The U.S. Treasury Department has announced the initial investment options that will be available for families to utilize within Trump Accounts, a program designed to help invest in children’s futures. The program is scheduled to officially launch on July 4.
Default Investment Fund
Upon the program’s launch, all contributions made to Trump Accounts will be automatically invested in the State Street SPDR Portfolio S&P 500 ETF, known by the ticker symbol SPYM. This exchange-traded fund (ETF) is a low-cost option that aims to mirror the performance of the S&P 500 Index.
According to the Treasury Department, the SPYM ETF was selected because it offers broad exposure to the U.S. stock market. It also maintains expenses below the 0.1% expense ratio limit stipulated by the One Big Beautiful Bill Act, the legislation that established Trump Accounts.
Future Investment Options
While the SPYM ETF will serve as the default investment when Trump Accounts become operational, the Treasury Department has indicated plans to introduce several additional investment funds in the coming months. These will become available once the platform’s functionality supports broader investment choices.
Four other low-cost ETFs, each tracking broad market indexes, are slated for future availability within Trump Accounts. These include:
- iShares Core S&P 500 ETF (IVV): This ETF provides another avenue for investors to track the S&P 500 Index, a widely recognized benchmark for the U.S. stock market, representing 500 large U.S. companies.
- Vanguard Total Stock Market ETF (VTI): Tracking the CRSP U.S. Total Market Index, this ETF encompasses large-, mid-, and small-cap segments of the U.S. market.
- State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM): This ETF follows the S&P 1500 Composite Index, offering exposure to a wider array of 1,500 companies, including large-, mid-, and small-cap firms.
- iShares Core S&P Total U.S. Stock Market ETF (ITOT): This ETF tracks the S&P Total Market Index, also covering the large-, mid-, and small-cap components of the U.S. equity market.
The Treasury Department stated that it will issue further announcements once the investment election functionality is live on the platform. The department will also provide detailed instructions for parents and legal guardians, who are responsible for managing their children’s accounts, on how to adjust investment allocations.
Helene Elliott is the senior reporter for News Raise. She covers Science news. She also has a keen interest in photojournalism. Helene holds a nomination for the prestigious Red Smith Award. She is married to author Dennis D’Agostino, a former publicist with the New York Mets.
