Large accounts and long-term retail account relationships create desirable cost efficiencies in a mutual fund. Those efficiencies lead to substantial cost savings, which we believe should be delivered to the fund shareholders who create them. Consider how costs impact investment performance. Limit frequent trading that is unlikely to add value. Admiral Shares generally have operating expenses that are considerably lower than Investor-Class Shares.
Cost savings can significantly increase fund returns over time.
Vanguard funds already lead the industry in providing low expense ratios, and the Admiral Shares program expands this advantage. The monetary value of your Admiral Shares will equal the monetary value of your Investor Shares on the day of the conversion. However, it is possible that you will own a different number of Admiral Shares than you did Investor Shares. Subsequent fluctuations in share price could decrease or increase the total value of your Admiral Shares compared to Investor Shares. Regardless of slight variations in share prices over the short term, a fund's Admiral Share Class will provide a higher total return over time.