Thursday, September 9, 2010

Emerging Markets now available to 529 plans

It's been impossible to customize the allocation of Emerging Markets in a 529 college savings plan portfolio... until now. You can now invest in the iShares MSCI Emerging Markets Portfolio (EEM) via the Arkansas/iShares 529 Plan. Downside? A 1.10% annual fee, ouch! Compare that to Vanguard's Emerging Markets Stock ETF (VWO) at 0.27% which also has better tracking. Granted, there would be a markup for 529 administration and the sponsoring state, but it would still be about half of what the iShares version costs. Well at least we have the option now...

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