Two underlying funds see reduction in Operating Expense Ratios

The Operating Expense Ratios have decreased for two underlying funds used in my529’s investment options.

The Vanguard Group Inc. at the end of February lowered the Operating Expense Ratios for the Emerging Markets Stock Index Fund (VEMRX) and the International Value Fund (VTRIX). See table.

The Emerging Markets Stock Index Fund is included as an underlying fund in the Age-Based Aggressive Global, Age-Based Moderate and Age-Based Conservative investment options. It is also found in two static investment options—the 70% Equity/30% Fixed Income and the 20% Equity/80% Fixed Income. The reduction in the VEMRX Operating Expense Ratio brings down the asset-based fees for these age-based investment options. However, because VEMRX represents only a small percentage of the allocations for the two static options, the asset-based fees for those investment options did not drop.

The International Value Fund was available as an underlying fund in the Customized Static Investment Option, but it has been closed to new investments since July 25, 2011.

See the effect of the changes to the Operating Expense Ratios by viewing the Asset Fee Structure Table and the Approximate Cost of a $10,000 Investment Table on the my529 website.