What investment options are inside a 529 plan and how much do they cost?

Most 529 plans offer a menu of mutual funds and index-based portfolios, plus static risk-based options (aggressive, moderate, conservative) and age-based or target-enrollment tracks that automatically shift toward safer holdings as college nears. Costs matter a lot over 18 years: look at each portfolio's underlying expense ratio plus any state program management fee. Direct-sold plans bought straight from the state are generally far cheaper than advisor-sold plans that add commissions or higher fees. Because you generally choose from the plan's fixed lineup rather than any security you want, comparing low-cost index-based tracks across a few strong plans is worthwhile. Morningstar publishes annual ratings of 529 plans that can help you compare quality and cost.