The Treasury has tapped two BlackRock exchange traded funds to anchor Trump Accounts, the federal government's new savings program for children, with Vanguard lined up as a backup option ahead of the July 4 launch.
Which Funds Made the Cut
BlackRock's iShares Core S&P 500 ETF (IVV) and iShares Core S&P Total U.S. Stock Market ETF (ITOT) were picked as the primary vehicles for the accounts. Both funds charge an expense ratio of just 0.03 percent, among the cheapest options in the industry for broad market exposure. Vanguard Total Stock Market ETF (VTI) was named as an alternate, giving families a second low cost index option if it gets folded into the program later.
How the Seed Money Works
Every child born between 2025 and 2028 with a valid Social Security number will have $1,000 deposited into an investment account on their behalf by the Treasury. The money is meant to jumpstart long term savings well before a child is old enough to work or invest on their own.
| Fund | Ticker | Role in Program | Expense Ratio |
|---|---|---|---|
| iShares Core S&P 500 ETF | IVV | Primary option | 0.03% |
| iShares Core S&P Total U.S. Stock Market ETF | ITOT | Primary option | 0.03% |
| Vanguard Total Stock Market ETF | VTI | Alternate option | Not specified |
Employers Sweetening the Deal
A number of investment firms and corporations, 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 employer opts in, though the benefit depends entirely on where a parent works.
BlackRock Chairman and CEO Larry Fink framed the program as a head start for young savers. "By giving younger Americans the opportunity to start investing earlier, Trump Accounts can help millions build long term financial security," he said.
Who Actually Benefits From Trump Accounts
The accounts target a fairly narrow window: only children born between 2025 and 2028 qualify for the automatic $1,000 deposit. Families outside that birth range, or without a Social Security number on file, will not see the seed money land automatically. Whether employer matching programs expand beyond early adopters like BlackRock remains an open question as the July 4 launch approaches.