VALLEY FORGE, Pa. The Vanguard Group said it will add a class of low-expense shares to 13 taxable and tax-exempt bond funds next month.
The expense ratios for its new Admiral Shares will range from 0.13% to 0.24%, six to 14 basis points lower than for the corresponding Investor Shares, according to Vanguard.
The ratios for the average taxable bond fund and average tax-exempt bond fund are 1.11% and 1.05%, respectively, according to 1999 data from Lipper Inc.
A $10,000 investment in the typical taxable bond fund, for example, would cost an investor $111 in the first year but the same investment in Admiral Shares of a corresponding Vanguard fund would cost $18.
