Our costs are among the lowest in the industry, allowing you to save more for higher education,” said Char Gross, who leads Vanguard Education Savings Group. “And the benefit doesn’t stop there. Each dollar you save is a dollar less that your child will have to borrow.”

Cost reduction chart


This chart shows the potential impact Vanguard’s low-cost funds can have on your savings over time compared with the industry average expense ratio. The example assumes an initial investment of $3,000 and a monthly contribution of $200. The return assumption is 6%.

At Vanguard, you could save $2,850 over 18 years based on our average annual expense ratio (0.17%) for age-based portfolios, compared with the industry average expense ratio of 0.51%.

This hypothetical illustration does not represent any particular investment nor does it account for inflation. There may be other material differences between investment products that must be considered prior to investing. Numbers are rounded. The Vanguard 529 Plan is sponsored by the State of Nevada, but it’s available to investors in all 50 states. The plan offers a variety of individual portfolios and three age-based options, which hold asset allocations that gradually become more conservative as the beneficiary nears college age.

The table below shows how the annualized expense ratios changed for each investment option.

Investment option

Former expense ratio

New expense ratio

Savings (bps)

Age-based options

Aggressive option

0.19%

0.17%

0.02%

Moderate option

0.19%

0.17%

0.02%

Conservative option

0.19%

0.17%

0.02%

Individual portfolios

Equity portfolios:

500 Index Portfolio

0.21%

0.19%

0.02%

Aggressive Growth Portfolio

0.19%

0.17%

0.02%

Growth Index Portfolio

0.28%

0.26%

0.02%

Mid-Cap Index Portfolio

0.26%

0.24%

0.02%

Morgan™ Growth Portfolio

0.47%

0.45%

0.02%

Small-Cap Index Portfolio

0.26%

0.24%

0.02%

Total International Stock Index Portfolio

0.37%

0.35%

0.02%

Total Stock Market Index Portfolio

0.21%

0.19%

0.02%

Value Index Portfolio

0.28%

0.26%

0.02%

Windsor™ Portfolio

0.46%

0.44%

0.02%

Balanced portfolios:

Conservative Growth Portfolio

0.19%

0.17%

0.02%

Growth Portfolio

0.19%

0.17%

0.02%

Moderate Growth Portfolio

0.19%

0.17%

0.02%

STAR® Portfolio

0.49%

0.45%

0.04%

Fixed income portfolios:

High-Yield Bond Portfolio

0.34%

0.32%

0.02%

Income Portfolio

0.19%

0.17%

0.02%

Inflation-Protected Securities Portfolio

0.27%

0.25%

0.02%

Total Bond Market Index Portfolio

0.24%

0.22%

0.02%

Short-term reserves portfolio:

Interest Accumulation Portfolio

0.19%

0.17%

0.02%


Start (or keep) saving

Get the basics on college saving. Then learn more about 529 plans, including the benefits and features of The Vanguard 529 Plan. When you’re ready, you can open an account online.

If you already own a Vanguard 529 College Savings Plan, you’ll receive more details on these changes in the next several weeks.

Notes:
For more information about The Vanguard 529 College Savings Plan, call 866-734-4533 or obtain a Program Description, which includes investment objectives, risks, charges, expenses, and other information; read and consider it carefully before investing. Vanguard Marketing Corporation, Distributor and Underwriter.


If you are not a Nevada taxpayer, consider before investing whether your or the designated beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s qualified tuition program.


The Vanguard 529 College Savings Plan is a Nevada Trust administered by the Board of Trustees of the College Savings Plans of Nevada, chaired by the Nevada State Treasurer.

The Vanguard Group, Inc., serves as the Investment Manager and through its affiliate, Vanguard Marketing Corporation, markets and distributes the Plan. Ascensus Broker Dealer Services, Inc., serves as Program Manager and has overall responsibility for the day-to-day operations, including effecting transactions. The Plan’s portfolios, although they invest in Vanguard mutual funds, are not mutual funds.

Investment returns are not guaranteed, and you could lose money by investing in the plan. Account owners assume all investment risks, including the potential for loss of principal, as well as responsibility for any federal and state tax consequences.