Get a taste of how Vanguard does business
If you're wondering why one of the world's largest investment companies was selling premium coffee, here's the scoop. When you buy a great cup of coffee that's 1⁄5 the average price of coffee, you see for yourself that paying less means you keep more.*
That's how costs work with our mutual funds.
They cost 1⁄5 the industry average—just like our coffee.**
Pay less and keep more
See what the price of one cup of coffee can teach you about investing costs.Watch the video
How can Vanguard offer
coffee mutual funds for less?
Our secret is simple: We offer our funds "at cost."*** That means you pay only what it costs us to run the funds, which happens to be—on average—1⁄5 as much as everyone else.
We can do this because we're the only company in the industry that's client-owned.† We're owned by our funds and the funds are owned by the people who invest in them, people like you. We don't generate profits for private owners or stockholders. We return profits to you as cost savings.
Selling premium coffee for less is just a fun way to spread the word about costs.
Sip coffee and let your savings brew
Saving a buck on coffee is nice.
Potentially saving thousands on your investments is something to savor!
Costs matter, especially over time. If you invested $50,000 in a fund with the current average Vanguard expense ratio, in 30 years you could have $65,793 more than someone who invested in a fund with the industry's average expense ratio.**
(This is a hypothetical scenario—it doesn't refer to any specific investment. It assumes a 6% annual rate of return with earnings being reinvested.)
So, over time, letting your savings "brew" with lower expenses could help you save more.