Treasury Adds State Street, BlackRock and Vanguard ETFs to Trump Account Options

The Treasury Department said Wednesday that contributions to Trump Accounts will be invested in exchange-traded funds from State Street, BlackRock and Vanguard. The State Street SPDR Portfolio S&P 500 ETF will be the default investment option, the department said.

Officials added that the fund was selected to provide broad exposure to the U.S. stock market while maintaining expenses below the statutory fee limitation. Four additional ETFs were included in the lineup ahead of the July 4 launch: the iShares Core S&P 500 ETF, the Vanguard Total Stock Market ETF, the State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF, and the iShares Core S&P Total U.S. Stock Market ETF.

and Eligibility Bank of New York

Mellon will manage the initial accounts. Trump Accounts, also known as 530A accounts, are open to any U.S. child under 18 with a Social Security number. The accounts include a one-time $1,000 pilot program contribution from the Treasury for babies born from 2025 through 2028.

After July 4, parents, guardians, grandparents and others can contribute up to $5,000 a year. A growing number of companies, including State Street and BlackRock, have pledged to match the accounts' $1,000 Treasury deposit for children of employees.

"Trump Accounts offer a meaningful opportunity for families to begin investing early on behalf of their children," Rodney Comegys, chief investment officer and head of global equity at Vanguard Capital Management, said in a statement. An earlier Vanguard research note noted that the 100% equities investment options do not gradually de-risk toward a bond allocation like other account types, such as 529 college savings plans.