Costs Weigh on the Nation’s Largest 529 Plan
Virginia’s CollegeAmerica earns praise for its investment team and underlying processes, so why does it net a just Bronze rating?
At $91 billion in assets, Virginia’s CollegeAmerica 529 plan accounts for nearly one fifth of the entire 529 industry and is more than twice the size of the second-largest plan. It is sold nationwide entirely through financial advisors; this wide remit, plus Capital Group’s vast distribution capabilities, allows CollegeAmerica to reach more investors than 529 plans sold directly to savers, which tend to be held primarily by in-state residents.
Tom Nations does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.