When it comes to college savings plans, some get the job done better than others—not just each and every semester of every academic year, but each and every quarter of every fiscal year.
To find out which states’ 529 plans are doing a better job than others at helping college students finance their education, savingforcollege.com ranked more than 3,000 529 plan portfolios based on three-year performance as of the end of the second quarter.
Using a formula to assess four key asset-allocation categories, savingforcollege.com ranked each plan on a scale of one to five, then calculated its percentile ranking in comparison to other plans in the study, with a score of one being best and 100 being worst.
Here, in ascending order, are the top 10 best-performing 529 plans of the second quarter.
10. Pennsylvania 529 Investment Plan – Pennsylvania
Pennsylvania’s 529 Investment Plan offer 15 Vanguard investment options, including a socially responsible equity portfolio, and has no residency requirements. The Pennsylvania 529 Investment Plan received 3.78 graduation caps for performance; 4.13 for costs; 4.20 for features; and 4.56 for reliability, for an overall rating of four. Overall Performance Score: 37.10.
9. Bright Start Direct-Sold College Savings Program - Illinois
Since July 2017, Union Bank & Trust Co., has managed this Illinois direct-sold plan, which has no residency requirements. Bright Start received 4.25 graduation caps for performance; 4.96 for costs; 4.42 for features; and 4.89 for reliability, for an overall rating of 4.5. Overall Performance Score: 36.93.
8. START Saving Program – Louisiana
Subsidized by Louisiana, the START Saving Program is only open to state residents. The START Saving Program received 3.42 graduation caps for performance; five for costs; 3.69 for features; and 3.04 for reliability, for an overall rating of 4.5. Overall Performance Score: 36.90.
7. CollegeChoice 529 Direct Savings Plan – Indiana
Upromise Investments Inc., now owned by Ascensus College Savings, has managed Indiana’s CollegeChoice 529 since 2008. The plan has no residency requirements. The CollegeChoice 529 Direct Savings Plan received 3.86 for performance; 4.31 for costs; 3.76 for features; and 4.67 for reliability, for an overall rating of four out of five. Overall Performance Score: 35.55.
6. New York’s 529 College Savings Program Direct Plan – New York
Substantially changed in 2003, New York’s 529 Direct Plan offers low fees and diverse investment options featuring Vanguard mutual funds. The plan has no residency requirements. New York’s direct-sold 529 plan received 3.99 for performance; five for costs; 3.91 for features; and 4.99 for reliability, for an overall rating of 4.5. Overall Performance Score: 34.61.
5. Smart529 WV Direct College Savings Plan – West Virginia
Established in 2002, the West Virginia SMART529 Plan is only open on a direct basis to residents who meet qualifying requirements. The West Virginia Smart529 Plan received 4.38 for performance; five for costs; 3.84 for features; and 4.67 for reliability, for an overall rating of five. Overall Performance Score: 32.13.
3. Alaska 529 – Alaska (tied)
Previously known as the University of Alaska College Savings Plan, Alaska 529 is managed by T. Rowe Price. The plan has no residency requirements. Alaska 529 received 4.97 for performance; 4.41 for costs; 3.62 for features; and five for reliability, for an overall rating of 4.5. Overall Performance Score: 31.35.
3. T. Rowe Price College Savings Plan – Alaska (tied)
This nationally branded version of Alaska’s direct-sold 529 savings program does not include the ACT Portfolio. The plan has no residency requirements. The T. Rowe Price plan received 4.97 for performance; 4.34 for costs; 3.55 for features; and five for reliability, for an overall rating of 4.5. Overall Performance Score: 31.35.
2. Nebraska Education Savings Trust Direct College Savings Plan – Nebraska
Managed by Union Bank and Trust since 2020, the Nebraska Education Savings Trust plan can be linked to the Upromise rewards service, and has no residency requirements. The Nebraska Education Savings Trust plan received 4.51 for performance; five for costs; five for features; and 4.78 for reliability, for an overall rating of five. Overall Performance Score: 29.38.
1. Ohio’s 529 Plan, CollegeAdvantage – Ohio
Ohio’s 529 plan features three age-based and five risk-based options; a college enrollment-based option; 13 static investment options; and two types of FDIC-insured deposit accounts. The plan has no residency requirements. The CollegeAdvantage plan received 4.39 for performance; 4.94 for costs; five for features; and 4.89 for reliability, for an overall rating of five out of fives. Overall Performance Score: 26.24.
The full report can be viewed here.