529 Plan Choice: Bright start (TRLGX) vs Vanguard (VWUSX)

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Topic Author
despearado
Posts: 3
Joined: Tue Aug 11, 2020 9:46 pm

529 Plan Choice: Bright start (TRLGX) vs Vanguard (VWUSX)

Post by despearado »

Hello Bogleheads
I need to decide on a 529 for my two kids. I am in Dallas, TX and so state tax benefit is NOT a factor.

I have zeroed in on Brightstart (Illinois) and Vanguard (Nevada). Both offer good individual portfolios and expense ratios are comparable.

Now, I need to decide based on which of the two MFs is better?
TRLGX ( T. Rowe Price Instl Large Cap Growth) - in Bright start
OR
VWUSX ( Vanguard US Growth) - in Vanguard

TRLGX seems more consistent while VWUSX has done really well in the last couple of years. Have compared the two funds on various sites and overall their performances/ portfolios look almost the same to me.

Need your help with:
1. Do you have any insight on these two MFs ? Which one would you recommend?
2. Is there any thing about Bright start which makes it better/ worse than Vanguard 529?

thanks in advance!
rkhusky
Posts: 10217
Joined: Thu Aug 18, 2011 8:09 pm

Re: 529 Plan Choice: Bright start (TRLGX) vs Vanguard (VWUSX)

Post by rkhusky »

I would choose a Total Stock Market or a Total World fund or an age-based option. It's not a good idea to pick a fund based on how it has performed recently, since that can quickly change.
Living Free
Posts: 531
Joined: Thu Jul 19, 2018 7:31 pm

Re: 529 Plan Choice: Bright start (TRLGX) vs Vanguard (VWUSX)

Post by Living Free »

I also live in a no income tax state and use the vanguard plan from the state of Nevada and use their age based option. I would not use a factor fund.
Rudedog
Posts: 268
Joined: Wed Aug 01, 2018 3:15 pm

Re: 529 Plan Choice: Bright start (TRLGX) vs Vanguard (VWUSX)

Post by Rudedog »

Bright Start offers Vanguard Total Stock Market and S & P 500. We used Bright Start to get the Illinois tax deduction. Morningstar rates Bright Start very highly.
Finch868
Posts: 12
Joined: Sun Jul 19, 2020 2:09 pm

Re: 529 Plan Choice: Bright start (TRLGX) vs Vanguard (VWUSX)

Post by Finch868 »

We have used the Brightstart Index aged based option for all of our kids. These are made up of all Vanguard Index funds. Become more conservative as they grow older. They have all done very well.
Topic Author
despearado
Posts: 3
Joined: Tue Aug 11, 2020 9:46 pm

Re: 529 Plan Choice: Bright start (TRLGX) vs Vanguard (VWUSX)

Post by despearado »

Rudedog wrote: Wed Aug 12, 2020 8:57 am Bright Start offers Vanguard Total Stock Market and S & P 500. We used Bright Start to get the Illinois tax deduction. Morningstar rates Bright Start very highly.
For those who have used Bright start, how smooth is it to conduct transactions ( account opening, beneficiary change, adding/ withdrawing money)? Vanguard plan seems to be all online with robust customer service.
Finch868
Posts: 12
Joined: Sun Jul 19, 2020 2:09 pm

Re: 529 Plan Choice: Bright start (TRLGX) vs Vanguard (VWUSX)

Post by Finch868 »

Brightstart is also all online. I think very easy to manage, make changes, add contributions etc.
SchruteB&B
Posts: 363
Joined: Mon Jul 02, 2018 7:48 am

Re: 529 Plan Choice: Bright start (TRLGX) vs Vanguard (VWUSX)

Post by SchruteB&B »

Finch868 wrote: Wed Aug 12, 2020 11:18 pm Brightstart is also all online. I think very easy to manage, make changes, add contributions etc.
Yes, it is all online. Very easy, smooth transactions.
sycamore
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Joined: Tue May 08, 2018 12:06 pm

Re: 529 Plan Choice: Bright start (TRLGX) vs Vanguard (VWUSX)

Post by sycamore »

despearado wrote: Tue Aug 11, 2020 10:10 pm ...
Now, I need to decide based on which of the two MFs is better?
TRLGX ( T. Rowe Price Instl Large Cap Growth) - in Bright start
OR
VWUSX ( Vanguard US Growth) - in Vanguard
...
Need your help with:
1. Do you have any insight on these two MFs ? Which one would you recommend?
...
Welcome to the forum despearado!

I'd recommend a Total Stock Market fund over those two. TSM is passively-managed so no "manager risk" which is what comes with TRLGX and VWUSX.

Both TRLGX and VWUSX are large cap growth funds. I think it's better to invest in a wider range of stocks than just large cap growth.

TRLGX holds 64 stocks with 48% of its portfolio in the top 10 stocks. https://investor.vanguard.com/mutual-fu ... IntExt=EXT Some people think just 30 stocks is enough for diversification but I think hundreds would be better. 48% in 10 stocks is too much for me.

VWUSX holds 250 stocks with 40% of its portfolio in the top 10 stocks. https://investor.vanguard.com/mutual-fu ... olio/vwusx 250 stocks is better but 40% in the top 10 is again too much.

Good luck with whatever choice you make!
Topic Author
despearado
Posts: 3
Joined: Tue Aug 11, 2020 9:46 pm

Re: 529 Plan Choice: Bright start (TRLGX) vs Vanguard (VWUSX)

Post by despearado »

Thanks everyone who provided their comments and insight. It is very helpful.
Also, thanks for making me feel welcomed. I feel so happy to have found this forum.
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