Trump Accounts are launching. Here's how the money will be invested.

Trump Accounts are launching. Here's how the money will be invested. Jennifer Schonberger · Senior Reporter Wed, July 1, 2026 at 10:15 PM GMT+2 3 min read ^GSPC IVV With Trump Accounts set to officially launch on July 4, the US Treasury Department is detailing where the money in those accounts will be invested.

At launch, all funds in a Trump Account will be automatically invested in the State Street SPDR Portfolio S&P 500 ETF ( SPYM ), which tracks the performance of the S&P 500 index. That includes contributions by parents and others to the child's account. That fund was selected as the default investment because it is the lowest-cost S&P 500 ETF, according to the Treasury Department, with an expense ratio of only 2 basis points, while also offering broad exposure to the US stock market.

Key to the Treasury's selection of funds was that the vehicles were the lowest cost for the public. Other low-cost index ETFs eligible for Trump accounts include 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 US Stock Market ETF (ITOT). In the coming months, the Treasury Department says parents will be able to choose how to allocate funds across other investment options.

Until then, all contributions will be invested by default in the State Street fund. "Trump Accounts are going to be invested in low-cost index funds," Treasury Secretary Scott Bessent said on Fox. "Everyone is going to participate in the American Dream.

I think we are at the edge of an innovation wave that we are seeing here. " Read more: Trump Accounts explained: How they work, who qualifies Trump Accounts, also known as 530A accounts, are tax-advantaged investment accounts for children intended to educate them about finance and build long‑term wealth for college, buying a home, or retirement savings. They offer children the opportunity to start early and learn how to invest in real life.

The accounts, which were enacted as part of the Working Families Tax Cuts law, include a one-time $1,000 contribution from the US Treasury Department for babies born from 2025 through 2028 — Trump's second term. Parents and their employers, family members, and friends can contribute up to $2,500 per year, beginning on July 5, with a $5,000 annual cap on contributions. Parents will be able to contribute directly to their children's accounts through an official app, with no IRS form required.

So far, over 50 companies, including Bank of America, JPMorgan, Intel, and Uber, have committed to contributions for their employees, while philanthropists have pledged their own donations. Story Continues Bessent also said 20 states may also contribute to Trump Accounts as they work to meet the administration's "50 State Challenge" to help fund the accounts. Read more: These are all the companies pledging matching funds to Trump Accounts Older children can also use the accounts, but they aren't eligible for the $1,000 seed money.

Certain other children may be eligible for a $250 contribution from Dell Technologies founder Michael Dell and his wife, Susan. The Dells are providing eligible children aged 10 and under who live in zip codes with a median income of $150,000 or less a contribution of $250. The commitment is estimated at $6.

25 billion. Trump said Wednesday on Truth Social that Micron CEO Sanjay Mehrotra has pledged $250 million to Trump Accounts. Hedge fund founder Ray Dalio and his wife, Barbara, also pledged $250 each to about 300,000 children living in Connecticut in households with median incomes below $150,000.

Altimeter Capital CEO Brad Gerstner said he would donate $250 to every Indiana child under 5 with a Trump Account. And rap artist Nicki Minaj has pledged $150,000 to $300,000 to the Trump Accounts of her fans' children. Over 6 million people have signed up for Trump Accounts, the Treasury Department said, with 1.

5 million of them eligible for the initial $1,000 seed contribution. 86% of Trump Accounts opened are linked to families earning less than $200,000 annually. Officials from the Nasdaq and the New York Stock Exchange plan to ring the opening bell from the Oval Office next week to mark the launch of Trump Accounts.

Jennifer Schonberger is a veteran financial journalist covering markets, the economy, and investing. At Yahoo Finance she covers the Federal Reserve, Congress, the White House, the Treasury, the SEC, the economy, cryptocurrencies, and the intersection of Washington policy with finance. Follow her on X @Jenniferisms and on Instagram .