State Street Global Advisors [profile] just beat out Vanguard [profile] for a nearly $1-billion 529 plan, thanks to an ETF-first. Yet the low-cost fund giant that Bogle built will still power a competing plan.

Jackie Noblett of the Financial Times reports that in April SSgA will replace Vanguard as the investment manager for the $940-million Upromise College Fund, a direct-sold Nevada 529 college savings plan. Yet Vanguard will continue to run one of Nevada's three other nationwide, direct-sold 529s, the Vanguard 529 Savings Plan. Nevada also has a nationwide, advisor-sold 529.

"What we’ve created now, with State Street coming in and being investment manager for the Upromise plan, is we’ve created a nice, diverse lineup of 529 plans. We have something for everyone,” Nevada chief deputy state treasurer Mark Mathers told the FT.

The Upromise Investments-managed 529 plan will rebrand as the SSgA Upromise 529, with an all-SPDR ETF lineup, including target-date and target-risk asset allocation portfolios and options for savers to build portfolios, too. According to the FT, the SSgA Upromise 529 will be first all-ETF, direct-sold 529 program.

The SSgA Upromise 529 will cost 49 basis points, down from 57 bps for the existing, Vanguard-powered Upromise offering. The remaining Vanguard 529 Savings Plan costs 28 bps. 

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