The wait is over.
Morningstar Analyst Ratings has identified the best and the worst of 2018’s college savings plans.
The list is based on five “P”s: Process, People, Parent, Price and Performance. In addition, Morningstar rated the plans according to any unique benefits, such as local tax breaks, grants and scholarships.
In 2018, Morningstar assigned analyst ratings to 62 plans representing more than 95 percent of assets invested in 529 plans. Morningstar upgraded two plans and downgraded nine.
Thirty-one plans following industry best practices, as well as offering some combination of low fees, a strong set of underlying investments, a solid manager selection process, a well-researched asset allocation approach, an appropriate set of investment options to meet investor needs, and strong oversight from the state and program manager, were rated Best-in-Class and received Analyst Ratings of Gold, Silver or Bronze.
The Morningstar Gold Awards for 529 Direct Distribution Plans went to the following plans:
- Bright Start College Savings in Illinois;
- Invest29 in Virginia;
- Vanguard 529 College Savings in Nevada; and
- my 529/Utah Educational Savings Plan in Utah.
The four plans repeated their Gold award-winning performances from 2017, standing out for their low costs, strong stewardship and exceptional investment options.
The nine plans that received the Morningstar Silver Awards for 529 Direct Distribution Plans also repeated their award-winning status from 2017. The Silver Awards went to the following plans:
- Bright Directions College Savings Advisor Distribution in Illinois;
- CollegeAdvantage 529 Savings Direct Distribution in Ohio;
- CollegeAmerica Advisor Distribution in Virginia;
- CollegeCounts 529 Direct Distribution in Alabama;
- Maryland College Investment Direct Distribution in Maryland;
- Michigan Education Savings Direct Distribution in Michigan;
- MOST -- Missouri's 529 Direct Distribution in Missouri;
- ScholarShare College Savings Direct Distribution in California; and
- T. Rowe Price College Savings Direct Distribution in Alaska.
The 18 Bronze-Rated Awards for 2018 included two college savings plans that Morningstar rated differently from their previous status last year. CollegeBound 529 Direct Savings Direct Distribution in Rhode Island was previously rated Silver, but this year was rated Bronze, while Oregon College Savings Direct Distribution in Oregon was rated Neutral last year, and this year was rated Bronze.
The 16 other Bronze-Rated Awards for 2018 went to the following plans: