The “One Big Beautiful” Law Remains a Source of Endless News and Updates in 2026. One of Them, Affecting Mutual Funds and ETFs, Will Be the Launch of the “Trump Accounts” for Newborn American Citizens
All babies born in the United States between January 1, 2025, and December 31, 2028, will have an account automatically opened when they receive their Social Security number, without parents having to take any action. The government deposits an initial $1,000, and from there, parents, relatives, guardians, employers, or organizations can make additional contributions, although these private contributions are not tax-deductible.
The operation is estimated to cost $15 billion through 2034.
The accounts are designed as long-term savings instruments, as the funds remain locked until the beneficiary turns 18.
A New Business for Funds and ETFs Investing in the U.S. Stock Market
The “Trump Accounts” can only invest in the U.S. stock market. Their growth will depend on market performance, and there is no guarantee of returns.
Why are safer assets like Treasury bonds excluded? Only Trump has the answer.
The capital is channeled into diversified funds that track the overall performance of the U.S. stock market, avoiding sector concentrations or investments in assets considered risky or too specific. The law also sets strict limits on fees, allowing only low-cost products.
When the beneficiary reaches adulthood, the account receives tax treatment similar to a retirement account, maintaining usage rules aligned with that type of vehicle.
Since it is a new program, regulators still need to determine which funds or managers will administer the actual accounts.
Funds That Could Be Selected
It is possible to identify U.S. broad-market equity funds and ETFs that, while not guaranteed to be officially chosen, do meet commonly accepted criteria: they replicate broad indexes, have low fees, and are diversified.
Vanguard S&P 500 ETF (VOO) — A very popular ETF that tracks the S&P 500 index, with very low fees.
iShares Core S&P 500 ETF — Another ETF indexed to the S&P 500, with good diversification and low cost.
Vanguard Total Stock Market Index Fund — An equity index fund that covers a broad universe of the U.S. market; it offers diversification beyond the large companies of the S&P 500.
iShares Core U.S. Total Stock Market ETF (for example, in its ETF version tracking a broad index of the entire U.S. market) — An equally diversified and low-cost option.
All Eyes on Birth Rates
Official U.S. birth data for 2025 has not been consolidated yet, but according to the National Center for Health Statistics of the United States, 3,628,934 births were recorded in 2024, representing a 1% increase compared to 2023. The fertility rate (births per 1,000 women aged 15 to 44) was 53.8 per 1,000 in 2024.
