Short answer: At launch, Trump Account contributions are invested by default in the State Street SPDR Portfolio S&P 500 ETF, ticker SPYM. Treasury has also selected four additional low-cost U.S. stock-index ETFs for the program.
What is the default Trump Account investment?
The default is SPYM, an exchange-traded fund designed to track the S&P 500. Treasury selected it for broad exposure to large U.S. companies and expenses below the program's fee limit.
See Treasury's official investment-lineup announcement for the current list and implementation details.
Which other funds has Treasury selected?
Treasury announced four additional ETFs:
- IVV: iShares Core S&P 500 ETF
- VTI: Vanguard Total Stock Market ETF
- SPTM: State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF
- ITOT: iShares Core S&P Total U.S. Stock Market ETF
Treasury said responsible parties may be able to choose among the additional options as the investment-election feature is made available. Check the official app for the controls currently available to your account.
Can you choose individual stocks?
No. During the growth period, the account is limited to eligible mutual funds and ETFs that track indexes made up primarily of U.S. companies. Individual stocks, leveraged funds, cash, and money-market funds are not ordinary eligible investments under the program rules.
The IRS summary of the proposed eligible-investment regulations explains the index, leverage, and fee requirements.
How much can the investment fund charge?
An eligible fund generally cannot have annual fees and expenses above 0.10% of the invested balance. At that rate, the fund expense would equal up to $10 per year for each $10,000 invested. Other account-level charges, if any, should be reviewed in the official account materials.
Who holds and manages the account?
Treasury oversees the initial program. It designated BNY as its financial agent, and Treasury's announcement identifies Robinhood as the brokerage provider and initial trustee. Treasury retains control over the app and the operations of these initial accounts.
Read the official custody announcement for those roles. Grifin is not the custodian or trustee of the government program.
Can the value of a Trump Account go down?
Yes. These funds invest in the stock market, so the account value can rise or fall. Diversification and low fees do not prevent losses, and historical returns do not guarantee future results. Families should be prepared for market volatility over the account's long time horizon.
What happens to the investments when the child turns 18?
Starting January 1 of the year the beneficiary turns 18, most special growth-period rules end and traditional IRA rules generally apply. The account does not become ordinary spending money automatically, and taxes or an additional early-distribution tax may apply to withdrawals.
For the distribution rules, read when money can be withdrawn from a Trump Account. For setup timing, read how long opening a Trump Account takes.
This article is for educational purposes only and is not tax, legal, or investment advice. Grifin is not affiliated with the U.S. government or the Trump Accounts program. For current official information, visit TrumpAccounts.gov.