[Kinga]

What are the pros and cons of choosing a Vanguard fund versus an American fund for a 529 college savings plan?

I’m trying to decide which option might be better in terms of fees, investment options, performance, and overall ease of use.

If you’ve had experience with either or both, I would appreciate hearing your thoughts.

How did the fund impact your savings growth over time, and were there any unexpected benefits or drawbacks you encountered?

Thanks for sharing any advice or insights!

[Charlotte]

Low fees for Vanguard. High fees for American.

[Jeffery]

Vanguard funds are generally passive, index funds. Americans Funds are active, and thus have higher fees.

[Jack]

Vanguard funds are bought and American funds are sold. Who is trying to sell you an American fund and what’s in it for them?

[Nicole]

No clue. Which specific funds? Fees? Minimum investment? Does 529 give state tax credits? How is website interface? Tons of variables.

[Jay]

1) American Funds = high loads. In general FI groups don’t even consider them…

2) Active manage funds
3) Hard to do apples to apples comparison.
4) Best performance VNG fund over 10 years was VRGEX with 15.94% return &.07% expense, best American GAFEX at 13.27 with .30% expense ratio.

[Jim]

American funds has load fees and high fees on top of that. Vanguard has no load and low fees.

[Author]

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