Robinhood CEO Vlad Tenev says Trump Accounts will start with only S&P 500 ETFs from State Street. The Treasury later added four more low-cost index funds for future allocation.
Trump Accounts will focus on the S&P 500 to keep investing "as simple as possible," said Robinhood CEO Vlad Tenev.
In an interview with CNBC released Wednesday, Tenev was asked whether users of the accounts – investment accounts for children launched by the Trump Administration in July – will only have the option to invest in the S&P 500 over the long term. "That's correct," he replied. "Right now, you can get the S&P 500 through a low-cost ETF provided by State Street."
State Street, a Boston-based financial services firm, is the default provider. Tenev said the goal was to make it easy "for every American, starting at birth, to get access to the great American economy." He added that "over time" there has been discussion about adding more options, but the S&P 500 is "a diversified portfolio of the most prominent companies" and an effective way to start.
The Treasury selected a lineup of four other low-cost index ETFs in addition to State Street's: the iShares Core S&P 500 ETF, the Vanguard Total Stock Market ETF, the State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF, and the iShares Core S&P Total US Stock Market ETF. Parents and guardians will be allowed to allocate funds to those products once they become available "in the coming months," the Treasury said in a July 1 press release.
The Trump Administration has encouraged companies to match the government's $1,000 deposit for children born between 2025 and 2028. Goldman Sachs, Micron, Bank of America, and BlackRock have done so. Private investors including SpaceX president Gwynne Shotwell and Dell CEO Michael Dell have also contributed.
The accounts officially launched July 4. The Treasury designated BNY Mellon as the financial agent supporting the rollout; BNY partnered with Robinhood as the official broker.
Robinhood shares trade under BAC stock page, GS stock page, and STT stock page.
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