MW Where can I invest my kid's 'Trump account' money? The Treasury Department just answered that question.

Andrew Keshner

The default fund was selected for broad exposure to the U.S. stock market

Days ahead of the "Trump account" launch, the Treasury Department has announced the lineup on investment choices.

The money in "Trump accounts" has to be invested in low-cost index funds - and now parents and investors are learning which funds they can actually use.

All money in the accounts will start out in the State Street SPDR Portfolio S&P 500 ETF SPYM, the Treasury Department said Wednesday. The announcement comes days ahead of the anticipated July 4 launch of the accounts, which are meant to give American children an early start on building wealth. Formally known as 530A accounts, they essentially function as IRAs for kids, and account holders can't access the money until they turn 18.

More than 6 million children had been signed up for the accounts as of last month. That includes nearly 1.5 million accounts for newborns that will receive $1,000 in government-funded seed money. The accounts are open to U.S. citizen children under the age of 18.

The SPYM fund "was selected to provide broad exposure to the U.S. stock market while maintaining expenses well below the statutory fee limitation," according to Treasury's announcement.

Though the money will start in the fund, it doesn't have to stay there in the long run. The Treasury Department unveiled four other funds on the starter menu: the iShares Core S&P 500 ETF IVV, the Vanguard Total Stock Market ETF VTI, the State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF SPTM and the iShares Core S&P Total U.S. Stock Market ETF ITOT.

The Treasury Department said it's working on the ability to shift money over to the other funds in the coming months. Until then, the money will stick in the default fund.

State Street Investment Management said in a statement that Trump accounts are supposed to make investing simple and long-lasting.

"Getting there starts here, by giving children a straightforward entry point into investing and helping families harness the power of long-term, low-cost exposure to the growth of the U.S. economy from the beginning," State Street CEO Yie-Hsin Hung said.

The SPYM fund has a 0.02% gross expense ratio, according to its prospectus. Its top five holdings are Nvidia (NVDA), Apple $(AAPL)$, Microsoft $(MSFT)$, Amazon.com (AMZN) and Alphabet $(GOOGL)$ $(GOOG)$.

Even as more specifics come into focus, the big question is how many families will open the accounts. There are still many parents who are unaware of the accounts, while others may just leave the $1,000 seed money in the account and contribute to other accounts for their kids, such as 529 accounts or custodial brokerage accounts.

-Andrew Keshner

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July 02, 2026 10:50 ET (14:50 GMT)

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