The money in a Trump Account is invested in low-cost S&P 500 or U.S. equity index mutual funds and ETFs, managed by the U.S. Treasury.
You don't pick the investments. The government picks them for you, within specific guidelines set by the law.
What Is the S&P 500?
The S&P 500 is an index of the 500 largest publicly traded companies in the United States. Apple, Microsoft, Amazon, Google, JPMorgan, Walmart. When you invest in an S&P 500 index fund, you're essentially buying a tiny piece of all of them at once.
Historically, the S&P 500 has averaged around 10% annual returns over long periods. No investment is guaranteed, but broad index funds like this are considered one of the most reliable long-term wealth-building approaches available. That's why the projected growth numbers for Trump Accounts can look so significant over 18 years.
What Are the Cost Limits?
The law caps the expense ratio on Trump Account investments at 0.10% per year. That's very low. Most index funds already operate in this range. The cap is there to make sure the fees don't eat into your child's returns over time.
For context, a 0.10% expense ratio on a $10,000 account means you pay $10 a year in fees. That's it.
Who Manages the Money?
The U.S. Treasury is the custodian of Trump Accounts until your child turns 18. They select the approved investment funds and oversee the accounts.
After July 2026, families will eventually be able to roll accounts over to participating financial institutions. That's where companies like Grifin come in. We plan to offer that rollover option once it's available.
Can I Choose Different Investments?
No. Trump Account funds are limited to government-approved S&P 500 and U.S. equity index funds. If you want broader investment options for your child, a custodial account or a custodial Roth IRA would give you more flexibility.
Some families use a Trump Account for the government seed and long-term index fund exposure, and a separate brokerage account for more specific stock picking. Both can work together.
Is the Stock Market Safe for My Child's Money?
Stock markets go up and down. In any given year, the S&P 500 can drop significantly. But over an 18-year window, which is what most Trump Account holders have, historical data strongly favors growth. Short-term volatility matters less when you're not touching the money for nearly two decades.
The $1,000 government seed alone, invested at 6% annually for 18 years, grows to roughly $2,850. Add $5,000 a year in contributions and the compounding effect becomes substantial.
For more on how the program works overall, see our full explainer on Trump Accounts and the Invest America landing page.
Find out in 30 seconds if your child qualifies at investamericaquiz.com.
Still have questions? Here's everything people are asking about Trump Accounts.
This post is for educational purposes only and is not tax, legal, or investment advice. Grifin is not affiliated with the U.S. government or the Invest America program.
