Utah’s plan again receives Gold rating from investment research firm
Strong investment options and attractive underlying funds. Convenience and flexibility for the account owner. These features—and not luck—are why my529 has earned top honors from Morningstar for the 13th straight year. Utah’s educational savings plan was one of two plans nationwide to receive the Analyst Rating™ of Gold for 2023.
Morningstar released its annual 529 industry report November 2, assessing 54 plans for their underlying investment quality and selection process, investment team, asset allocation methodology, state oversight and fees. Analysts noted that Gold-rated plans like my529 stand out from their peers with their investment option construction, stewardship and low costs.
Morningstar Research Services LLC, a leading provider of independent investment research, is a subsidiary of Morningstar Inc.
The Morningstar analysis commended my529’s efforts to provide plan enhancements for account owners, and not simply maintaining the status quo. Analysts praised the ease and flexibility of the investment approach for the Target Enrollment Date option, which gradually moves the investment allocation from aggressive to conservative as the beneficiary grows. Morningstar again acknowledged the Customized Age-Based option, where account owners or their advisors can design a portfolio according to their individual goals, time horizon and risk appetite.
Additionally, the report underscored my529’s state oversight, adept investment team and knowledgeable circle of consultants, advisors and board members.
my529’s run of 13 consecutive top ratings is an accomplishment no other 529 plan has matched within the industry.
To put the time in perspective: Over the same 13 years, a kindergartner could have grown up, graduated from high school, enrolled in college, university or technical college—and used their my529 funds to pay for qualified education expenses like tuition, books, room and board or internet access.
“We appreciate Morningstar’s continued recognition of my529 as a top-tier 529 plan,” said Richard Ellis, my529 executive director.
“We are committed to our mission to help families in Utah and across the country invest for their educational journey,” said Ellis. “And that dedication informs everything we do at my529—from offering a range of low-cost investment options to providing a stellar account owner experience. We are proud to deliver innovative solutions for the 529 investor.”
Read Morningstar’s 529 industry report.
Important Legal Notice
my529 was rated “Gold” or its equivalent by Morningstar 2004-2007, 2009, and 2011-2023; rated “Silver” or its equivalent in 2008 and 2010. The Morningstar Analyst RatingTM 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 (process); an assessment of the individuals managing the plan’s investment options (people); the stewardship practices of the plan’s administration and parent firm (together, parent); and whether the plan’s investment options are a good value proposition compared to its peers (price). 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 54 plans in 2023.
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.
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