The U.S. Treasury announced today the investment options available for Trump accounts, including a default fund at launch and four additional index funds that will become accessible in the coming months.
All contributions to Trump accounts will initially be placed in the State Street SPDR Portfolio S&P 500 ETF (NYSE:SPYM), which tracks the performance of the S&P 500 index. The Treasury selected this fund to provide exposure to the U.S. stock market while keeping costs within the legal fee cap.
The Treasury also chose four additional index ETFs for the program: the iShares Core S&P 500 ETF (NYSE:IVV), the Vanguard Total Stock Market ETF (NYSE:VTI), the State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (NYSE:SPTM), and the iShares Core S&P Total U.S. Stock Market ETF (NYSE:ITOT). These funds were chosen to cover key segments of financial markets while maintaining low investment expenses.
The SPYM fund will serve as the default investment for all Trump accounts at launch. The Treasury plans to add functionality in the coming months that will allow parents or guardians to allocate funds among the additional investment options. Until this feature is available, all contributions will remain in the default fund.
The Treasury stated that it will announce the availability of the investment selection feature and provide instructions for account holders who wish to change their investment allocations.
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