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Fund Spy

Morningstar Names Best 529 College-Savings Plans

Six plans move to the head of the class in 2011.

Students of the 529 college-savings plan industry take note: These plans continue to get better marks for lower fees and higher-quality investments.

Morningstar's eighth annual study of 529 plans found that several plans have trimmed their expense ratios in recent months, with the industry's average asset-weighted expense ratio dropping to 0.87% from 0.94% over a 10-month period through August 2011. That decline represents significant price cut in plans from states such as Georgia, Nebraska, and Oklahoma.