i don't know what you invested in-- it may be that your account is diversified across stocks and bonds so you don't get the best returns or the worst returns of the stock market (so, for example, you may have lost less than others over the last week).

If you don't like the options under the VA 529 then i would invest in the Utah plan-- plenty of good low cost options there and you could put as much as you want into the stock market.

UGMA/UTMA would count against financial aid more than a 529 plan, just FYI. And also for financial aid for any pre-college private school costs.

We opted to open 529s for both out kids. We plan to invest until they have about $50k in their account and then switch to some other type of account that can be used for our retirement or their college. What if your DD decides to take the money and run? What is stopping her from blowing her UGMA or UTMA on a new car? Can you put decide how she uses her money when the time comes (I'm really not sure on this that is why I ask)?

My daughter turned 1 and we got another $700 in gifts we want to invest. We are debating whether to put it in her 529 or open an UGMA/UTMA custodial account.

As background, last year we put $5,000 for college in her 529 college plans. We live in VA and did the VA one.
We noticed the return rate for last year was only about 9%.
S&P index went up about 19%.

So it it better to open an UGMA or UTMA custodial account and invest in that for better returns? I know the first $950 of earnings are not taxed, then at some point kid gets taxed at parent's income bracket (ours is 28% now), kid can use it for non-college purposes at 18, etc.
Or just keep it in the 529 since the earnings are not taxed?

Because our daughter is so young, we have 17+ years to invest and we're wondering where to invest, if we're going to put in about $5,000 yearly.

Thanks!