Morningstar Inc., a leading provider of independent investment research in North America, today ranked two of the Virginia College Savings Plan’s 529 programs among the “Best Five” in the country – making Virginia the only state to keep its top spots in the rankings for two years running and the only one to have two programs within the coveted top five ranking.

“After a challenging year in the financial markets, the news from Morningstar affirms our efforts to offer a variety of quality investment portfolios to our Virginia Education Savings Trust (VEST) participants across the country,” said Mary G. Morris, Executive Director of the Virginia College Savings Plan. “We are extremely pleased to have two programs in the Morningstar top five – and will use the recognition to inspire us to work even harder for our owners.”

The annual rankings are based on the respected financial analysis company’s in-depth reviews of the country’s 529 plans, with a focus on the plans’ fees, investment quality, asset allocation and flexibility. Virginia’s CollegeAmerica and Virginia Education Savings Trust were spotlighted in the Morningstar report “as the only carryovers from last year’s ‘Best-Five’ list.”

VEST, Virginia’s direct-sold program, was praised by Morningstar for offering “plenty of diversification” and age-based portfolios with “a compelling mix of solid actively managed and index offerings from such shops as Vanguard, Templeton and Capital Research.” Morningstar also said they “like the plan’s sensible mix of static-blend options and a smart selection of single fund options that not only cover the three core asset classes, but give investors access to real estate investment trusts and TIPS… [and] a nice price tag that ranges from 0.31% to 0.54% rounds out the appealing (VEST) package.”

CollegeAmerica, Virginia’s adviser-sold program in partnership with the American Funds, and only advisor-sold program in the top five, was deemed a “topnotch choice” among 529 programs, Morningstar said, adding, “[f]ees are attractive, too.” CollegeAmerica “remains a favorite for its large selection of mostly first-rate American Fund mutual funds that give investors access to a broad array of asset classes, including emerging markets, small-cap foreign stocks and foreign fixed-income securities,” Morningstar said.

VEST and CollegeAmerica are open year-round, with no age or residency restrictions, to help individuals and families plan and pay for higher education expenses. Savings in 529 plans grow tax-free and remain tax-free as long as they are used to pay for tuition, fees, textbooks, computers and other qualified college expenses. Virginia taxpayers also receive up to a $4,000 state income tax deduction for each Virginia 529 account each year, with an unlimited carry forward.

The Virginia College Savings Plan – Virginia529.com – is the largest 529 plan in the country, with over 1.9 million account owners and over $20 billion in assets under management as of March 31, 2009.