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LoneStar Investments
Selecting an investment portfolio may seem overwhelming for some. However, the LoneStar 529 Plan offers a number of investment options and strategies that you can tailor to align with your risk tolerance, time horizon and financial situation.
The Plan offers a wide range of portfolios with underlying investments managed by Artisan, Baird, DFA, Dodge & Cox, Eaton Vance, Federated Hermes, Neuberger Berman, New York Life, PIMCO, T. Rowe Price, and Vanguard. You can choose from among the Plan’s Target Enrollment Year Options, Risk-based and Individual Asset Class Options, or a combination of each.
Should your goals or needs change, you have the flexibility to rebalance your account or allocate future contributions to different portfolios. Under current federal regulations, account owners are allowed to change the allocation of existing assets twice per calendar year or whenever you name a new beneficiary.
You and your advisor select one of the following ten Target Enrollment Year Portfolios based on several factors, such as when you expect your beneficiary to need the funds, your risk tolerance and investment outlook. Once a portfolio is selected, your investments will stay in that portfolio until it is transferred to the Enrolled Years Portfolio or if you chose to make a new investment election to move it to another portfolio, whichever is earlier. You can choose to invest in one or any combination of these portfolios as well as the Risk-based and Individual Asset Class portfolios.
Hover over a pie chart below for details. The center of the chart shows asset allocations.
2038-2039 Portfolio
Currently invests primarily in equity and seeks capital growth within the portfolio.
2036-2037 Portfolio
Also currently invests primarily in equity and seeks capital growth within the portfolio.
2034-2035 Portfolio
Currently invests in a blended allocation of equity and fixed income, yet is still more heavily weighted toward equity investments seeking to capture further capital growth opportunities.
2032-2033 Portfolio
Currently invests in a blended allocation of equity and fixed income and seeks moderate capital growth and income.
2030-2031 Portfolio
Currently invests in an allocation tilted toward equity over fixed income.
2028-2029 Portfolio
Currently invests in a blended allocation of equity and fixed income with a heavier weight toward fixed income seeking to shift the investment focus more heavily toward capital preservation and income.
2026-2027 Portfolio
Currently invests in a blended allocation of equity and fixed income with a heavier weight toward fixed income.
2024-2025 Portfolio
Currently invests in a blended allocation of equity and fixed income with a heavy weight toward fixed income, as well as the inclusion of stable value seeking to provide additional income.
2022-2023 Portfolio
Currently invests primarily in fixed income, with the inclusion of some equity and some stable value. This portfolio seeks capital preservation and income.
Enrolled Years Portfolio
This is the last target enrollment year portfolio. This portfolio assumes that your beneficiary is enrolled in school and seeks to preserve capital and provide income to support withdrawals from the account.
1. Investments in the New York Life Guaranteed Interest Account are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency.
The Risk-based portfolios offer you the ability to choose investment options based on your risk tolerance. You can choose to invest in one or any combination of these portfolios as well as the Target Enrollment Year and Individual Asset Class portfolios.
Hover over a pie chart below for details. The center of the chart shows asset allocations.
Aggressive Allocation
Seeks long-term capital growth by investing in an asset allocation weighted heavily toward equity investments versus fixed income investments.
Balanced Allocation
Seeks moderate growth by investing in a balanced asset allocation somewhat weighted toward equity investments over fixed income investments.
Conservative Allocation
Seeks conservative growth by investing primarily in fixed income, with the inclusion of some equity and some stable value.
1. Investments in the New York Life Guaranteed Interest Account are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency.
Individual Asset Class portfolios allow you to create your own portfolio allocation by selecting from among select asset classes. You can also invest in any number of Individual Asset Class Portfolios alongside other investment in Target Enrollment Year or Risk-based portfolios.
Hover over a pie chart below for details. The center of the chart shows asset allocations.
Diversified Equity Portfolio
Seeks long‑term capital appreciation by investing its assets in equity investments.
Diversified Fixed Income Portfolio
Seeks low volatility and income from a diversified selection of fixed income investments.
U.S. Value Portfolio
Allocation – 100% Artisan Value Fund (APHLX)
Seeks long-term capital growth through value equity investments, which are those companies that are cash-producing and in strong financial condition, while selling at discounted prices to their expected intrinsic value.
U.S Growth Portfolio
Allocation – 100% T. Rowe Price Large Cap Growth (TRLGX)
Seeks long-term capital growth through growth equity investments, which are those companies with above-average expectations for earnings and cash flow growth.
U.S. Total Stock Market Portfolio
Allocation – 100% Vanguard Total Stock Market Index (VSMPX)
Seeks long-term capital growth through equity investments by tracking the returns of the U.S.
stock market.
Small-Cap Portfolio
Allocation – 100% DFA US Small Cap Portfolio (DFSTX)
Seeks long-term capital growth by investing in smaller companies, or those with low market capitalizations.
Active International Portfolio
Allocation – 100% Dodge & Cox International Stock (DODFX)
Seeks long-term capital growth and income by investing at least 80% of its assets in non-U.S. company equities.
Passive International Portfolio
Allocation – 100% Vanguard Total International Stock Market (VTPSX)
Seeks long-term capital growth through equity investments of developed and emerging non-U.S. companies.
Seeks exposure to emerging market growth via a high-quality approach.
Long-Term Fixed Income Portfolio
Allocation – 100% Vanguard Long-Term Treasury Index (VLGSX)
Seeks income by tracking the performance of the Bloomberg U.S. Long Treasury Bond Index.
Active Bond Portfolio
Allocation – 100% PIMCO Total Return (PTTRX)
Seeks income from a core bond holding made up of high-quality, intermediate-term bonds.
Passive Bond Portfolio
Allocation – 100% Vanguard Total Bond Market Index (VBMPX)
Seeks to track the performance of a broad, market‑weighted bond index.
High-Yield Fixed Income Portfolio
Allocation – 100% Federated Hermes Institutional High Yield (FIHBX)
Seeks high current income by investing primarily in lower-rated corporate fixed-income securities.
International Fixed Income Portfolio
Allocation – 100% PIMCO International Bond (USD-Hdg) (PFORX)
Seeks maximum total return through the use of intermediate maturity non-U.S. fixed income instruments.
DFA Inflation-Protected Securities
Allocation – 100% T. Rowe Price Large Cap Growth (DIPSX)
Seeks to provide inflation protection and earn current income consistent with inflation‑protected securities.
Short-Term Fixed Income Portfolio
Allocation – 100% Baird Short-Term Bond (BSBIX)
Seeks to provide a total return, net of fees, greater than the Bloomberg Barclays 1-3 Year U.S. Government/Credit Bond Index.
Socially Responsible Portfolio
Allocation – Vanguard FTSE Social Index (VFTAX)
Seeks capital growth while investing in large-and-midcapitalization stocks that meet certain environmental, social, and corporate governance (ESG) criteria.
Commodity Portfolio
Allocation – 100% PIMCO Commodity Real Return (PCRIX)
Seeks to capture performance potential of commodities through derivative exposure to the broad-based Bloomberg Commodity Index.
Real Estate Portfolio
Allocation – 100% Vanguard Real Estate Index (VGSNX)
Seeks to provide total return and diversification from stocks and bonds by investing in Real Estate Investment Trusts (REITs).
Capital Preservation Portfolio
Allocation – 100% New York Life Guaranteed Interest
Seeks to provide a stable flow of current income. The current investment selected for this portfolio is the New York Life Guaranteed Interest Account.
1. Investments in the New York Life Guaranteed Interest Account are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency.
The portfolios and their underlying investments involve investment risks that are described in the Plan Description. For example, prices of small- and mid-cap stocks often fluctuate more than large-company stocks. There are special risks inherent to international investing, including currency, political, social, and economic risks. Emerging market stocks are generally riskier than stocks in developing countries. Fixed income investing entails interest rate, credit, and inflation risks. Investments in specific industries or sections, such as real estate, have industry concentration risk.
The inception date of the current investment portfolios listed below is March 7, 2022. You can view historical performance of the portfolios prior to that date. You can also access historical performance of your account by logging in to your account.
The performance data quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s units, when redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted.
Performance data for each portfolio are based on the total return of a hypothetical account, net of the LoneStar 529 Plan program and administration fees.
Portfolio returns for periods less than 1 year are cumulative and are not annualized.
1. Expense ratios for each of the portfolios include underlying investment expenses and plan fees.
2. Although there are no investment expenses associated with the Capital Preservation Portfolio, the yield of the underlying investment, New York Life GIA (“GIA”) is reduced by 0.10% to compensate New York Life for operating, administrative, and marketing costs. This will reduce the return of the portfolios that invest in the GIA. The interest rate (Crediting Rate) for the GIA resets every six months on January 1 and July 1. The Net Crediting Rate for the GIA is currently 1.60%.
1. Expense ratios for each of the portfolios include underlying investment expenses and plan fees.
2. Although there are no investment expenses associated with the Capital Preservation Portfolio, the yield of the underlying investment, New York Life GIA (“GIA”) is reduced by 0.10% to compensate New York Life for operating, administrative, and marketing costs. This will reduce the return of the portfolios that invest in the GIA. The interest rate (Crediting Rate) for the GIA resets every six months on January 1 and July 1. The Net Crediting Rate for the GIA is currently 1.60%.
