Treasury Announces Default ETF and Future Options for New Trump Accounts
The Treasury Department said the State Street SPDR Portfolio S&P 500 ETF will be the default investment for Trump Accounts launching on July 4, and outlined additional low-cost ETFs that will become available in coming months.
The Treasury Department disclosed on Wednesday that the new Trump Accounts program, set to begin on July 4, will automatically place contributions into the State Street SPDR Portfolio S&P 500 ETF (SPYM). The ETF, described as a low-cost fund tracking the S&P 500 Index, meets the expense-ratio limit of 0.1% established by the One Big Beautiful Bill Act.
Treasury officials said additional investment choices will be added after the platform’s functionality is expanded. The four ETFs slated for future availability are the iShares Core S&P 500 ETF (IVV), Vanguard Total Stock Market ETF (VTI), State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM) and iShares Core S&P Total U.S. Stock Market ETF (ITOT). Each of these funds tracks broad U.S. market indexes covering large, mid and small-cap stocks.
The agency will issue guidance on how parents and guardians can adjust their children’s investment allocations once the selection feature is live.