529 Plan Vanguard Interest Acc Portfolio/Nevada Short term Reserves fund

Devo · October 2023

Q for the community. Vanguard's Interest Accumulation Portfolio (a choice I'm considering for the 529 plan) is in Nevada Short Term Reserves fund. That has a benchmark of 90% in 3 month Tbills. However, its YTD return is 1.83% Why? Why is it so hard to just stuff some Tbills in ? Appreciate if anyone can help. @ybb I've looked through your website on 529s and it was very helpful. ALso bogleheads has a similar question about why this Nevada plan is a stinker?

https://investor.vanguard.com/accounts-plans/529-plans/profile/4528

yogibearbull · October 2023

VG Interest Accumulation Portfolio looks like a stable-value (SV) fund within 529. It owns a combo of insurance contracts, institutional CDs and a big chunk in VMFXX. Its 2.63% yield is nothing to write home about even for the SV funds. But if you go back to the years of ZIRP, it probably did better than m-mkt funds and T-Bills. Vanguard probably designed this "camel by committee" to meet the requirements of state 529s.

Good to know that 529 material at the YBB site was helpful.

https://www.bogleheads.org/forum/viewtopic.php?t=396160
https://investor.vanguard.com/accounts-plans/529-plans/profile/4528

Devo · October 2023

Thank you @ybb.

Any users here who use NY State Vanguard 529 and what would you recommend to be the best way to capture Money Market rates/short-term TBills within the Vanguard 529s?

yogibearbull · October 2023

I checked NY 529. There isn't anything beyond VG Accumulation Portfolio (SV) for liquid cash. There is no brokerage window to access T-Bills.
https://www.nysaves.org/home/which-investments/individual-portfolios.html

Devo · October 2023

Thank you once again. maybe the yields will reset slowly higher.

Howdy, Stranger!

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529 Plan Vanguard Interest Acc Portfolio/Nevada Short term Reserves fund

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