Trump Accounts launch July 4 with funds defaulting into a low cost S&P 500 ETF. See eligibility, contribution limits and fund options.
Trump Accounts are new tax advantaged investment accounts for children that launch on July 4, and every dollar placed in one will automatically go into the State Street SPDR Portfolio S&P 500 ETF (SPYM) unless a parent later chooses otherwise. The Treasury Department picked that fund because it is the cheapest way to track the S&P 500.
At a Glance
- Default investment: State Street SPDR Portfolio S&P 500 ETF (SPYM), expense ratio of 0.02 percent
- Newborns from 2025 through 2028 get a one time $1,000 Treasury deposit
- Parents, relatives, friends and employers can add up to $2,500 a year, capped at $5,000 total annually
- Contributions open July 5 through a dedicated app, no IRS paperwork needed
- Over 50 companies, including Bank of America, JPMorgan, Intel and Uber, have pledged employee contributions
Why the S&P 500 Fund Won Out
Treasury officials say cost was the deciding factor. SPYM charges just 2 basis points, making it the least expensive S&P 500 tracking ETF on the market, and it still delivers wide exposure to major US companies. Until parents actively select another option, every contribution, whether from a parent, grandparent or employer, lands in this fund by default.
Treasury Secretary Scott Bessent framed the choice as part of a broader philosophy behind the program. Speaking on Fox, he said the accounts are built around low cost index funds so that, in his words, everyone gets to participate in the American Dream. He also pointed to what he called an approaching wave of innovation tied to the initiative.
Other Funds Parents May Be Able to Choose
Treasury has cleared several additional index funds for eventual use once account holders gain the ability to redirect their money. These alternatives were selected using the same low cost standard applied to the default fund.
| Fund | Ticker | Type |
|---|---|---|
| SPDR Portfolio S&P 500 ETF | SPYM | Default option, S&P 500 tracker |
| iShares Core S&P 500 ETF | IVV | S&P 500 tracker |
| Vanguard Total Stock Market ETF | VTI | Broad US stock market |
| SPDR Portfolio S&P 1500 Composite Stock Market ETF | SPTM | Broad US stock market |
| iShares Core S&P Total US Stock Market ETF | BITO39.SA | Broad US stock market |
Treasury has not yet announced when parents will be able to shift funds among these choices, only that the option is coming in the months ahead.
Who Qualifies and How Money Gets In
The accounts, formally called 530A accounts, were created under the Working Families Tax Cuts law. Babies born between 2025 and 2028, spanning Trump's second term, each receive a one time $1,000 seed deposit from the federal government. On top of that, contributions from parents, relatives, friends and employers can flow in starting July 5, with an annual cap of $5,000 per child and a $2,500 limit tied to individual contributors.
Parents will manage everything through an official app rather than filing IRS paperwork, which Treasury says is meant to simplify participation. More than 50 employers, including Bank of America, JPMorgan, Intel and Uber, have already committed to contributing on behalf of workers' children, and some philanthropists have pledged separate donations. Bessent also said roughly 20 states may join a
