Vanguard Review: The Cost Cuts Keep Compounding
Vanguard's average ETF expense ratio is 0.04%. The industry average is 0.23%. That gap — 83% lower — translates to $250 million in annual savings returned to investors through the firm's 2026 expense ratio reductions alone. Those aren't marketing numbers. Vanguard's investor-owned structure means the company literally has no outside shareholders to pay. When costs drop, the savings flow directly to fund holders. It's the structural advantage that Jack Bogle built in 1975, and 50 million investors later, it still works. But Vanguard in 2026 isn't just cheap index funds anymore. The firm now offers fractional ETF shares, a boosted 3.35% APY on cash through April 2026, FDIC coverage up to $1.25 million, and expanded advisory services. The question isn't whether Vanguard is the cheapest — it is. The question is whether the platform improvements have caught up to the competition.