my529 earns Morningstar Gold for 2020
Utah’s my529 has earned Morningstar’s top rating for 10 years straight, a consecutive run longer than any other plan in the 529 industry.
Morningstar released its annual report on 529 plans in late October, naming my529 as one of three plans to receive the Analyst Rating™ of Gold. Analysts assessed 61 plans for their asset allocation methodology, underlying investment quality and selection process, fee structure and stewardship.
View the report here.
Gold-rated plans were singled out for their level of oversight; low fees; strong stewardship; and exceptional investment options, including consistent and well-reasoned age-based tracks. The report indicated that both state residents and nonresidents would be well-served by the Gold rated plans.
Analysts highlighted my529’s investment options, noting that Utah’s plan had fleshed out its lineup of fixed-allocation options.
In their in-depth plan evaluation of my529, Morningstar praised the plan’s Customized Age-Based portfolio and emphasized my529’s consistent fee reductions and efforts to enhance the plan. They also commended my529’s partnerships with nonprofit organizations to help families in low-income communities build education savings and increase college-bound identities.
my529 was rated ‘Gold’ or its equivalent by Morningstar 2004-2007, 2009, and 2011-2020; rated ‘Silver’ or its equivalent in 2008 and 2010. The Morningstar Analyst Rating™ for 529 college savings plans is not a credit or risk rating. To determine an analyst rating, Morningstar’s analysts consider four factors: the plan’s strategy and investment process; an assessment of the individuals managing the plan’s investment options; the stewardship practices of the plan’s administration and parent firm; and whether the plan’s investment options are a good value proposition compared to its peers. Plans are then assigned forward-looking ratings of ‘Gold,’ ‘Silver,’ ‘Bronze,’ ‘Neutral,’ and ‘Negative.’ The top three ratings (Gold, Silver, and Bronze) indicate that Morningstar’s analysts think highly of a 529 plan; the differences correspond to the level of analyst conviction in the ability of a plan’s investment options to collectively outperform their respective benchmarks and peers through time, within the context of the level of risk taken. Morningstar does not rate all 529s every year; it rated just 61 of 92 plans in 2020.
Analyst ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst ratings are based on Morningstar analysts’ current expectations about future events and therefore involve unknown risks and uncertainties that may cause Morningstar’s expectations not to occur or to differ significantly from what was expected. Morningstar does not represent its analyst ratings to be guarantees.
Please visit Morningstar.com for more information about the analyst ratings, as well as other Morningstar ratings and fund rankings.