Treasury Adds 4 ETFs to Trump Child Accounts as 7 Million Enrollees Weigh Diversification
Updated
Updated · CNBC · Jul 31
Treasury Adds 4 ETFs to Trump Child Accounts as 7 Million Enrollees Weigh Diversification
3 articles · Updated · CNBC · Jul 31
Summary
Four additional U.S.-equity ETFs will be added to Trump accounts in coming months, giving families alternatives to the default State Street S&P 500 fund.
Three of the new options track broader stock baskets than the S&P 500 default—about 1,500, 2,400 and 3,500-plus holdings—while charging similarly low 0.03% expense ratios versus 0.02% for the default fund.
Advisers say broader total-market funds may reduce concentration risk after years of S&P 500 outperformance, though some still prefer staying in large-cap stocks for a child’s decades-long retirement horizon.
More than 7 million children are enrolled in the tax-deferred accounts, which allow up to $5,000 a year in contributions and include $1,000 in seed money for eligible children born from 2025 to 2028.
Financial planners say the accounts should complement—not replace—other savings vehicles such as 529 plans, taxable brokerage accounts and custodial UGMA/UTMA accounts, depending on liquidity needs and tax trade-offs.