Treasury picks BlackRock ETFs for Trump child savings accounts

The Treasury Department chose two BlackRock exchange-traded funds to anchor the first Trump child savings accounts, giving the new program an instant lineup of ultra-low-cost stock funds with 0.03% expense ratios. Vanguard’s Total Stock Market ETF was named as an alternate option, narrowing the accounts to a small set of broad U.S. equity products.

The accounts are scheduled to accept regular contributions starting July 4, 2026. Eligible children born between January 1, 2025, and December 31, 2028, and holding a valid Social Security number are set to receive a $1,000 federal seed contribution, a design meant to start compounding early and carry the balance for years.

Congress created Trump Accounts in the One Big Beautiful Bill Act, signed into law on July 4, 2025, and the Congressional Research Service has described them as a new form of traditional IRA for children. Treasury guidance limits investments to low-cost mutual funds or ETFs that track broad U.S. equity indices, such as the S&P 500, which is why the department picked BlackRock’s iShares Core S&P 500 ETF and iShares Core S&P Total U.S. Stock Market ETF. Vanguard publicly confirmed that Treasury selected its Total Stock Market ETF, known as VTI, as an alternate investment option.

For parents, the appeal is simplicity and low fees. The 0.03% expense ratio on the BlackRock funds leaves almost the full balance working for the account owner, especially important when the government’s $1,000 deposit is the starting point. But the structure also means the money is tied to the stock market from the outset. That can produce strong long-term gains if U.S. equities rise over time, yet it also exposes children’s savings to losses in downturns, including years when a portfolio could fall even if the account is intended for decades of growth.

The choice of just a few passive index funds also shows how the program is being built around private investment firms rather than a public account menu. Treasury has said BNY will serve as a financial agent to support the program, and it has already said about 4 million children were signed up by March 31, 2026, with 1 million claiming the $1,000 pilot contribution. BlackRock chairman and chief executive Larry Fink framed the effort as a chance to get younger Americans investing earlier, while Treasury has tied the accounts to President Trump’s 250th-anniversary economic agenda. The result is a savings plan that is easy to administer, but one that channels public trust into a narrow lane of Wall Street index products for years to come.