The 529 college savings plan industry has made many improvements over the past dozen years, including more sophisticated investment methods, more oversight by states and lower fees, Morningstar notes in a new report.
The investment research firm analyzed 59 plans and identified 32 standouts that earned its gold, silver or bronze medalist ratings based on qualities such as well-researched asset-allocation approaches, strong investment selecting processes and experienced investment teams.
Eleven plans were upgraded and nine downgraded.
Families saving for college should be well-positioned if they're invested in the top funds, Morningstar says.
In the gallery are the five 529 plans that Morningstar chose as gold, and the states that issue them.
An updated methodology moved the three states' plans to gold level from silver.
"All three states diligently and aggressively advocate for their investors," Morningstar said.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.