One of the advantages of Bright Start is that its age-based and target portfolios also have multifirm investment options available, allowing you to build a portfolio from different fund families.
Bright Start's portfolios offer solid performance with fees that are reasonable, although not the lowest you can find. The total asset-based expense ratio ranges from 0.06% to 0.765%.
Best for Wide Availability: Vanguard 529 Plan
The Vanguard 529 Plan is administered by the state of Nevada, but it's open to anyone, and it's a fantastic choice no matter where you live. Vanguard is known for low fees, and its 529 plan doesn't disappoint in that regard.
There are no enrollment fees, transfer fees, or commissions. Target enrollment portfolios have expense ratios of just 0.14%, while fees on individual portfolios range from 0.12% to 0.37%.
The Vanguard 529 Plan has an initial investment minimum of $1,000. For Nevada residents, the minimum is $500, which is still more than many 529 plans. However, you can open this plan with a $50 minimum if you open your account online and sign up for the automatic investment plan.
Best for High-Risk Tolerance: Oregon College Savings Plan
The Oregon College Savings Plan offers many portfolio options, and they all tend to perform well. We recommend it if you have a high risk tolerance because its aggressive target portfolio, in particular, has done better than similar offerings from other 529 plans.
This 529 plan charges a state administrative fee of 0.20% and variable asset-based fees of 0% to 0.453%, depending on the investment portfolio. For an aggressive target portfolio, total annual asset-based fees are 0.244%.
Anyone can invest in an Oregon College Savings Plan. However, you only get tax breaks on contributions if you're an Oregon resident.
Best Overall Option: Utah my529
For its consistent excellence, Utah my529 is the best of the best. It has earned Morningstar's Analyst Rating of Gold™, a rating few 529 plans receive, for 14 consecutive years.
Utah my529 gives parents plenty of portfolio choices. There are 12 target enrollment date portfolios, as well as static investment options. You also have the option of a customized portfolio.
As far as fees go, the asset-based fee range is 0.113% to 0.124% for target enrollment date portfolios, 0.090% to 0.200% for static portfolios, and 0.120% to 0.398% for customized investment options. It's not the cheapest option, but slightly higher fees are a small price to pay for top-notch performance from a well-managed 529 plan.
