Each investment option consists of one or more underlying funds.
The underlying investments are managed by The Vanguard Group andÂ Dimensional Fund Advisors, Pacific Investment Management Company (PIMCO), or are held in trust by my529 at Sallie Mae Bank and U.S. Bank.
Account owners do not own the underlying investments that constitute any my529 investment option.
Read the Program Description for more information.
Underlying Fund Operating Expense Ratios
Vanguard and Dimensional charge an Operating Expense Ratio for each underlying mutual fund. Expense ratios do not appear on my529 account statements because Vanguard and Dimensional deduct the fees from the applicable underlying funds (and because your client does not own shares in the funds). The performance and market values of a my529 account are net of any fund expense ratios.
The Operating Expense Ratios in the tables below apply to the Vanguard and Dimensional funds included as underlying investments in my529.
To view a Fund Fact Sheet or Prospectus click the icon next to the fund.
As of September 30, 2019, Vanguard managed more than $5.7 trillion in U.S. mutual fund and exchange-traded fund assets. The firm offers 191 funds to U.S. investors and 230 additional funds in non-U.S. markets.
|Underlying Fund||Ticker Symbol||Operating Expense Ratio||Fund Fact Sheet||Prospectus|
|Institutional Total Stock Market Index Fund||VITPX||0.020%|
|Institutional Index Fund||VIIIX||0.020%|
|Value Index Fund1||VIVIX||0.040%|
|Growth Index Fund1||VIGIX||0.040%|
|Mid-Cap Index Fund||VMCPX||0.030%|
|Small-Cap Index Fund||VSCPX||0.030%|
|Small-Cap Value Index Fund1, 2||VSIIX||0.060%|
|Small-Cap Growth Index Fund1, 2||VSGIX||0.060%|
|FTSE Social Index Fund1||VFTAX||0.140%|
|Total International Stock Index Fund||VTPSX||0.070%|
|Developed Markets Index Fund||VDIPX||0.040%|
|International Value Fund2, 3||VTRIX||0.380%|
|International Growth Fund1, 2||VWILX||0.320%|
|Emerging Markets Stock Index Fund2||VEMRX||0.080%|
|Short-Term Investment-Grade Fund||VFSIX||0.070%|
|Short-Term Bond Index Fund||VBIPX||0.040%|
|Short-Term Inflation-Protected Securities Index Fund1||VTSPX||0.040%|
|Total Bond Market Index Fund||VBMPX||0.030%|
|High-Yield Corporate Fund1, 2||VWEAX||0.130%|
|Total International Bond Index Fund||VTIFX||0.070%|
As of September 30, 2019, Dimensional managed $579 billion for investors worldwide, with offices around the globe. They offer investment solutions across asset classes, including global equities, fixed income, and real estate investment trusts (REITS).
|Underlying Fund||Ticker Symbol||Operating Expense Ratio||Fund Overview||Prospectus|
|Global Allocation 60/40 Portfolio1, 4||DGSIX||0.280%|
|Global Allocation 25/75 Portfolio1, 4||DGTSX||0.260%|
|U.S. Large Cap Value Portfolio1, 5||DFLVX||0.270%|
|U.S. Small Cap Value Portfolio1, 2||DFSVX||0.520%|
|Real Estate Securities Portfolio1, 2, 4||DFREX||0.180%|
|U.S. Sustainability Core 1 Portfolio1, 4||DFSIX||0.250%|
|International Value Portfolio1, 2, 5||DFIVX||0.430%|
|Global Equity Portfolio1, 4||DGEIX||0.300%|
|One-Year Fixed Income Portfolio1||DFIHX||0.170%|
|Five-Year Global Fixed Income Portfolio1||DFGBX||0.270%|
1The fund is available in the Customized Age-Based and Customized Static investment options only.
2An investment allocation to this fund may not exceed 25 percent in an account. For the Customized Age-Based investment option, this cap applies to the allocation for each age bracket. Therefore, the total operating expense ratio will reflect the weighted allocation to the underlying investments.
3The fund was available in the Customized Static investment option only and was closed to new investments beginning on July 25, 2011. However, upon making an investment option change, the 25 percent allocation cap in an account will apply.
4The total operating expense ratio reflects a fee waiver pursuant to a Fee Waiver Agreement in effect through February 28, 2020. The total operating expense ratio may increase if the Fee Waiver Agreement is not extended beyond February 28, 2020.
5The total Operating Expense Ratios reflect a permanent, contractual Fee Waiver Agreement with Dimensional Fund Advisors LP.
PIMCO Interest Income Fund
The PIMCO Interest Income Fund, a stable value fund, is run by Pacific Investment Management Company (PIMCO), a Newport Beach, California, investment firm with $1.88 trillion in assets under management as of September 30, 2019.
PIMCO Interest Income Fund focuses on preserving principal and providing liquidity while generating steady returns for my529 account owners saving for higher education. The fund invests in high-quality government and corporate bonds with short- and intermediate-term maturity dates.
The investment management fee for the fund is 0.119 percent. In the future, the management fee could be higher or lower depending on the total invested assets under management.
Read theÂ PIMCO Interest Income Fund Fact SheetÂ for more information.
All money invested in the FDIC-Insured investment option, and in the FDIC-insured accounts embedded in the age-based investment options, is allocated to the FDIC-insured accounts held in trust by my529 at Sallie Mae Bank and U.S. Bank, collectively referred to as “the Banks.”
Sallie Mae Bank, a wholly owned subsidiary of SLM Corporation, has operated as an industrial bank in Utah since 2005. The bank had approximately $31.2 billion in assets as of September 30, 2019. For more information about Sallie Mae Bank, visit salliemae.com/banking.
U.S. Bank National Association, based in Minneapolis, Minnesota, has been chartered since 1863. U.S. Bank had $488 billion in assets as of September 30, 2019. For more information about U.S. Bank, visit usbank.com.
Contributions to and earnings on the FDIC-Insured investment option are allocated between the Banks according to the following percentages: Sallie Mae Bank (90 percent) and U.S. Bank (10 percent).This money is insured by the FDIC on a pass-through basis to each account owner at each Bank up to the maximum amount set by federal law, which is $250,000. The amount of FDIC insurance provided to an account owner is based on the total of (1) the value of an account owner’s investment in the FDIC-insured account at each Bank plus (2) the value of other accounts held (if any) at each Bank, as determined by the Banks and by FDIC regulations.
The return on contributions to the FDIC-insured accounts is expressed as an annual percentage yield (APY) paid in the form of interest. The interest paid is a floating rate that is a 90/10 blend of the interest paid by each of the Banks based on recognized benchmarks for short-term interest rates.