Trump Accounts Launch: Kids’ Funds Default to Low-Cost S&P 500 ETF
The U.S. Treasury says Trump Accounts for children will launch on July 4 with all initial contributions automatically invested in the SPYM low-cost S&P 500 ETF by default; later, account holders can diversify into other index funds. Trump Accounts (530A) offer a $1,000 seed for babies born 2025–2028, plus up to $2,500 annually in contributions (with a $5,000 cap). Corporate pledges, philanthropists, and states are boosting funding, including gifts from Micron’s Mehrotra, Ray Dalio, Brad Gerstner, Michael and Susan Dell, and Nicki Minaj; more than 6 million people have signed up, with 86% of accounts tied to families earning under $200k. A White House–level celebration and opening-bell event are planned as the program begins.