President Trump's One Big Beautiful Bill Act introduced a new savings and investing vehicle for families known as Trump Accounts.
They function as a type of tax-deferred savings account for those under 18, and they come with a starter package for any U.S. citizen born between Jan. 1, 2025, and Dec. 31, 2028: a $1,000 deposit from the government. The goal is to allow young people access to a tax-deferred investment account that will earn and grow, and later be used for things like college or buying a first home.
All funds in the Trump Account, including contributions by parents and others, will be invested in the State Street SPDR Portfolio S&P 500 ETF (SPYM), which tracks the performance of the S&P 500 index.
According to the U.S. Treasury Department, other low-cost index ETFs eligible for Trump Accounts include iShares Core S&P 500 ETF (IVV), Vanguard Total Stock Market ETF (VTI), State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM), and iShares Core S&P Total US Stock Market ETF (BITO39.SA).
Here's how Trump Accounts work, and how they compare to other tax-advantaged savings vehicles available to families.