Vanguard index fund net security lending income (2017)

Vanguard has a policy of returning 100% of after expense security lending income to its mutual funds that lend securities. The Statement of Additional Information to a fund prospectus itemizes security lending income and expenses so that the net percentage of gross security lending can be determined.

The following table provides 2017 fiscal year gross income, aggregate expenses, net income and the percentage of income figures for the security lending income earned by   Vanguard index funds.

For US stock index funds, the dominant expense items are administrative fees and rebates to borrowers. For international funds the dominant expense items are revenue split fees to the security lending agent, administrative fees and rebates to borrowers.

In aggregate, Vanguard index fund security lending returned 90.38% of gross security lending income to the funds. The percentage return ranged from a low of  59.98% for the Value Index Fund to 94.07% for the Extended Market Index Fund.

Vanguard index fund security lending (2017)

Fund Gross Expenses Net Pct.
Total Market 118,999,803 9,209,565 109,790,238 92.26%
S&P 500 5,516,981 1,285,704 4,231,277 76.70%
Extended 58,728,210 3,480,959 55,247,251 94.07%
Large cap 663,444 39,732 623,712 94.01%
Growth 6,405,874 645,307 5,760,567 89.93%
Value 406,239 162,578 243,661 59.98%
Mid cap 5,724,012 1,163,855 4,560,157 79.67%
Mid growth 868,269 104,306 763,963 87.99%
Mid value 354,552 105,745 248,807 70.18%
Small cap 44,937,788 4,221,234 40,716,554 90.61%
Small growth 14,370,036 1,197,497 13,172,539 91.67%
Small value 10,890,941 733,791 10,157,150 93.26%
Total International 226,288,210 23,741,126 202,547,084 89.51%
Developed markets 75,076,162 8,642,472 66,433,690 88.49%
European 15,652,118 1,969,072 13,683,046 87.42%
Pacific 5,849,323 442,896 5,406,427 92.43%
Emerging 35,281,208 3,092,601 32,188,607 91.23%
FTSE all ex US 16,940,984 1,800,989 15,139,995 89.37%
FTSE all ex US small 12,969,731 1,087,440 11,882,291 91.62%
Total World 4,355,128 394,170 3,960,958 90.95%
Global ex US real estate 5,037,305 459,498 4,577,807 90.88%
Aggregate 665,316,318 63,980,537 601,335,781 90.38%

Notes

Data derived from Statement of Additional Information segments of 2017 fund prospectuses.

About

Barry Barnitz, administrator of both the Bogleheads® wiki and of Financial Page, a Bogleheads® blog

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