Treasury picks BlackRock's IVV and ITOT, plus Vanguard's VTI, to seed Trump Accounts with $1,000 per eligible child starting July 4.
Trump Accounts are new federally seeded investment accounts for children, launching July 4, and the Treasury has picked BlackRock as the primary fund manager, with two low cost index funds set to hold the government's initial $1,000 deposit for eligible kids.
What the Treasury Picked
The Treasury settled on two BlackRock exchange traded funds to anchor the program: the iShares Core S&P 500 ETF (IVV) and the iShares Core S&P Total U.S. Stock Market ETF (ITOT). Both charge an expense ratio of 0.03%, among the cheapest options in the ETF world. Vanguard was named as a backup fund provider, with its Vanguard Total Stock Market ETF (VTI) available as an alternate.
How Trump Accounts Work
Every child born between 2025 and 2028 with a valid Social Security number qualifies for a $1,000 seed deposit from the federal government, placed into an investment account in their name. The idea is to give kids a head start on investing decades before they would otherwise open a brokerage account.
Several employers have said they will pile on top of that initial deposit. BlackRock itself is among a group of companies and investment firms pledging to match the government's $1,000 contribution for their own employees' children, effectively doubling the seed money for those families.
| Fund | Provider | Role in Program | Expense Ratio |
|---|---|---|---|
| iShares Core S&P 500 ETF (IVV) | BlackRock | Primary option | 0.03% |
| iShares Core S&P Total U.S. Stock Market ETF (ITOT) | BlackRock | Primary option | 0.03% |
| Vanguard Total Stock Market ETF (VTI) | Vanguard | Alternate option | Not specified in announcement |
Why Low Cost Index Funds Were Chosen
Both BlackRock funds track broad U.S. stock benchmarks rather than trying to beat the market through active stock picking. IVV mirrors the S&P 500, the 500 largest U.S. companies, while ITOT casts a wider net across the total U.S. stock market, including smaller companies. Vanguard's VTI serves a similar purpose as a total market fund. Choosing index funds with rock bottom fees means more of the government's seed money and any added employer contributions stay invested rather than eaten up by management costs over the years these accounts are expected to grow.
What This Means for Families
Larry Fink, BlackRock's chairman and chief executive, framed the program as a way to get young Americans investing before they even understand what a brokerage account is.
