State Street Global Advisors replaced Vanguard as the investment manager of a Nevada 529 savings plan, and it aims to use ETFs to provide new investment options at a lower cost, according to an article in the Financial Times.
The new plan, called the SSgA Upromise 529 plan, is set to launch in April and will feature an all-SPDR ETF line-up, according to the report.
Apart from lower costs, another advantage ETFs can provide is added diversification, FT said. They also enable SSgA to tactically manage portfolios based on the ages of the participants in the plan, the publication said, citing Nevada’s chief deputy state treasurer Mark Mathers.
For more information, head over to FT.com.