CHICAGO, Oct. 15, 2012 /PRNewswire/ -- Continuing its longstanding effort to help college savers and financial advisors choose the best 529 college savings plans, Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, today announced new Analysts Ratings, research, and reports for 64 of the nation's largest 529 college savings plans. Together the plans represent more than 95% of the $162 billion in U.S. 529 plan assets. Of these plans, Morningstar has identified 27 that are likely to outperform their peers on a risk-adjusted basis over a full market cycle.
Morningstar has been analyzing 529 plans for nearly a decade. Now, it is using its qualitative Analyst Ratings scale, assigning medal ratings of Gold, Silver, and Bronze, as well as Neutral and Negative ratings. 529 plans receiving a Gold rating incorporate the industry's best practices and contain investment choices that are highly regarded by Morningstar analysts. Overall, these plans stand out as best of breed for their ability to help college savers meet their goals. Plans earning Silver or Bronze ratings are also viewed positively by Morningstar analysts, have notable advantages, and are likely to outperform their peers. A Neutral rating indicates plans that are not likely to deliver standout returns, but are also unlikely to significantly underperform. On the other end of the scale, a Negative rating indicates a plan's investment options have at least one major flaw likely to significantly hinder future performance, in Morningstar's view.
This year, four plans earned Gold ratings, four plans were rated Silver, 19 plans were rated Bronze, 33 plans were rated Neutral, and four plans received Negative ratings.
Gold medalists, in alphabetical order by state:
- Alaska's T. Rowe Price College Savings Plan, managed by T. Rowe Price;
- Maryland College Investment Plan, managed by T. Rowe Price;
- Nevada's The Vanguard 529 Savings Plan, managed by Upromise Investments; and
- Utah Educational Savings Plan, managed by the agency of the same name.
- Arkansas' iShares 529 Plan, managed by Upromise Investments;
- Michigan's Education Savings Program, managed by TIAA Tuition Financing;
- Ohio's College Advantage 529 Savings Plan, managed by Ohio Tuition Trust Authority; and
- Virginia's CollegeAmerica, managed by American Funds.
- Kansas' Schwab 529 College Savings Plan, managed by American Century Investment Management;
- Minnesota's College Savings Plan, managed by TIAA Tuition Financing;
- Rhode Island's CollegeBoundfund (Advisor-sold), managed by AllianceBernstein; and
- Rhode Island's CollegeFoundfund (Direct-sold), managed by AllianceBernstein.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV