Vanguard will cut the ongoing charges figure (OCF) on the Vanguard FTSE All World UCITS ETF from 0.19% to 0.14%.
The fee reduction of more than 25% will apply from 28 July 2026 and the firm estimates it will save investors about $37m a year.
The Vanguard FTSE All World UCITS ETF has attracted over $16bn in net inflows so far this year and, according to Vanguard, is Europe's largest FTSE All World ETF with assets under management of $76.8bn.
Jon Cleborne, head of Europe at Vanguard, said: "Investing through a globally diversified, low-cost and highly liquid single-ETF portfolio has just become even more attractive.
“As one of Europe's leading all-world equity ETFs, the Vanguard FTSE All-World UCITS ETF offers investors a simple way to access the growth potential of around 4,000 large- and mid-cap companies across global markets. This fee reduction reflects Vanguard's longstanding commitment to using the benefits of our scale to lower costs and improve outcomes for investors."
Vanguard said it offers the lowest-cost UCITS ETF range in Europe on an asset-weighted basis. Following the latest cut, the average asset-weighted expense ratio across its European equity and fixed income ETF range will stand at 0.11%.
The latest reduction means Vanguard has lowered fee across its European mutual fund and ETF range more than 80 times over the past decade. The firm estimated that total investor savings from cuts made over the past 24 months now exceed $80m.