The Treasury Department released proposed guidance on eligible investments for Trump Accounts, which are tax-deferred savings accounts created for children to encourage long-term wealth accumulation. The guidance establishes criteria for what investment products may qualify as options within these accounts.
Under the proposed framework, eligible investments must be index funds designed to track broad segments of the U.S. or global equity markets using objective financial criteria. The Treasury Department has also implemented requirements that limit eligible investments to those carrying low expense ratios, among other qualifications. Officials stated that the emphasis on straightforward, low-cost investment vehicles would allow child account holders to benefit from decades of compound growth while preserving a larger portion of investment returns within their accounts.
Treasury Secretary Scott Bessent commented that the proposed rules aim to ensure every dollar saved for a child’s future goes toward wealth building rather than being diminished by fees. The guidance applies to Bank of New York Mellon, the current official manager of Trump Accounts, as well as to future trustees should families choose to transfer assets to alternative custodians.
Currently, Trump Account contributions are invested in exchange-traded funds tracking the S&P 500. The State Street SPDR Portfolio S&P 500 ETF (SPYM) serves as the default investment option. Additional investment options available to account holders include the iShares Core S&P 500 ETF (IVV), Vanguard Total Stock Market ETF (VTI), State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM), and iShares Core S&P Total U.S. Stock Market ETF (ITOT).
Account holders can monitor activity through a dedicated Trump Accounts app developed in partnership with Robinhood. Company officials have emphasized the accessibility of the platform for American families seeking to provide early investment exposure for their children.
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