Morningstar, the Chicago-based mutual fund tracker, released its annual report card on 529 college savings plans. The 529 plans of Maryland and Alaska, both managed by Baltimore’s T. Rowe Price, were ranked among the six best. (Both plans held the same honor last year.)
According to Morningstar’s report released late October: “These T. Rowe-run plans are built upon a chassis of well-executed funds. The age-based options' asset allocation is more equity-heavy than the norm and the expense ratios are higher than other direct-sold plans', most of which contain indexed funds. But college savers are getting an excellent set of actively managed funds run by a very strong, tested team.”
Other top-ranked plans are Ohio’s CollegeAdvantage, Utah’s Vanguard 529, Utah’s Educational Savings Plan, and Virginia’s CollegeAmerica.