Frank Carr
Trump Accounts are the federal government's new child savings program, launching July 4, that deposits $1,000 in seed money into an investment account for every eligible child born between 2025 and 2028, with BlackRock and Vanguard funds serving as the underlying investments.
At a Glance
- Trump Accounts launch July 4 as a government backed child savings program
- Treasury selected two BlackRock ETFs and named a Vanguard fund as an alternate option
- Each eligible child receives a $1,000 deposit from the federal government
- Children must have a valid Social Security number and be born between 2025 and 2028
- Some employers, including BlackRock, plan to match the government's contribution for staff
Which Funds Were Chosen
The Treasury tapped BlackRock's iShares Core S&P 500 ETF (IVV) and iShares Core S&P Total U.S. Stock Market ETF (ITOT) as the primary investment vehicles for the new accounts. Both funds charge an expense ratio of just 0.03%, keeping costs minimal for the young account holders. Vanguard Total Stock Market ETF (VTI) was named as an alternate fund partner, giving the program a second option built around broad U.S. market exposure.
| Fund | Provider | Role in Program | Expense Ratio |
|---|---|---|---|
| iShares Core S&P 500 ETF (IVV) | BlackRock | Primary selection | 0.03% |
| iShares Core S&P Total U.S. Stock Market ETF (ITOT) | BlackRock | Primary selection | 0.03% |
| Vanguard Total Stock Market ETF (VTI) | Vanguard | Alternate option | Not specified in the announcement |
How the Seed Money Works
Every child with a valid Social Security number born between 2025 and 2028 qualifies for a $1,000 deposit from the Treasury into their Trump Account. The structure resembles a custodial investment account, giving children a head start in the market well before they can open one themselves.
Employer Matching Adds to the Pot
Several companies, BlackRock among them, have said they will match the government's $1,000 contribution for their own employees' children. That effectively doubles the starting balance for families whose employers opt in, though the matching benefit depends entirely on individual companies' policies rather than being a universal feature of the program.
What Larry Fink Says the Accounts Could Mean
BlackRock Chairman and CEO Larry Fink framed the accounts as a way to get younger Americans investing sooner. He said the program
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