I'm curious to hear whether anyone has any experience with this product. I know there have been posts asking about ETFs in 529s, and this seems like one of the few options. My first take is that one of the main advantages of ETFs (generally low costs) is eliminated by the hefty fee (.40 basis pts I think) added to the ETF expense by the state. Since the product is only available through Registered Investment Advisors (RIAs), I assume that they will add another fee to the mix. If they charge 50 basis pts (about 1/2 to 1/3 of normal charges) the total cost for the program now exceeds most drect sold plans and is about the same as an American Fund C Share.
The other advantages of ETFs, such as the ability to trade during the day, use stop-loss orders, sell covered calls, etc., is also lost in this vehicle. Any other assessments that make this appear more attractive?
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David Hollands, CFP
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