A Program of the Tennessee Department of Treasury · David H. Lillard, Jr., State Treasurer

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Investment Options

With TNStars, you have the power to decide how you will invest your money.

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Self-Selected vs. Age-Based

At the broadest level, you have three options when choosing how to invest in your TNStars account: self-selected, age-based, or a combination of the two. Here’s how they work:

Self-Selected

Choosing the Self-Selected track lets you control how your savings are invested.

TNStars offers diverse investment options.

Taking the do-it-yourself route allows you to select the option or options that best meet your goals, risk tolerance and timeline.

One consideration is your propensity to tolerate risk. Are you aggressive, conservative, or somewhere in between? Use this tool to help you understand where you may fall on a spectrum.

Self-Selected Options

Age-Based

With the Age-Based track, your money is automatically managed.

We factor in the child’s current age and the number of years before they leave for college. Depending on this age, contributions are placed in pre-determined age bands.

Your investment automatically shifts from more aggressive-to-conservative as your child nears college age. You can invest all or part of your contributions through the age-based option.



Age-Based Option

Age-Based Option

If you prefer to be more hands-off, the age-based option allows you to “set it and forget it” by automatically adjusting from more aggressive to more conservative as your beneficiary gets closer to college age. The age-based option is made up of 10 age bands.

Asset Allocation for the Age Based Option and Participant Costs

Age-Based option is a blend of stocks and bonds that become more conservative as your child grows

Age-Based Investment Option: Expenses for the Age Bands within the Age-Based Investment Option represent the applicable weighted average of the expenses of the Underlying Investments, based on data available in the most recent prospectus of the applicable Underlying Investment(s) as of June 5, 2019, and assuming an allocation among the Underlying Investments as described in Section 15 of the Disclosure Brochure.

Review the Disclosure Brochure for the asset allocation of the underlying mutual funds that make up each of the age bands within the age based investment option.

Self-Selected Investment Options

The following charts categorize the self-selected investment options available through TNStars in three ways.

Growth

Through investment in stock portfolios, these options are designed to seek maximum returns for investors with higher risk tolerance.

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Balanced

Through a blend of stocks and bonds, these options are designed to balance risk and return for investors with moderate risk tolerance.

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Conservative

Through a higher concentration in fixed income, these options provide low-to-moderate growth for investors with a lower risk tolerance.

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Growth Options

Through investment in stock and specialty portfolios, these options are designed to seek maximum returns for investors with higher risk tolerance.


Investment Option Name Underlying Mutual Fund Underlying Mutual Fund Ticker Symbol Estimated Underlying Mutual Fund Expense Program Management Fee Total Annual Asset-Based Fee
TN Aggressive Growth Fund PRIMECAP Odyssey Aggressive Growth Fund POAGX 0.650% 0.200% 0.850%
TN Emerging Markets Stock Fund Emerging Markets Stock Index Fund Admiral Shares VEMAX 0.140%% 0.200% 0.340%
TN Total International Stock Fund Vanguard Total International Stock Index Fund VTSNX 0.080% 0.200% 0.280%
TN Real Estate Fund Vanguard Real Estate Index Fund VGSLX 0.120%% 0.200% 0.320%
TN Small Cap Fund Vanguard Small-Cap Index Fund VSCIX 0.040% 0.200% 0.240%
TN US Large Cap Value Fund DoubleLine Shiller Enhanced CAPE-I DSEEX 0.0540% 0.200% 0.740%
TN Total Stock Market Fund Vanguard Total Stock Market Fund VITSX 0.030% 0.200% 0.230%

Balanced Option

Through a blend of stocks and bonds, this option is designed to balance risk and return for investors with moderate risk tolerance.


Investment Option Name Underlying Mutual Fund Underlying Mutual Fund Ticker Symbol Estimated Underlying Mutual Fund Expense Program Management Fee Total Annual Asset-Based Fee
TN Balanced Fund Vanguard Wellington Fund VWENX 0.160% 0.200% 0.360%

Conservative Options

Through a higher concentration in fixed income, these options are designed to provide low-to-moderate growth for investors with a lower risk tolerance.


Investment Option Name Underlying Mutual Fund Underlying Mutual Fund Ticker Symbol Estimated Underlying Mutual Fund Expense Program Management Fee Total Annual Asset-Based Fee
TN Total International Bond Fund Vanguard Total International Bond Index Fund VTIFX 0.070% 0.200% 0.270%
TN High-Yield Corporate Fund Vanguard High-Yield Corporate Fund VWEAX 0.130% 0.200% 0.330%
TN Core Plus Bond Fund Western Asset Core Plus Bond Fund WACPX 0.450% 0.200% 0.650%
TN Total Bond Fund Vanguard Total Bond Fund VBTIX 0.035% 0.200% 0.235%
TN Short-Term Corporate Fund Vanguard Short-Term Corporate Bond Index Fund VSTBX 0.050% 0.200% 0.250%
TN Short-Term Inflation Protected Securities Fund Vanguard Short-Term Inflation Protected Securities Index Fund VTSPX 0.040% 0.200% 0.240%
TN Money Market Fund Vanguard Federal Money Market Fund VMFXX 0.110% 0.200% 0.310%

Self-Selected Investment Options: The estimated Underlying Investment expenses is based on data available in the most recent prospectus of the applicable Underlying Investment(s) as of September 30, 2021.

Investment Performance Disclosures The performance data represents past performance and, as such, current performance may be lower or higher. Past performance is not indicative and is no guarantee of future performance. The principal value of your TNStars Account and the investment return may fluctuate, and the Units of Interest, when redeemed, may be worth more or less than the amount you contributed.

The overall performance of an Account may vary based on the overall allocation to Investment Options chosen by the Account Owner. Additionally, because in an Age-Based Strategy, the Program will automatically transfer from one Age Band to the next, overtime, based on the Beneficiary’s age, the Account may be invested in more than one Age Band during the performance reporting period.

Review the Disclosure Brochure for more information.