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Products September 28, 2010
Fees Cut for The Vanguard 529 College Savings Plan
September 28, 2010 (PLANSPONSOR.com) - Vanguard will reduce expense ratios on The Vanguard 529 College Savings Plan by nearly half on some portfolios.
Reported by Rebecca Moore
According to a Vanguard news release, those invested in one of the plan’s three age-based options will see their all-in costs reduced from 0.44% (or $4.40 per $1,000 invested) to 0.25% (or $2.50 per $1,000 invested). Those invested in one of the plan’s 19 individual portfolios will see their all-in costs reduced from between 0.44% and 0.66% ($4.40-$6.60 per $1,000 invested) to between 0.25% and 0.55% (or $2.50-$5.50 per $1,000 invested).
Vanguard says more than 100,000 clients may benefit from an estimated $8.5 million in annual savings. The new expense ratios become effective October 15, 2010.
The Vanguard 529 Plan is sponsored by Nevada and open to any investor, and as assets have increased, Vanguard has worked with the state and program manager Upromise Investments, Inc. to deliver cost savings to plan investors, the announcement said. Vanguard also recently partnered with College Savings Iowa to reduce its all-in plan expenses by one-third.