(Bloomberg) -- Vanguard Group Inc., the world’s largestmutual fund company, filed to create anew share class for some funds that would charge institutionalinvestors as little as one cent for every $100 invested.

Read: Vanguard's gain is Wall Street'spain

The 0.01 percent annual fee, if approved by the U.S. Securitiesand Exchange Commission, will apply to three funds--the VanguardTotal Stock Market Index Fund, Vanguard Total Bond Market IndexFund and Vanguard S&P 500 Index Fund--according to companyspokesman David Hoffman.

Slightly higher fees will be charged on three other funds, hesaid.

Read: DOL favorite Vanguard has issues withfiduciary proposal

The new share class called “institutional select” will apply toinvestments of between $3 billion and $5 billion, depending on thefund.

“This is just Vanguard putting a stick in the eye of thecompetition,” said Daniel Wiener, editor of the Independent Adviserfor Vanguard Investors, a newsletter. “They are just saying we cantake this down as far as you want.”

Vanguard, based in Valley Forge, Pennsylvania, has beencompeting with firms such as Charles Schwab Corp. to offer thelowest prices on indexed products, including exchange-tradedfunds.

Vanguard manages more than $3 trillion, a majority of it infunds that track indexes.

The company last year attracted a record $236 billion indeposits.

Copyright 2018 Bloomberg. All rightsreserved. This material may not be published, broadcast, rewritten,or redistributed.