MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Tuesday, February 21, 2012 SSgA Undercuts Vanguard With an ETF 529 State Street Global Advisors [profile] just beat out Vanguard [profile] for a nearly $1-billion 529 plan, thanks to an ETF-first. Yet the low-cost fund giant that Bogle built will still power a competing plan. Jackie Noblett of the Financial Times reports that in April SSgA will replace Vanguard as the investment manager for the $940-million Upromise College Fund, a direct-sold Nevada 529 college savings plan. Yet Vanguard will continue to run one of Nevada's three other nationwide, direct-sold 529s, the Vanguard 529 Savings Plan. Nevada also has a nationwide, advisor-sold 529. "What we’ve created now, with State Street coming in and being investment manager for the Upromise plan, is we’ve created a nice, diverse lineup of 529 plans. We have something for everyone,” Nevada chief deputy state treasurer Mark Mathers told the FT. The Upromise Investments-managed 529 plan will rebrand as the SSgA Upromise 529, with an all-SPDR ETF lineup, including target-date and target-risk asset allocation portfolios and options for savers to build portfolios, too. According to the FT, the SSgA Upromise 529 will be first all-ETF, direct-sold 529 program. The SSgA Upromise 529 will cost 49 basis points, down from 57 bps for the existing, Vanguard-powered Upromise offering. The remaining Vanguard 529 Savings Plan costs 28 bps. Printed from: MFWire.com/story.asp?s=39264 Copyright 2012, InvestmentWires, Inc. All Rights Reserved |