The US Treasury Department has outlined the types of mutual funds and exchange-traded funds (ETFs) eligible for Trump Accounts, tax-advantaged savings vehicles available for children. This proposal, set for publication in the Federal Register, is part of ongoing rulemaking regarding child savings accounts promoted by the White House.
Eligible investments generally include mutual funds or ETFs tracking an equity index predominantly composed of American companies, with fund expenses capped at 0.1% of the investment balance. The accounts, which officially launched on July 4, allow parents to open accounts for children under 18 and contribute up to $5,000 annually.
In July, the Treasury announced an initial investment lineup for these accounts, featuring the State Street SPDR Portfolio S&P 500 ETF as the default option.
