Difference between revisions of "Vanguard 2014 brokerage commission expense"

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{{Main|Mutual funds: additional costs}}
 
{{Main|Mutual funds: additional costs}}
  
The tables below provide Vanguard passive and active fund brokerage expense for 2014, both in absolute dollars and as a "commission ratio" (brokerage commission divided by average net assets). The tables are divided among index and passive tax-managed stock funds and actively managed stock funds. In 2014 passive funds brokerage expense averaged nil (range: nil to .017%), compared to active expense of 0.05% (range .01% to 0.20%).
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The tables below provide Vanguard passive and active fund brokerage expense for 2014, both in absolute dollars and as a "commission ratio" (brokerage commission divided by average net assets). The tables are divided among index and passive tax-managed stock funds and actively managed stock funds. In 2014 passive funds brokerage expense averaged nil (range: nil to .017%), compared to active expense of 0.05% (range .01% to 0.17%).
  
 
{| class="wikitable sortable" border="1"  width=600px
 
{| class="wikitable sortable" border="1"  width=600px
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! scope="col" | '''Commission ratio <br> Pct.'''
 
! scope="col" | '''Commission ratio <br> Pct.'''
 
|- align="center"
 
|- align="center"
| align="left"| Vanguard Capital || $1,506,000 ||0.02%
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| Vanguard Capital Opportunity||$1,091,000 ||0.01%
|- align="center"
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|-align="center"
| align="left"| Vanguard Capital Value|| $1,796,000 ||0.20%
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| Vanguard Capital Value||$1,717,000 ||0.10%
|- align="center"
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|-align="center"
| align="left"| Vanguard Dividend Growth|| $2,340,000 ||0.01%
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| Vanguard Dividend Growth||$2,410,000 ||0.01%
|- align="center"
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|-align="center"
| align="left"| Vanguard Energy|| $4,904,000 ||0.04%
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| Vanguard Energy||$3,392,000 ||0.03%
|- align="center"
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|-align="center"
| align="left"| Vanguard Equity Income|| $2,331,000 ||0.02%
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| Vanguard Equity Income||$1,899,000 ||0.01%
|- align="center"
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|-align="center"
| align="left"| Vanguard Explorer|| $11,776,000 ||0.12%
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| Vanguard Explorer||$11,358,000 ||0.09%
|- align="center"
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|-align="center"
| align="left"| Vanguard Explorer Value|| $168,000 ||0.16%
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| Vanguard Explorer Value||$298,000 ||0.11%
|- align="center"
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|-align="center"
| align="left"| Vanguard Growth & Income|| $912,000 ||0.02%
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| Vanguard Growth & Income||$781,000 ||0.01%
|- align="center"
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|-align="center"
| align="left"| Vanguard Growth Equity || $283,000 ||0.04%
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| Vanguard Health Care||$5,310,000 ||0.01%
|- align="center"
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|-align="center"
|  align="left"|Vanguard Health Care || $1,673,000 ||0.01%
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| Vanguard  Mid Cap Growth||$3,284,000 ||0.11%
|- align="center"
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|-align="center"
| align="left"| Vanguard  Mid Cap Growth|| $3,615,000 ||0.14%
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| Vanguard Morgan Growth||$2,422,000 ||0.02%
|- align="center"
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|-align="center"
| align="left"| Vanguard Morgan Growth|| $2,996,000 ||0.03%
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| Vanguard Precious Metals & Mining||$1,663,000 ||0.07%
|- align="center"
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|-align="center"
| align="left"| Vanguard Precious Metals & Mining|| $2,325,000 ||0.09%
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| Vanguard Primecap Core||$1,408,000 ||0.02%
|- align="center"
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|-align="center"
| align="left"|Vanguard Primecap Core|| $850,000 ||0.02%
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| Vanguard Primecap ||$5,678,000 ||0.01%
|- align="center"
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|-align="center"
| align="left"| Vanguard Primecap || $3,956,000 ||0.01%
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| Vanguard Selected Value||$4,906,000 ||0.06%
|- align="center"
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|-align="center"
| align="left"| Vanguard Selected Value|| $3,665,000 ||0.07%
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| Vanguard Strategic Equity||$478,000 ||0.01%
|- align="center"
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|-align="center"
| align="left"| Vanguard Strategic Equity|| $651,000 ||0.02%
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|  Vanguard Strategic Small Cap||$74,000 ||0.02%
|- align="center"
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|-align="center"
| align="left"|  Vanguard Strategic Small Cap|| $86,000 ||0.03%
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| Vanguard U.S. Growth||$1,175,000 ||0.02%
|- align="center"
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|-align="center"
| align="left"| Vanguard U.S. Growth|| $1,079,000 ||0.03%
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| Vanguard U.S. Value||$51,000 ||0.01%
|- align="center"
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|-align="center"
| align="left"| Vanguard U.S. Value|| $133,000 ||0.02%
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| Vanguard Windsor||$6,516,000 ||0.04%
|- align="center"
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|-align="center"
| align="left"| Vanguard Windsor|| $6,908,000 ||0.05%
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| Vanguard Windsor ll||$14,789,000 ||0.03%
|- align="center"
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|-align="center"
| align="left"| Vanguard Windsor ll|| $14,842,000 ||0.04%
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| Vanguard Emerging Market Select Stock||$457,000 ||0.17%
|- align="center"
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|-align="center"
| align="left"| Vanguard Emerging Market Select || $334,000 ||0.12%
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| Vanguard Global Equity||$2,270,000 ||0.05%
|- align="center"
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|-align="center"
| align="left"| Vanguard Global Equity || $3,031,000 ||0.07%
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| Vanguard Global Minimum Volatility||$200,000 ||0.05%
|- align="center"
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|-align="center"
| align="left"| Vanguard International Explorer|| $2,317,000 ||0.12%
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| Vanguard International Explorer||$2,684,000 ||0.10%
|- align="center"
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|-align="center"
| align="left"| Vanguard International Growth|| $12,048,000 ||0.06%
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| Vanguard International Growth||$9,159,000 ||0.04%
|- align="center"
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|-align="center"
| align="left"| Vanguard International Value|| $6,537,000 ||0.10%
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| Vanguard International Value||$5,822,000 ||0.07%
 
|}
 
|}
  

Revision as of 16:44, 10 May 2015

Mutual funds that buy and sell stock incur brokerage commissions on these transactions. This transactional cost is not included in a fund's expense ratio, but the cost is reported in a fund's annual statement of additional information to the fund prospectus. Additional fund transactions costs, such as spread costs and market impact costs can be much higher than brokerage expense, but these costs are not reported and must be estimated.

Brokerage commission expense

The tables below provide Vanguard passive and active fund brokerage expense for 2014, both in absolute dollars and as a "commission ratio" (brokerage commission divided by average net assets). The tables are divided among index and passive tax-managed stock funds and actively managed stock funds. In 2014 passive funds brokerage expense averaged nil (range: nil to .017%), compared to active expense of 0.05% (range .01% to 0.17%).

Vanguard Fund Brokerage Commission Expense (2014)
Passive Funds [1]
Fund Brokerage commission
$
Commission ratio
Pct.
Vanguard 500 Index $742,000 .000%
Vanguard Dividend Appreciation Index $128,000 .001%
Vanguard Extended Market Index $1,152,000 .003%
Vanguard FTSE Social Index $8,000 .001%
Vanguard Growth Index $265,000 .001%
Vanguard High Yield Dividend Index $78,000 .001%
Vanguard Large-Cap $58,000 .000%
Vanguard Mid-Cap Index $840,000 .002%
Vanguard Mid-Cap Growth Index $68,000 .001%
Vanguard Mid-Cap Value Index $138,000 .002%
Vanguard REIT Index $1,723,000 .004%
Vanguard Small-Cap Index $1,538,000 .003%
Vanguard Small-Cap Growth Index $805,000 .005%
Vanguard Small-Cap Value $410,000 .003%
Vanguard Tax-Managed Capital Appreciation $135,000 .017%
Vanguard Tax-Managed Small-Cap $591,000 .004%
Vanguard Total Stock Market Index $5,671,000 .002%
Vanguard Value Index $169,000 .001%
Vanguard Developed Market Index $1,655,000 .004%
Vanguard Emerging Markets Stock Index $5,370,000 .009%
Vanguard European Stock Index $680,000 .003%
Vanguard FTSE All-World ex-US Index $791,000 .004%
Vanguard FTSE All-World ex-US Small Cap $290,000 .012%
Vanguard Global ex-US Real Estate $331,000 .017%
Vanguard Pacific Stock Index $118,000 .002%
Vanguard Total International Stock Index $9,577,000 .008%
Vanguard Total World Stock Index $233,000 .017%


Vanguard Fund Brokerage Commission Expense (2014)
Active Funds [1]
Fund Brokerage commission
$
Commission ratio
Pct.
Vanguard Capital Opportunity $1,091,000 0.01%
Vanguard Capital Value $1,717,000 0.10%
Vanguard Dividend Growth $2,410,000 0.01%
Vanguard Energy $3,392,000 0.03%
Vanguard Equity Income $1,899,000 0.01%
Vanguard Explorer $11,358,000 0.09%
Vanguard Explorer Value $298,000 0.11%
Vanguard Growth & Income $781,000 0.01%
Vanguard Health Care $5,310,000 0.01%
Vanguard Mid Cap Growth $3,284,000 0.11%
Vanguard Morgan Growth $2,422,000 0.02%
Vanguard Precious Metals & Mining $1,663,000 0.07%
Vanguard Primecap Core $1,408,000 0.02%
Vanguard Primecap $5,678,000 0.01%
Vanguard Selected Value $4,906,000 0.06%
Vanguard Strategic Equity $478,000 0.01%
Vanguard Strategic Small Cap $74,000 0.02%
Vanguard U.S. Growth $1,175,000 0.02%
Vanguard U.S. Value $51,000 0.01%
Vanguard Windsor $6,516,000 0.04%
Vanguard Windsor ll $14,789,000 0.03%
Vanguard Emerging Market Select Stock $457,000 0.17%
Vanguard Global Equity $2,270,000 0.05%
Vanguard Global Minimum Volatility $200,000 0.05%
Vanguard International Explorer $2,684,000 0.10%
Vanguard International Growth $9,159,000 0.04%
Vanguard International Value $5,822,000 0.07%

Balanced funds and fund of funds

Balanced mutual funds which buy and sell individual stocks pay brokerage commissions on the stock portion of the portfolio. A fund of funds does not ordinarily pay brokerage commissions on its buys and sells of the underlying mutual fund portfolios; but a fund of funds does incur brokerage expense for its purchases or sales of an ETF. Balanced fund commission expense in 2014 was very low (ranging from nil to .012%). Keep in mind that a fund of funds will also bear the commission brokerage costs of the underlying portfolios.

Vanguard balanced fund of funds include the series of Lifestrategy funds; the series of target retirement funds; the of Managed Payout fund; and the STAR fund. The majority of Vanguard balanced funds are indexed, or mostly indexed. Active balanced funds include the STAR, Wellesley, and Wellington funds.


Vanguard Fund Brokerage Commission Expense (2014)
Balanced Funds [1]
Fund Brokerage commission
$
Commission ratio
Pct.
Vanguard Balanced Index $230,000 .001%
Vanguard LifeStrategy Conservative $0 .000%
Vanguard LifeStrategy Growth $0 .000%
Vanguard LifeStrategy Income $0 .000%
Vanguard LifeStrategy Moderate $0 .000%
Vanguard Managed Payout Fund $68,000 .005%
Vanguard STAR $0 .000%
Vanguard Target Retirement 2010 $0 .000%
Vanguard Target Retirement 2015 $0 .000%
Vanguard Target Retirement 2020 $0 .000%
Vanguard Target Retirement 2025 $0 .000%
Vanguard Target Retirement 2030 $0 .000%
Vanguard Target Retirement 2035 $0 .000%
Vanguard Target Retirement 2040 $0 .000%
Vanguard Target Retirement 2045 $0 .000%
Vanguard Target Retirement 2050 $0 .000%
Vanguard Target Retirement 2055 $0 .000%
Vanguard Target Retirement 2060 $0 .000%
Vanguard Target Retirement Income $0 .000%
Vanguard Tax- Managed Balanced $14,000 .001%
Vanguard Wellesley $2,742,000 .007%
Vanguard Wellington $10,139,000 .012%

Factors determining brokerage expense

Vanguard provides notes in the statement of additional information that attribute reasons behind higher and lower levels of brokerage expense for a given fund[/s]. Factors can include:

  • An increase or decrease in fund turnover;
  • An increase in shareholder flows into or out of the portfolio;
  • An increase or decrease in market volatility.

A new fund, with low net assets, will often have a higher than average "commission ratio" than similar funds with higher asset bases.

Data spreadsheets

Multiple year brokerage expense data is available in the spreadsheet tables below.

Passive table

(View Google Spreadsheet in browser, then File --> Download as to download the file.)

Note: If the spreadsheet is blank, select a different sheet, then back to that sheet. The image will be refreshed.

Active table

(View Google Spreadsheet in browser, then File --> Download as to download the file.)

Note: If the spreadsheet is blank, select a different sheet, then back to that sheet. The image will be refreshed.

Balanced table

(View Google Spreadsheet in browser, then File --> Download as to download the file.)

Note: If the spreadsheet is blank, select a different sheet, then back to that sheet. The image will be refreshed.

See also

References

  1. 1.0 1.1 1.2 Data sources: EDGAR, commission data from statements of additional information forms 485BPOS; average net asset data from forms NSAR.