Morningstar, known for its rigorous assessment of financial instruments, released its annual 529 industry report, evaluating 54 plans across the country. my529, Utah’s educational savings plan, was one of only two plans to receive the distinguished Analyst Rating™ of Gold for the year 2023.
The criteria for the Morningstar analysis encompasses factors such as the quality of underlying investments, the selection process, the investment team’s expertise, asset allocation methodology, state oversight, and fees. Analysts from Morningstar emphasized that Gold-rated plans like my529 excel in various aspects, including the construction of investment options, prudent stewardship, and low costs.
My529’s commitment to enhancing the experience for account owners stood out in the Morningstar report. Rather than resting on its laurels, my529 continually strives to improve its offerings. Analysts particularly praised the Target Enrollment Date option, which gradually adjusts investment allocations from aggressive to conservative as beneficiaries age. The Customized Age-Based option, allowing account owners to tailor their portfolio according to their goals, time horizon, and risk appetite, was also recognized as a valuable feature.
To put the achievement in perspective, over the same 13-year period, a kindergartner could have grown up, graduated from high school, enrolled in college, university, or technical college—and used their my529 funds to cover qualified education expenses, including tuition, books, room and board, and internet access.
Richard Ellis, my529’s executive director, expressed his appreciation for Morningstar’s continued recognition, stating, “We are committed to our mission to help families in Utah and across the country invest for their educational journey. That dedication informs everything we do at my529—from offering a range of low-cost investment options to providing a stellar account owner experience. We are proud to deliver innovative solutions for the 529 investor.”
To access Morningstar’s full 529 industry report, please click here.
About my529
my529 is Utah’s official nonprofit 529 educational savings plan. With no minimum deposit or account balance requirements, my529 offers free account openings and a user-friendly website, my529.org, making it easy to manage and contribute to accounts online.
For more information, visit my529.org, call toll-free at 800.418.2551, or email info@my529.org.
Important Legal Notice
Investing is an important decision. The investments in your account may vary with market conditions and could lose value. Carefully read the Program Description in its entirety for more information and consider all investment objectives, risks, charges and expenses before investing. For a copy of the Program Description, call 800.418.2551 or visit my529.org.
Investments in my529 are not insured or guaranteed by my529, the Utah Board of Higher Education, the Utah Education Savings Board of Trustees, any other state or federal agency, or any third party. However, Federal Deposit Insurance Corporation (FDIC) insurance is provided for the FDIC-Insured investment option. In addition, my529 offers investment options that are partially insured for the portion of the respective investment option that includes FDIC-insured accounts as an underlying investment.
The state in which you or your beneficiary pay taxes or live may offer a 529 plan that provides state tax or other benefits, such as financial aid, scholarship funds and protection from creditors, not otherwise available to you by investing in my529. You should consider such benefits, if any, before investing in my529.
my529 does not provide legal, financial, investment or tax advice. You should consult your own tax or legal advisor to determine the effect of federal and state tax laws on your particular situation. my529 was rated “Gold” or its equivalent by Morningstar 2004-2007, 2009, and 2011-2023; rated “Silver” or its equivalent in 2008 and 2010. The Morningstar Analyst RatingTM for 529 college savings plans is not a credit or risk rating. To determine an analyst rating, Morningstar’s analysts consider four factors: the plan’s strategy and investment process (process); an assessment of the individuals managing the plan’s investment options (people); the stewardship practices of the plan’s administration and parent firm (together, parent); and whether the plan’s investment options are a good value proposition compared to its peers (price). Plans are then assigned forward-looking ratings of “Gold,” “Silver,” “Bronze,” “Neutral,” and “Negative.” The top three ratings (Gold, Silver, and Bronze) indicate that Morningstar’s analysts think highly of a 529 plan; the differences correspond to the level of analyst conviction in the ability of a plan’s investment options to collectively outperform their respective benchmarks and peers through time, within the context of the level of risk taken. Morningstar does not rate all 529s every year; it rated 54 plans in 2023.
Analyst ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst ratings are based on Morningstar analysts’ current expectations about future events and therefore involve unknown risks and uncertainties that may cause Morningstar’s expectations not to occur or to differ significantly from what was expected. Morningstar does not represent its analyst ratings to be guarantees. Please visit Morningstar.com for more information about the analyst ratings, as well as other Morningstar ratings and fund rankings.
