State Street Investment Management has been selected by the United States Department of the Treasury to participate in a new national savings and investment initiative aimed at minors in the United States. The asset manager announced that its State Street SPDR Portfolio S&P 500 ETF (SPYM) will be the exclusive default investment vehicle within the program known as Trump Accounts, a new scheme designed to foster long-term investment from an early age.
The program, driven by the U.S. government under the Working Families Tax Cut Act legislation, will officially begin this July 4, 2026, coinciding with the celebration of the 250th anniversary of the country’s Declaration of Independence. According to the firm, the selected ETF tracks the S&P 500 index and offers diversified exposure to the leading publicly traded companies in the United States. Furthermore, State Street highlights that it is currently the lowest-cost S&P 500 ETF on the market, making it an especially suitable tool for a long-term investment strategy geared toward small savers.
The so-called Trump Accounts will allow minors under the age of 18 to access tax-advantaged investment accounts with low-cost indexed exposure to the U.S. economy. Under the program, children born between January 1, 2025, and December 31, 2028, will be eligible to receive a single, initial 1,000 dollar contribution funded by the U.S. Treasury, provided an authorized adult activates the account during federal tax filing.
Additionally, any U.S. minor will be able to receive supplementary contributions of up to 5,000 dollars annually, which will be automatically invested in the SPYM ETF as the default option.
Yie-Hsin Hung, CEO of State Street Investment Management, noted: “We are delighted that SPYM has been selected as the default fund for this important savings and investment program. These accounts are designed to make investing simple, accessible, and sustainable over time, allowing families to start early and stay invested for the long term.”
For her part, Anna Paglia, the firm’s Global Head of Business, recalled that the company has spent more than forty years developing solutions aimed at expanding investor access to financial markets through efficient and scalable vehicles.
Furthermore, State Street announced that it will be one of the first American companies to match the Treasury’s contribution for the children of eligible employees, thereby expanding the program’s reach and reinforcing its commitment to financial education and long-term investing.
