TD Ameritrade 529 College Savings Plan, Omaha, Neb., will soon offer environmental, social and governance portfolios, along with its core traditional investing options.
TD Ameritrade Holding Corp. announced Thursday that its $1.3 billion 529 plan will be the first in the U.S. to offer socially aware portfolios, according to a news release.
"This will be a welcome improvement for those in the thick of investing and saving college funds for their children who are seeking strategies to better align with both their investing objectives and their values," said Dara Luber, senior manager of retirement, in a news release. "There is growing demand to invest in companies with stronger ESG practices, particularly among the younger generations."
TD's 529 plan is one of four plans in the $5.2 billion Nebraska Educational Savings Trust, Lincoln, and offers 25 investment options. It is administered by John Murante, Nebraska's state treasurer, and available nationally.
The ESG portfolios will be rolled out Nov. 18 and will be offered through both direct-to-consumer and registered investment adviser TD Ameritrade channels. The investment structure will be non-proprietary with no annual maintenance fees, no account minimums and use only passive investments.
