Bloomberg Talks Vanguard CEO Salim Ramji Talks ETF Fee Cuts
Feb 2, 2026
Salim Ramji, CEO of Vanguard Group and leader of a major low-cost investment firm. He talks about Vanguard's recent fee cuts and the choices behind them. He explains why Vanguard still backs active strategies while keeping costs low. He outlines investments in tech and client service alongside pricing moves. He also touches on international growth and regulatory topics.
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Vanguard's Long History Of Fee Cuts
- Vanguard has announced fee cuts repeatedly, calling this the roughly 2,200th time they've lowered fees since founding.
- Salim Ramji explains Vanguard's client-owned structure lets surplus fund both investments and fee reductions.
Costs Drive Active And Passive Outcomes
- Costs matter across both active and index funds and strongly influence long-term returns for investors.
- Lower fees give active managers a smaller hurdle to overcome, improving the odds of outperformance.
Prefer Low‑Fee Active Fixed Income
- Choose active funds with low fees because they increase the chance of net outperformance versus peers.
- Salim Ramji highlights Vanguard's active fixed income charging 11 bps with 88% peer outperformance over ten years.