"Sometimes you can find another 529 plan that has essentially the same make-up of mutual funds in another state, with lower fees; then it becomes compelling to make the move. You can expect the same pre-fee investment, for a higher post-investment outcome," said Hurley.
There's no prohibition against having multiple plans, either, so you could always just stop contributing to an in-state plan you don't like and open a new plan in another state, without moving any money and incurring switch fees and taxes.
Before making a switch, it may be possible to improve savings by reallocating the funds that are invested in a 529 that is rated "neutral" or "negative".
Many plans with options to allocate savings in large equity or bond mutual funds can be reworked to place all or most of the savings in one of these funds. A federal law allows reallocations as well as rollovers to take place no more than once a year.
Morningstar analysts' concerns with some of the "negative" plans were due to the inclusion of a few weak funds. They also largely contained funds groups like Blackrock, however, which provided more stable investment options.
If you are making a small investment, chances are that you won't get much of a tax benefit with your state's deductions. It may be worth shopping for an out-of-state plan with better performance.