The Department of the Treasury has designated the State Street SPDR Portfolio S&P 500 ETF as the default investment for Trump Accounts, set to launch on July 4.
In addition to this ETF, the Treasury plans to offer four more low-cost index fund options soon:
– iShares Core S&P 500 ETF
– Vanguard Total Stock Market ETF
– State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF
– iShares Core S&P Total U.S. Stock Market ETF
These funds aim to provide diversified exposure to major financial markets while maintaining low investment costs, with annual fees capped at 0.10%. The expense ratio for the SPDR fund is 0.02%, while the other four funds each have a 0.03% ratio. Further guidance on fund allocation and changes for account holders will be provided. The account structure focuses on broad U.S.-based index funds with no current plans mentioned for offering international equities or bonds.
