Fee reduction for high-performing ESG pools
Dec 23, 2021
A significant fee reduction has gone into effect for all three of our Values-driven Investments. These investment options (also known as ESG pools for their emphasis on environmental, social, and governance criteria) are among the fastest-growing pools in terms of their popularity over the past few years, allowing our donors to align their investments with their broader values.
|Investment Pool||Old expense ratio||New expense ratio||Fee Change|
ESG U.S. Stock
ESG International Stock
ESG Global Stock
When Vanguard, a low-cost leader in the investment industry, reduces the expense ratios of funds underlying Vanguard Charitable investment pools, we immediately pass those savings on to our donors.
As the table indicates, the new expense ratios reflect fee reductions of between 20% and 25% across the three pools. Substantially lower fees like these can make a significant impact on the charitable returns and giving capacity of your donor-advised fund account, leading to greater generosity and even more meaningful support for the charities you care about most.
What are Values-driven Investments?
Our Values-driven Investments allows donors to align charitable investments with personal values. Companies are screened for certain ESG criteria, and the funds specifically exclude stocks of companies in industries such as alcohol, tobacco, weapons, adult entertainment, gambling, and nuclear power, as well as companies that own fossil fuels reserves. The index funds also exclude stocks of certain companies that the index provider determines do not meet standards of U.N. global compact principles and companies that do not meet certain diversity criteria. Donors looking to grow their portfolios over time with equity investments may wish to utilize this option solely or as part of a diversified portfolio to achieve a range of giving goals.
In addition to now being even more cost-efficient, these three pools have produced strong returns over the past year. As of the end of September 2021, the pools had returned one-year returns of 30.89% (ESG U.S. Stock), 21.96% (ESG International Stock), and 28.32% (ESG Global stock).1
Maintenance fee may be applied
Accounts having a balance below $25,000 may be subject to an annual maintenance fee of $250.
You are eligible for special rates
Our premier clients enjoy reduced pricing to further maximize their impact.
Our representatives are happy to guide you through.