VALLEY FORGE, PA — Vanguard’s Total Stock Market ETF (VTI) has been selected by the U.S. Treasury Department as one of the investment options for Trump Accounts, expanding the lineup of low-cost index funds available through the new federal savings program for children.
Treasury selected VTI as one of four alternate exchange-traded funds that parents and guardians will be able to choose for Trump Accounts after additional investment election functionality becomes available. At launch, contributions are invested by default in the State Street SPDR Portfolio S&P 500 ETF (SPYM).
The accounts, formally known as 530A accounts, were created to help families build long-term savings for children through diversified, low-cost U.S. stock index funds. Treasury has also approved the iShares Core S&P 500 ETF (IVV), iShares Core S&P Total U.S. Stock Market ETF (ITOT) and State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM) as investment options.
Vanguard indicated it also plans to support rollovers involving Trump Accounts after receiving additional guidance from the Treasury Department.
“For more than 50 years, Vanguard has been committed to helping investors achieve their financial goals with low-cost, broadly diversified index funds,” Rodney Comegys, chief investment officer of Vanguard Capital Management and head of global equity at Vanguard, said. “Trump Accounts offer a meaningful opportunity for families to begin investing early on behalf of their children.”
Treasury has not yet established a timeline for when account holders will be able to reallocate investments among the approved funds. Until that functionality is available, all contributions will remain invested in the default State Street fund.
Additional information about enrollment and program updates is available at TrumpAccounts.gov.
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