Vanguard's costs come in two buckets. The first is fund expense ratios, which average just 0.06% across its lineup, or about $6 a year per $10,000 invested. The second is a $25 annual account service fee that most investors erase entirely by switching to electronic delivery. Everything else, from online stock and ETF trades to options exercises, is largely $0.
That structure is why Vanguard remains the reference point for low-cost investing. But "low cost" is not "no cost," and a handful of service charges still catch people who transfer out, trade by phone, or hold non-Vanguard funds. Here is the full 2026 picture, verified against Vanguard's current commission and fee schedule.
Key takeaways
- Vanguard's asset-weighted average expense ratio is 0.06%, roughly six times below the fund industry's average of about 0.35% (Morningstar).
- The only account-wide charge is a $25 annual account service fee, and it is waived the moment you turn on e-delivery of statements and documents.
- Online trades in US stocks, ETFs, and Vanguard mutual funds cost $0. Options are $0 plus $1 per contract, and exercises and assignments are free.
- Vanguard cut fund fees twice in a row, in February 2025 (168 share classes) and February 2026 (84 share classes), for more than $500 million in combined investor savings.
- Watch the junk fees: $100 to close or transfer out an account, $20 per non-Vanguard transaction-fee mutual fund trade, and a $25 surcharge on any broker-assisted trade.
Expense ratios: the fee that actually moves the needle
For a buy-and-hold investor, the expense ratio matters far more than any transaction charge. It is the annual percentage each fund deducts to cover its own operating costs, and it comes straight out of your return whether the fund gains or loses.
Vanguard's asset-weighted average expense ratio is 0.06% as of its February 2, 2026 announcement. The fund industry's asset-weighted average sits near 0.35% (Morningstar's most recent fund fee study). On a $250,000 portfolio, that gap is roughly $150 a year versus about $875, and the difference compounds for decades.
The firm's flagship index funds and ETFs sit well below even its own average:
| Fund | Ticker | Expense ratio | Annual cost per $10,000 |
|---|---|---|---|
| S&P 500 ETF | VOO | 0.03% | $3 |
| Total Stock Market Index (Admiral) | VTSAX | 0.04% | $4 |
| Total Bond Market Index (Admiral) | VBTLX | 0.05% | $5 |
| Total International Stock Index (Admiral) | VTIAX | 0.11% | $11 |
Source: Vanguard fund fee pages, 2026.
Actively managed Vanguard funds cost more but still undercut most rivals. Vanguard keeps these numbers low largely because of its ownership structure: the funds own the management company, so it operates close to at-cost rather than paying outside shareholders.
The 2025-2026 fee cuts
Vanguard has been cutting expense ratios aggressively. On February 3, 2025 it lowered fees on 168 share classes across 87 funds, its broadest single round in 50 years, saving investors an estimated $350 million that year. It followed up on February 2, 2026 with cuts to 84 share classes across 53 funds, worth roughly another $250 million. Combined, that is more than half a billion dollars in expected savings since 2025.
One thing the 2025-2026 changes did not do is scrap Vanguard's service fees. If anything, the account service fee moved from $20 to $25, and the $100 account-closure fee introduced in 2024 is still in place. The savings are on the fund side, not the account side.
Account service fee and how to avoid it
Vanguard may charge a $25 annual account service fee on each brokerage account. It is trivial to avoid. The fee is waived if any one of these applies:
| Fee | Amount | How to avoid it |
|---|---|---|
| Annual account service fee | $25 per account | Elect e-delivery of statements, confirmations, reports, and prospectuses; or hold $1M+ in qualifying Vanguard assets; or use a trust/organization account under an EIN; or enroll in a Vanguard advisory service. Cash Plus accounts are exempt. |
For nearly every self-directed investor, turning on e-delivery is the one-click fix, and it takes the fee to zero permanently.
Commissions and trading fees
Online trading is where Vanguard is cheapest, and where it is easy to trip over a surcharge if you pick up the phone. These figures are from Vanguard's commission and fee schedule effective July 10, 2026.
| Transaction | Online | Broker-assisted |
|---|---|---|
| US stocks and ETFs | $0 | $25 per trade |
| Vanguard mutual funds | $0 | $25 per trade |
| Non-Vanguard no-transaction-fee (NTF) funds | $0 | $25 per trade |
| Non-Vanguard transaction-fee (TF) funds | $20 per trade | $20 + $25 per trade |
| Options | $0 + $1 per contract | $0 + $1 per contract ($25 surcharge may apply) |
| US Treasuries (new and secondary) | $0 | $0 |
A few details worth knowing:
- Options exercises and assignments are commission-free, and clients with $1 million or more in qualifying assets get a block of free options and TF-fund trades each year (25 trades at $1M+, 100 at $5M+).
- The $25 broker-assisted commission is dropped entirely for clients with $1 million or more in qualifying assets.
- Secondary-market CDs, agency, corporate, and municipal bonds cost $1 per $1,000 of face value, capped at $250 per trade. Mortgage-backed securities and unit investment trusts run $35 per trade.
- Selling a non-Vanguard fund within 60 days of buying it triggers a $50 early redemption fee.
Advisory fees
If you want Vanguard to manage the portfolio, there are two tiers, both far below the traditional 1% advisor standard.
| Service | Advisory fee | Minimum |
|---|---|---|
| Digital Advisor (robo) | ~0.15% net for an all-index portfolio (gross fee capped at 0.20%), first 90 days free | $100 |
| Personal Advisor | 0.30% up to $5M, then 0.20% ($5M-$10M), 0.10% ($10M-$25M), 0.05% above $25M | $50,000 |
Advisory fees stack on top of the underlying funds' expense ratios, so a Personal Advisor client in index funds pays roughly 0.30% plus about 0.05% in fund costs, still a fraction of what most human advisors charge.
The junk fees to watch
Most investors will never see these, but they are the charges that surprise people, and none of them are waived by e-delivery. They come from Vanguard's July 2026 "Fees for other services" schedule.
| Fee | Amount | Notes |
|---|---|---|
| Account closure / full transfer out | $100 | Waived at $5M+ qualifying assets or in an advisory account; ACH and bank transfers are exempt |
| Wire transfer | $10 | Waived on retirement-account wires and at $1M+ qualifying assets; bank transfers are free |
| Foreign securities transaction | $50 | Non-DTC-eligible securities, plus any commission |
| Deposit of physical certificates | $100 per CUSIP | Does not apply to CDs |
| Restricted security legend removal | $250 | Research and removal of a trading restriction |
| Class action service | 20% | Deducted from any class action settlement recovered on your behalf |
The bottom line
For a self-directed investor holding Vanguard index funds with e-delivery switched on, the all-in cost is close to the expense ratio alone, which is exactly the point. The fees that matter are the ones baked into your funds, and Vanguard's are among the lowest anywhere. The service charges are real but almost entirely avoidable, and the ones most likely to bite come when you leave, transfer assets, or trade by phone. Before you move money, check the current Vanguard fee schedule, because the numbers here reflect the schedule effective July 10, 2026 and Vanguard revises it periodically.
Frequently asked questions
How do I avoid Vanguard's $25 annual account service fee?
Elect e-delivery of statements, confirmations, reports, and prospectuses, which takes the fee to zero permanently with a one-click change. The fee is also waived if you hold $1 million or more in qualifying Vanguard assets, use a trust or organization account under an EIN, or enroll in a Vanguard advisory service. Cash Plus accounts are exempt.
What is Vanguard's average expense ratio compared to the industry?
Vanguard's asset-weighted average expense ratio is 0.06 percent, roughly six times below the fund industry's average of about 0.35 percent per Morningstar. On a $250,000 portfolio, that gap is roughly $150 a year versus about $875. Vanguard keeps costs low largely because its funds own the management company, so it runs close to at-cost.
What are Vanguard's junk fees that surprise investors?
The charges most likely to bite are $100 to close or transfer out an account, $20 per non-Vanguard transaction-fee mutual fund trade, and a $25 surcharge on any broker-assisted trade. None of these are waived by e-delivery. Others include a $10 wire transfer fee and a $50 early redemption fee for selling a non-Vanguard fund within 60 days.
How much does it cost to trade options at Vanguard?
Options cost $0 plus $1 per contract, and exercises and assignments are commission-free. Clients with $1 million or more in qualifying assets get a block of free options and transaction-fee fund trades each year, 25 at $1M and 100 at $5M. Online trades in US stocks, ETFs, and Vanguard mutual funds are $0.
What are Vanguard's advisory fees for managed portfolios?
Digital Advisor, the robo option, runs about 0.15 percent net for an all-index portfolio with a $100 minimum and the first 90 days free. Personal Advisor charges 0.30 percent up to $5M, then steps down to 0.05 percent above $25M, with a $50,000 minimum. Both stack on top of the underlying funds' expense ratios.