iShares offers thour types of plans based on the amount of time you have until your child goes to child, the risk profile or desired asset allocation, around your own customized portfolio and on the preservation of your initial principal. The funds provide exposure to emerging market equities, fixed income assets, foreign equities, REITs and U.S. equities.
The SSgA 529 plans also come in four options based on the specific college date, risk assessment, the opportunity to build your own custom portfolio with the listed ETFs available and a low-risk portfolio.
However, it should be noted that due to re-balance restrictions, the ETFs within the plans may not be traded frequently – participants may only shift money across investments once per year.
For past stories in this series, visit our “What is an ETF?” category.
Max Chen contributed to this article.