCF) covers management fees and service costs such as administration, audit, depositary, legal, registration and regulatory expenses incurred in respect of the funds.
6Source: Vanguard, as at 23 June 2025.
Investment risk information
The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.
Some funds invest in emerging markets which can be more volatile than more established markets. As a result the value of your investment may rise or fall.
ETF shares can be bought or sold only through a broker. Investing in ETFs entails stockbroker commission and a bid-offer spread which should be considered fully before investing.
Funds investing in fixed interest securities carry the risk of default on repayment and erosion of the capital value of your investment and the level of income may fluctuate. Movements in interest rates are likely to affect the capital value of fixed interest securities. Corporate bonds may provide higher yields but as such may carry greater credit risk increasing the risk of default on repayment and erosion of the capital value of your investment. The level of income may fluctuate and movements in interest rates are likely to affect the capital value of bonds.
The Funds may use derivatives in order to reduce risk or cost and/or generate extra income or growth. The use of derivatives could increase or reduce exposure to underlying assets and result in greater fluctuations of the Fund's net asset value. A derivative is a financial contract whose value is based on the value of a financial asset (such as a share, bond, or currency) or a market index.
Some funds invest in securities which are denominated in different currencies. Movements in currency exchange rates can affect the return of investments.
For further information on risks please see the “Risk Factors” section of the prospectus on our website.
Important information
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This is directed at professional investors and should not be distributed to or relied upon by, retail investors.
The information contained herein is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. The information is general in nature and does not constitute legal, tax, or investment advice. Potential investors are urged to consult their professional advisers on the implications of making an investment in, holding or disposing of shares and /or units of, and the receipt of distribution from any investment.
Vanguard Funds plc has been authorised by the Central Bank of Ireland as a UCITS and has been registered for public distribution in certain EEA countries and the UK. Prospective investors are referred to the Funds' prospectus for further information. Prospective investors are also urged to consult their own professional advisers on the implications of making an investment in, and holding or disposing shares of the Funds and the receipt of distributions with respect to such shares under the law of the countries in which they are liable to taxation.
The Manager of Vanguard Funds plc is Vanguard Group (Ireland) Limited. Vanguard Asset Management, Limited is a distributor for Vanguard Funds plc.
The Manager of the Ireland domiciled funds may determine to terminate any arrangements made for marketing the shares in one or more jurisdictions in accordance with the UCITS Directive, as may be amended from time-to-time.
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For investors in Ireland domiciled funds, see our summary of investor rights and is available in English, German, French, Spanish, Dutch and Italian.
The Central Bank of Ireland has granted authorisation for the Vanguard U.K. Gilt UCITS ETF to invest up to 100% of net assets in different Transferable Securities and Money Market Instruments issued or guaranteed by any EU Member State, its local authorities, non-EU Member States or public international bodies of which one or more EU Member States are members. The Vanguard U.K. Gilt UCITS ETF invests more than 35% of its scheme property in transferable securities and money market instruments issued or guaranteed by the UK.
The Central Bank of Ireland has granted authorisation for the Vanguard USD Treasury Bond UCITS ETF to invest up to 100% of net assets in different Transferable Securities and Money Market Instruments issued or guaranteed by any EU Member State, its local authorities, non-EU Member States or public international bodies of which one or more EU Member States are members. The Vanguard USD Treasury Bond UCITS ETF invests more than 35% of its scheme property in transferable securities and money market instruments issued or guaranteed by the US.
For Dutch investors only: The fund(s) referred to herein are listed in the AFM register as defined in section 1:107 Dutch Financial Supervision Act (Wet op het financieel toezicht).For details of the Risk indicator for each fund listed, please see the fact sheet(s).
Issued in EEA by Vanguard Group (Ireland) Limited which is regulated in Ireland by the Central Bank of Ireland.
Issued by Vanguard Asset Management, Limited which is authorised and regulated in the UK by the Financial Conduct Authority.
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© 2025 Vanguard Asset Management, Limited. All rights reserved.