Vanguard Cuts Fees on Popular Dividend ETF

Vanguard, the third-largest U.S. ETF sponsor, lowered the annual expense ratio on its popular Vanguard Dividend Appreciation ETF VIG to 0.1 percent from 0.13 percent effective Tuesday. VIG is the largest dividend ETF by assets with $16.2 billion and has raked in $2.1 billion of that total this year, ETF Trends reported. Fee reductions are nothing new for Vanguard, the pioneer of low cost index funds. In February, the firm cut fees on eight of its ETFs, including popular global funds such as the Vanguard FTSE Emerging Markets ETF VWO and the Vanguard FTSE Europe ETF VGK. VIG is not the first dividend ETF Vanguard has lowered fees on this year. In February, fees on the Vanguard High Dividend Yield ETF VYM were lowered to to 0.1 percent from 0.13 percent. Prior to the fee reduction, VIG was cheaper than 88 percent of comparable ETFs, according to Vanguard. VIG's top-10 holdings including PepsiCo PEP, Wal-Mart WMT and Chevron CVX. Eight of VIG's top-10 holdings are Dow components with PepsiCo and Abbott Labs ABT the exceptions. For more on ETFs, click here.