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Trump Accounts list low-cost index ETFs, with SPYM as default

The U.S. Treasury said Trump Accounts, launched July 4, will fund eligible children’s accounts, and it named SPYM, a 0.02% expense S&P 500 ETF, as the default option at launch.

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The U.S. Treasury Department has released a list of low-cost index funds that can be selected for Trump Accounts, a tax-advantaged program for U.S. children under age 18, with the official launch set for July 4, according to MarketBeat Ratings.

Under the program, the government will provide $1,000 for eligible babies born between 2025 and 2028, and family and friends may add up to $5,000 per year, while the Treasury’s fund list was published on July 1.

At launch, the State Street SPDR Portfolio S&P 500 ETF, SPYM, will serve as the default investment, the article notes. It is a passively managed fund tracking the S&P 500 with an expense ratio of 0.02%, and the piece cites performance of more than 10% year to date and more than 20% over the trailing year.

The article also points to the iShares Core S&P 500 ETF, IVV, as another option on the list, noting its 0.03% expense ratio and that it performs almost identically to SPYM and the S&P 500. It adds that the Treasury plans to add four additional funds in the coming months.

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