California ScholarShare 529 Plan Launches Fossil Fuel Free Vanguard Fund
Contact: Quinn Eide, quinn@fossilfreeca.org
Sacramento, CA — July 24, 2026 —The ScholarShare Investment Board (SIB), under the California State Treasurer’s Office, has made a landmark update to the California ScholarScare 529 College Savings Plan by now offering a fossil fuel-free mutual fund to California families.
The change replaces Nuveen Large Cap Responsible Equity Fund with the Vanguard FTSE Social Index Fund.
The Nuveen Large Cap Responsible Equity Fund previously represented between 10-56% of the equity allocation in ScholarShare 529’s enrollment year portfolios (also called target or age-based portfolios). Following a comprehensive annual review, the SIB determined that Vanguard’s FTSE Social Index Fund offered stronger historical performance and lower fees. As a bonus, the FTSE fund addition meaningfully reduces fossil fuel exposure. The reduced fossil fuels came in response to dozens of public comments and over 800 signatures requesting this change. Note that the fossil fuel industry has historically provided among the lowest returns and highest volatility compared to other sectors of the US economy.
Of the reviewed ESG funds, Vanguard’s FTSE fund emerged as the strongest overall option when evaluating performance, volatility, fees, and fossil fuel exposure together. Vanguard also offers the most competitive fee structure at 7 basis points, significantly below Nuveen’s 17 basis points.
The decision was made by the board in January 2026 and the change went into effect on July 24th, 2026.
California State Treasurer and Chair of the SIB Fiona Ma, CPA said “The ScholarShare Investment Board has a responsibility to ensure California families have access to strong, affordable, and well-diversified investment options. This update reflects the Board’s careful, data-driven review of performance, fees, and long-term risk, resulting in an investment choice that strengthens ScholarShare 529’s competitiveness while supporting California’s broader efforts to reduce reliance on fossil fuels, all while maintaining rigorous fiduciary standards.”
“Our responsibility is to ensure ScholarShare 529 delivers strong, affordable investment options that reflect California’s values while meeting our fiduciary obligations,” said ScholarShare 529 Executive Director Cassandra DiBenedetto. “This update improves long-term performance potential, lowers fees for families, and reduces exposure to the volatility and long-term risks associated with the fossil fuel industry — consistent with California’s broader efforts to reduce reliance on fossil fuels. Importantly, it does so without sacrificing diversification or the rigorous investment standards families expect from the plan’s largest equity allocation.”
Advocates for fossil-free college savings welcomed the move as a major milestone.
Quinn Eide, Fossil Free California:
“This is a big win for California families who want their college savings to fund education, without bankrolling the biggest perpetrators of climate change. Removing Nuveen’s large-cap fund—which dominated ScholarShare’s age-based portfolios—shows that Treasurer Ma is listening and acting. We look forward to continued collaboration to fully align ScholarShare 529’s ESG options with fossil-free best practices.”
Katharine Bierce, Fossil Free California volunteer:
“I’ve lived through the “orange skies” of California in 2020. I’m inspired to see California taking the lead in lowering fossil fuel exposure in ScholarShare’s investment choices – which will also lower fees for Californians, too.”
Robyn Perry, Fossil Free California volunteer and parent:
“As an investing ScholarShare parent, I’m grateful to not have to choose between investing in my kids’ future and my commitment to a fossil-free future.”
Jessica Bryant, Mother Out Front MA volunteer and parent:
“Out-of-state families can take advantage of this Scholarshare ESG fund as well, making this a big win for families in California and across the country.”
Advocates note that additional opportunities remain to further strengthen ScholarShare 529’s ESG offerings, including reviewing remaining non-fossil-free equity and bond funds within the ESG age-based options. Although many states offer fossil-free static 529 options, currently, no state in the country has an enrollment date option that is completely fossil-free. This fund is a meaningful step forward for both families in California and families across the country as Americans are not restricted to their home-state’s plan.
For more information about the ScholarShare 529 College Savings Plan, visit: www.scholarshare529.com.
For more on the Fossil Free 529 campaign, visit: fossilfreeca.org/fossil-free-529-college-savings.