Vanguard is beginning to remove fee-waivers/ER-caps for m-mkt funds that had been in place during the ZIRP. Investors may notice the changes as most are watching rates very closely. Affected are "...Vanguard Municipal Money Market (ticker: VMSXX), Vanguard Federal Money Market Fund (VMFXX), and Vanguard Cash Reserves Federal Money Market (VMRXX)....Vanguard hasn’t announced it was reducing the fee waivers, which arguably reflect a return to a more normal state of affairs now that rates are no longer near zero....".
Other m-mkt funds are expected to do the same.
By
@LewisBrahamhttps://www.barrons.com/articles/vanguard-money-market-fund-fee-waivers-51675291662?mod=bol-social-tw
Comments
2018 0.11%
2019 0.11%
2020 0.11%
2021 0.09%
2022 0.09%
Now 0.11% (see the screen shot from today)
So, the waiver was 2 bps that doesn't seem large but can be substantial on $220+ billions ($40+ million). For VG investors, this isn't a big deal. But it may be a bigger issue for other m-mkt funds that have typical ERs of 0.35-0.50%. Those m-mkt funds were being operated at substantial losses during the ZIRP, and many were shut or merged.
https://i.ibb.co/wSm6hrD/Screenshot-2023-02-02-18-11-45.png
2018 0.42%
2019 0.42%
2020 0.42%
2021 0.15%
2022 0.10%
Now 0.42%
I'm able to access Barron's and Wall Street Journal articles online using Proquest.
Let me add : "
Account Service Fee Per Year
(for certain fund account balances below $1,000,000)
$20"
https://www.schwabassetmanagement.com/products/swvxx
https://investor.vanguard.com/client-benefits/account-fees
Though Vanguard still charges non-Flagship customers for paper statements.