The Treasury Department on Wednesday afternoon finalized the investment lineup for Trump Accounts, the new 530A savings vehicles set to open for contributions on July 4. The selection includes five low-cost index ETFs, with the State Street SPDR Portfolio S&P 500 ETF (SPYM) designated as the default option for all contributions until account holders can choose their own allocations.
The four additional funds named by Treasury are the iShares Core S&P 500 ETF (IVV), the Vanguard Total Stock Market ETF (VTI), the State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM), and the iShares Core S&P Total U.S. Stock Market ETF (ITOT). Expense ratios across the menu range from 0.02% to 0.03%, well under the 0.1% fee cap set by Congress for the program.
Until Treasury completes the account-allocation functionality, every dollar contributed to a Trump Account will be invested in the default S&P 500 fund, regardless of which asset manager a family prefers. The department said it will announce when investment election tools become available and provide instructions for changing allocations.
BlackRock CEO Larry Fink framed the inclusion of two iShares ETFs as an opportunity to reach younger investors. “By giving younger Americans the opportunity to start investing earlier, Trump Accounts can help millions build long-term financial security,” Fink said in a statement. Elise Terry, head of U.S. iShares at BlackRock, added that even small investments started early can compound meaningfully over time.
Vanguard Chief Investment Officer Rodney Comegys described the accounts as “a meaningful opportunity for families to begin investing early on behalf of their children,” echoing the firm’s emphasis on broad, low-cost index investing. Vanguard also said it intends to support rollovers into Trump Accounts once Treasury provides further guidance on the process.
Both BlackRock and Vanguard have committed to matching the government’s $1,000 contribution for their own employees’ children, joining a growing list of employers making similar pledges. BlackRock’s charitable arm has also funded financial-literacy campaigns tied to the program, including grants for state-level children’s savings initiatives.
The fund lineup answers one key question for advisors, but leaves several unresolved. Treasury has not yet clarified how account balances will factor into financial-aid formulas, or whether contributions made before a child turns 18 can later be converted to a Roth IRA. The late Wednesday announcement also raises a technical question: when will families be able to choose among the five funds rather than default into the S&P 500 option?
For advisors weighing Trump Accounts against 529 plans and UTMA accounts, the low-cost structure and government match may be attractive, but the unresolved tax and aid implications remain significant. As the July 4 launch approaches, firms like Franklin Templeton have also announced matching contributions, signaling growing employer interest in the program.
