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They usually do that for new young funds. The fee charged become fund assets so it is not a load or commission.
They may charge fee probably to limit initial inflow of the fund and also reduce the impact of trading costs associated with acquiring securities with your money. It also discourage frequent trading.
Other companies keep the ER high instead. Vanguard only does for deploying your funds in new assets and keeps the ER low.
As the fund grows, they remove these fees sometime later. That is akin to other fund companies reducing ER. Vanguard does things a bit differently. So, they are unique in this sense as far as I know.
Comments
They may charge fee probably to limit initial inflow of the fund and also reduce the impact of trading costs associated with acquiring securities with your money. It also discourage frequent trading.
Other companies keep the ER high instead. Vanguard only does for deploying your funds in new assets and keeps the ER low.
As the fund grows, they remove these fees sometime later. That is akin to other fund companies reducing ER. Vanguard does things a bit differently. So, they are unique in this sense as far as I know.