The Best 529 Plans for 2023
These plans earn Morningstar’s highest rating.
Patricia Oey
Patricia Oey is a senior manager research analyst for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. She covers a range of multi-asset strategies, including target-date series, 529 plans, and model portfolios.
Before joining Morningstar in 2007, Oey was an equity research analyst for Morgan Joseph.
Oey holds a bachelor's degree in Asian studies from Williams College and a master's degree in business administration from the UCLA Anderson School of Management.
Latest
Should You Be Worried About Your 529 Plan in 2022?
With both stocks and bonds in the red this year, some 529 plans have posted disappointing returns.
Morningstar 529 Ratings: The Top Plans and What They Offer
Michigan Education Savings and Utah’s my529 remain at the top; Vanguard age-based plans get a Process downgrade.
5 Charts Tracking Recent 529 Savings Plan Trends
A deeper look at how 529s have evolved.
Do 529 Plans Have Contribution Limits?
When used correctly, these popular education savings plans can be tax-smart choices for college planning.
Myths About 529 Plans
Get the facts about what plan assets can be used for, whether it's best to stick with your state's plan, and how plan assets can affect financial aid.
Vanguard Maintains Its Lead in 529 Plans
Capital Group and Fidelity round out the top three.
What New Management May Mean for Vanguard Wellesley Income
The lead equity manager is retiring. Here's what we expect from his replacement.
Addressing Common 529 Plan Concerns
We answer your questions about 529 college savings plan investment choices, fees, impact on aid, and withdrawals.
How Much Are 529 Plans' Tax Benefits Worth?
The tax benefits of 529 education savings plans, though complicated, are worth knowing.
529 Education Savings Plans That Receive Top Marks
Looking for a way to tax-consciously invest for future educational expenses? A top-rated 529 plan could be an answer.
What New Management Means for Vanguard Wellington
The fund recently underwent a change in leadership. Here's what we think of the changes so far.
Infrastructure Funds Take Their Turn in the Spotlight
These funds provide exposure to many timely investment themes, including sustainability, the U.S. infrastructure spending bill, and inflation protection.
Process Concerns Drive the Downgrades of These Funds From Eaton Vance and Vanguard
Here are some highlights from August.
Morningstar Awards for Investing Excellence--Rising Talent Nominees
Three managers to keep an eye on.
How 529 Plans Encourage Higher Education Among Underserved Groups
A closer look at some recent initiatives.
2019: A Strong Year for Income Assets, Less So for Some Income Funds
A volatile end to 2018 resulted in an overly conservative positioning going into 2019.
A Fine Balanced Strategy With a Tax-Friendly Focus
Gold-rated Vanguard Tax-Managed Balanced Fund boasts low fees, seasoned manager, and tax efficiency.
A Top Small-Cap Performer
PIMCO StocksPLUS Small takes an unusual approach.
3 Funds That Have Lost Their Mojo
These former Morningstar Medalists have all been downgraded due to significant manager changes.
What an Impending Manager Change Means for Venerable Vanguard Wellington
The long-tenured manager of this Gold-rated fund's bond sleeve is retiring in June. Should investors be concerned?
Surprise Manager Exit Rattles Quirky Income Fund
We've downgraded Berwyn Income's Morningstar Analyst Rating to Neutral as new managers with no public record running multi-asset strategies take the helm.
A Wide-Ranging Income Fund for Contrarians
Bronze-rated Berwyn Income practices a flexible value-oriented conservative-allocation strategy.
Vanguard's Cheap Set-It-and-Leave-It Option
Gold-rated Vanguard Tax-Managed Balanced is an attractive option for the cost- and tax-conscious investor.
A Solid Choice for Conservative Equity Exposure
Silver-rated Gateway has successfully employed an options strategy that has generated long-term steady performance.
An Upgrade for This Quirky Large-Blend Fund
Bronze-rated PIMCO StocksPlus Absolute Return taps into the firm's bond-investing resources and derivatives-trading capabilities in an effort to generate S&P 500-beating results.
2 Merger-Arbitrage Fund Picks
Both Bronze-rated and reasonably priced, Merger Fund and Arbitrage Fund have relatively long track records and experienced managers.
Investors See Largest Ever Decline in Fund Fees
We give an in-depth look at our annual fund fee study.
So Far So Good for This Long-Short Equity Fund
Bronze-rated Schwab Hedged Equity has been a top-quartile risk-adjusted performer, but it hasn't yet faced a sustained downturn.
2 Unorthodox Equity Funds From PIMCO
StocksPLUS and StocksPLUS Absolute Return provide exposure to the S&P 500 while also seeking to outperform the index by investing in bonds.
The Long and Short on Long-Short Equity Funds
These all-weather funds can provide diversification benefits in a market downturn.
5 Medalists in the Long-Short Equity Category
The equity rally has been tough on these funds, and investors should understand the processes when selecting a long-short strategy.
Investors Experience Higher and Rising Fees for Liquid Alternative Funds
Bucking the trend observed in other asset classes.
3 Picks Among Emerging-Markets Funds
Our analysts share three of their top emerging-markets stock funds on the heels of a strong year for the category.
How Have Alts Medalists Performed?
After a couple of rough years, 2017 is looking a little better for liquid alternatives.
Lots of Positives for This Alts Fund
Dreyfus Dynamic Total Return has competitive returns, a long track record, and below-average fees.
This Global Fund Pays Off for Patient Investors
Silver-rated Oppenheimer Global fishes globally for growth ideas.
The One Currency Fund That We Recommend
Bronze-rated Eaton Vance Diversified Currency tilts toward emerging markets, is diversified, and has relatively low fees.
Fund Fees Paid by Investors Continue to Decline
Investors have been voting with their feet for low-cost funds, bringing down average fees again in 2016.
A Market-Neutral Newcomer With Reasonable Fees
Despite AQR Market Neutral's short track record, investors should keep it on their radars.
What's Behind the Emerging-Markets Rally?
WisdomTree's Jeremy Schwartz discusses emerging markets' performance drivers, valuations, and risks.
Older Doesn't Mean Better
There are broader, cheaper options than this 2000-era world-stock ETF.
What Is an Emerging Market?
MSCI will answer this question with its June 14 announcement regarding changes to its indexes.
How Foreign Currency Fluctuations Can Affect Your Return
The translation effect can depress or inflate your international fund's return as currencies rise and fall.
Average Fund Costs Continue to Decline in 2015
But investors are not necessarily paying less.
A Low-Volatility ETF for Emerging Markets
A more tempered ride, in both downturns and in upturns.
ETFs Get Even Cheaper
Average fees paid by ETF investors have fallen over the last decade as low-cost options gain popularity and large flows create economies of scale.
A Bumpy Road for Foreign Funds in the First Quarter
Policy uncertainty in China, currency reversals, and continued domestic weakness in Japan and elsewhere weighed on global markets, but there were some bright spots, says Morningstar analyst Patty Oey.
Check This Out Before Jumping Aboard International Dividend ETFs
These 'driver-less' funds may be going places you might not want to be.
What Should You Do With Your Emerging-Markets Fund?
Stay put, but make sure your fund does not have an outsized China exposure.