Vanguard’s European Price Cut To Have Limited Impact: Citi

Vanguard cut fees on 23 of its European passive products in a bid to keep costs to a minimum for investors as it increased its scale and operating efficiencies in the region. Even before these cuts, Vanguard was the cheapest fund manager (expense ratio of 12 bps) in Europe, ahead of BlackRock, Inc. (NYSE:BLK) (36 bps) and Deutsche Bank AG (NYSE:DB) (ETR:DBK) (35 bps), according to data provider ETFGI. Vanguard’s raging price war Last year, Vanguard changed its index provider from Msci Inc (NYSE:MSCI) to FTSE 100 (INDEXFTSE:UKX) in order to shave operating costs. In the US, Vanguard aligned cost structures…