Trump Accounts launch with a 100% equity tilt and no glide path
The default is the State Street SPDR Portfolio S&P 500 ETF at a 0.02 percent expense ratio, CNBC reported, with four other options from BlackRock, Vanguard and State Street.
Bank of New York Mellon manages the initial accounts, and families track balances through an app built with Robinhood.
Return projections deserve a client-expectations caveat.
TrumpAccounts.gov estimates a child who receives only the US$1,000 seed could reach about US$6,000 by 18 and US$243,000 by 55, while US$5,000 in annual contributions could grow to roughly US$271,000 by 18 and US$13m by 55, based on the S&P 500’s historical average return of more than 10 percent.
CNBC noted those figures run hot against some forecasts: Morningstar’s simulations produced an average annual return of 6.3 percent.
