Treasury Picks BlackRock S&P 500 ETF, Vanguard as Alternate for Child Savings Plan
IVV•The U.S. Treasury designated BlackRock’s iShares Core S&P 500 ETF for the new child savings “Trump Accounts” program launching July 4, also selecting iShares Core S&P Total U.S. Stock Market ETF. Vanguard was named the alternate ETF partner for the initiative.
1. ETF Selection for Child Savings Program
The U.S. Treasury designated BlackRock’s iShares Core S&P 500 ETF and iShares Core S&P Total U.S. Stock Market ETF for the new child savings “Trump Accounts” program, set to launch July 4. Vanguard funds were named as alternates to ensure capacity and provide additional investment options.
2. Potential Inflows and Demand Impact
Initial contributions to the program are expected to flow into IVV, potentially boosting its assets under management and increasing daily trading volumes. The designation strengthens IVV’s positioning as a key vehicle for broad-market equity exposure within government-mandated savings.
3. Program Mechanics and Oversight
Treasury will administer eligibility and enrollment for children under the new savings law, automatically directing deposits into the selected ETFs. Vanguard’s alternate role will allow the program to redirect investments if primary ETF limits are reached.
