​ Vanguard Cuts Expense Ratios to 0.​24 Percent on Money Market Funds. The Vanguard Group has reduced expense ratios on its Vanguard Prime Money Market Fund, Vanguard Federal Money Market Fund, and Vanguard Treasury Money Market Fund to 0.​24% from 0.​30%, and has reduced the expense ratio on Vanguard Admiral Treasury MMF to 0.​10% from 0.​13%. Vanguard Prime MMF Institutional continues to have an expense ratio of 0.​09% and the Vanguard Tax Exempt Money Fund ratios also remain unchanged at 0.​13%. "Vanguard has a long history of lowering costs as funds grow," says spokesman John Woerth. Vanguard has seen its Prime money fund yields decline relative to other funds due to the absense lack of asset-​backed commercial paper. Vanguard Prime MMF had been the No. 1-​yielding Individual money fund for the first half of 2007, but it has dropped down to No. 5 since the August ABCP market turmoil hit. Normally, expenses are the main determinant of money fund performance, accounting for over half of returns. But security and maturity selection have recently risen in importance.

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