Jan 29 (Reuters) - Vanguard Group Inc, the world’s biggest mutual fund company, has applied to create a new share class for some funds that would charge investors as little as 0.01 percent, or $1 for every $10,000 invested, annually.
The company plans to apply the fee for at least two funds, the Vanguard Total Stock Market Index Fund and the Vanguard 500 Index Fund, according to a regulatory filing on Friday. (1.usa.gov/1RRlg7N)
The new share class, called “Institutional Select”, is applicable on a minimum investment of $5 billion for these two funds, Vanguard said.
Vanguard recently relaxed trading restrictions to allow investors to trade in the same fund within 30 days, in a bid to compete better during a tumultuous time for the global markets.
Vanguard has about 160 U.S. funds and about 120 additional funds in markets outside the United States. It has about $3 trillion in assets under management globally. (Reporting by Sudarshan Varadhan in Bengaluru; Editing by Savio D‘Souza)