The U.S. Treasury has announced its selection of two BlackRock exchange-traded funds to serve as the investment vehicles for Trump Accounts, a new federal child savings initiative scheduled to go live on July 4. Vanguard has also been designated as an alternate fund partner in the program.
The two chosen funds are BlackRock’s iShares Core S&P 500 ETF, trading under the ticker IVV, and the iShares Core S&P Total U.S. Stock Market ETF, known as ITOT. Both funds carry an expense ratio of just 0.03%. Vanguard’s Total Stock Market ETF, ticker VTI, was identified as an alternative investment choice.
BlackRock Chairman and CEO Larry Fink expressed enthusiasm for the program, stating: “By giving younger Americans the opportunity to start investing earlier, Trump Accounts can help millions build long-term financial security.”
The way the program works is straightforward: the U.S. Treasury will place $1,000 in seed funding into an investment account for every child who has a valid Social Security number and is born between 2025 and 2028.
The initiative has also drawn support from the private sector. BlackRock and a number of other major investment firms and corporations have announced they will match the government’s $1,000 contribution for their own employees’ children.
