Vanguard comes through with ultra-cheap trackers

Low cost trackers should be great deal for UK investors.

Christopher J. Traulsen, CFA 17 June, 2009 | 10:51AM
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Back in February, we wrote about Vanguard's plans to launch trackers into the UK market. We were highly encouraged given our experience with Vanguard as the low-cost leader in the States, but reserved judgement until seeing the fees on its offerings here. The funds and fees have just been announced (they will be available starting 23 June), and I can safely say I'm impressed.

The highest cost fund will levy an ongoing annual TER of 0.55% per year, and that's for Vanguard Emerging Markets Stock Index fund--a fund focused on an expensive asset class. At the other end of the spectrum, Vanguard FTSE UK Equity Index fund, a FTSE All Share tracker will charge just 0.15% per year,

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Christopher J. Traulsen, CFA  is director of fund research, Europe and Asia, Morningstar.