The grades are in—my529 scores top marks from Morningstar with the coveted Analyst Rating™ of Gold for 2022.
Morningstar released its annual 529 industry report Wednesday, naming Utah’s plan as one of only two Gold-rated plans. Morningstar Research Services LLC, a leading provider of independent investment research, is a subsidiary of Morningstar Inc.
Gold-rated plans were distinguished from their peers by their high level of stewardship, low fees and carefully constructed investment options.
Morningstar analysts highlighted my529’s Target Enrollment Date investment portfolios, as well as the Customized Age-Based option, where account owners or their advisors can design their own investment approach.
In a separate state-by-state analysis, Morningstar noted my529’s robust menu of underlying funds, experienced investment team (which serves as investment manager rather than outsourcing to a larger firm), and expert circle of advisors, consultants and board members.
my529 has garnered Morningstar’s top rating for 12 consecutive years, which is longer than any other plan in the industry.
A dozen years is enough time for a first grader to have grown up, graduated from high school, and enrolled in college, university or technical college—and covered qualified education expenses with their my529 account.
Important Legal Notice
my529 was rated “Gold” or its equivalent by Morningstar 2004-2007, 2009, and 2011-2022; 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 2022.
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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