What the Money Buys: Five Index Funds and Nothing Else

Most retirement plans show a long list of funds. A Trump account shows a very short one. Washington wrote the investment rules into the tax law, and they leave little room. This chapter explains what the money buys, what it cannot buy, and how little the choice between funds matters.

What can a Trump account hold?

During the growth years, the account can hold only a fund that meets three rules:

• It tracks an index of mostly U.S. companies, such as the S&P 500.
• It does not use borrowed money to boost returns.
• Its yearly fees and expenses are no more than 0.1% of what you hold.

The growth years run until the end of the year before the child turns 18. The IRS gives an example. A child born October 1, 2025 has a growth period ending December 31, 2042. Money can come out starting January 1, 2043.

In plain terms, the account holds the broad U.S. stock market at wholesale prices. It does not hold individual stocks, bonds, gold or crypto. We cover what happens at 18 in a later chapter.

Which five funds did Treasury pick?

On July 1, 2026, Treasury named the funds below. The fund fees are the funds' own published figures as reported in the news. Check each fund's page for the current number.

If you never change a setting, your money goes into SPYM. Treasury said that, at launch, all contributions stay in the default until it opens a way to choose. Open the account app to see whether choosing is open yet. This list can change.

How much do fees cost?

The fee cap is 0.1% a year. On a $5,000 balance, that is at most $5. Here is the cost on $5,000 at each rate.

The gap between SPYM and any other listed fund is 50 cents a year. The cap exists to stop the $50 case. The fund choice is close to a rounding error.

Compare that with the choice that does matter. A family that adds $5,000 and keeps the default is $5,000 ahead of a family that spends weeks picking a fund and adds nothing.

Can anyone put stock into the account?

Only in one narrow case. The September 2026 temporary rules let large donors give publicly traded stock of U.S. companies. The gift goes through Treasury to a defined group of children. The stock must be held until the earlier of five years or the end of the growth years.

This is not a way for you to drop shares into your own child's account. Ordinary contributions must be cash. Our chapter on the $5,000 limit covers what counts toward the limit.

Can you move the account to another company?

Possibly later. The tax rules allow a move of the whole account from one trustee to another, and a child can have only one funded Trump account at a time. The first accounts are held through Treasury's app, with Robinhood as the first trustee. We cover providers separately, because the timing of moves depends on guidance that is still coming.

Why are the choices so narrow?

The law set the rules before any family opened an account. The aim was a cheap, broad, simple account that parents do not have to manage. A short list of similar funds does that. It also means you cannot tailor the account to your own plans. If you want a different kind of investment, use a different account.

What risk does a stock-only account leave?

Every fund on the list holds stocks. Stock prices rise and fall, and the account has no bond fund to cushion a fall. A balance can drop in a bad year, and nothing inside the account offsets that loss.

This matters most as the child nears 18, when the money may be needed soon. The account cannot shift to safer holdings on its own. If a goal sits close, keep that money somewhere steadier, such as a savings account. This chapter makes no promise about returns.

What should you do next?

1. Open the account app and confirm the fund your money is in.
2. Leave the default in place unless you have a reason to change it.
3. Spend your effort on the steps that count: claiming the account, staying under the yearly limit, and keeping records.

Limits of this chapter.

• The fund list and fees are as reported on July 1, 2026 and can change.
• Choosing between funds may not yet be open; check the account app.
• This is general information, not investment advice, and it makes no promise about returns.