Passing savings to account owners

Admin fees drop for all options; changes for three Vanguard funds

Good news for account owners — costs associated with my529 just dropped even lower, thanks to a reduction in fees for all account owners and a share class change that benefits many account owners. Additionally, some account owners will see changes for Vanguard funds available in the Customized options.

my529’s scale allows the plan to offer investment options at a low rate. For an account owner, those cost savings could mean the ability to cover more of their beneficiary’s education expenses. “The savings investors realize through the fee reduction and the new share class can increase an account’s potential for growth over time,” said Richard Ellis, my529 executive director.

Administrative Asset Fee reduction

Effective August 1, 2024, my529 will reduce its Administrative Asset Fee by one basis point. The fee cut affects all my529 investment options, benefiting all accounts. This change is expected to save account owners a collective $2.36 million annually.

Investment Option	Prior Fee	New Fee	Cost per $1,000  invested annually
Target Enrollment Date	0.100%	0.09%	$0.90
Static	0.100%	0.09%	$0.90
Customized	0.130%	0.120%	$1.20

Low fees support the mission of my529 to help families invest for education—they enable account owners to direct more of their plan dollars toward qualified education expenses like tuition, fees, books and supplies.

Share class change

As of May 2, 2024, my529 qualified for a lower-cost share class in the Vanguard Total International Stock Index Fund (VTPSX/now VTISX, following the change in share class), decreasing the underlying fund expense by three basis points. The fund is featured in several my529 investment options. my529 is passing the savings on to its account owners.

Around 78% of my529 account owners are invested in an investment option containing the Vanguard Total International Stock Index Fund. my529 estimates that these account owners will collectively save more than $947,000 annually.

“Account owners invested in the fund through my529 will now pay an average of 58% less than what a retail investor would pay for the same fund,” said Ellis.

Underlying Fund	Previous Fund Expense	New Fund Expense
Vanguard Total International Stock Index Fund	0.08%	0.05%*
* 0.05% equals $.50 for every $1,000 invested.

my529 pools together the money from account owner contributions to their 529 accounts and invests it in underlying investments. The total value of the my529 Trust’s assets invested in the Vanguard Total International Stock Index Fund has surpassed $3 billion, a threshold that qualifies my529 for a lower-cost share class.

The Vanguard Total International Stock Index Fund appears in all 12 my529 Target Enrollment Date portfolios, as well as in six Static investment options. Within the Customized investment options, the fund is available as a single-fund portfolio, the my529 Total International Stock Index (UTVIX).

With the shift to VTISX, my529 qualifies for the lowest-cost share class available for 18 out of 20 Vanguard funds used in my529 investment options.

Underlying fund expense changes

my529 is also passing along a reduction in underlying fund expenses for the my529 High-Yield Corporate Fund (UTVHX) single-fund portfolio, which corresponds to the Vanguard High-Yield Corporate Fund (VWEAX). Effective May 24, 2024, Vanguard dropped the fund expense by one basis point. The portfolio is available as a selection within the Customized investment options.

Another Customized investment option offering, the my529 Developed Markets Index (UTVDX), comprised of the Vanguard Developed Markets Index Fund (VDIPX), increased its fund expense as of April 26, 2024. Vanguard raised expenses for the underlying fund by one basis point.

Underlying Fund	Corresponding Single-Fund Portfolio	Previous Fund Expense	New Fund Expense
Vanguard High-Yield Corporate Fund	my529 High-Yield Corporate Fund	0.130%	0.120%*
Vanguard Developed Markets Index Fund	my529 Developed Markets Index	0.040%	0.050%**
*   0.120% equals $1.20 for every $1,000 invested. ** 0.050% equals $0.50 for every $1,000 invested.

See our fee schedules at my529.org.