No matter which side of the road your political beliefs and values align with, there is one thing most Americans can agree on: the country finds itself in the grip of an unaffordable crisis. From a broken housing market and high used car prices to college tuition and high energy prices fueling inflation, the prices of everyday items and important measures of wealth building are near all-time highs.
To help younger generations deal with that issue, the Trump administration announced in December 2025 that it would establish Trump Accounts—tax-advantaged investment vehicles for US children under the age of 18.
Officially launched on July 4, the accounts offer a $1,000 government grant to eligible children born between 2025 and 2028, with up to $5,000 in addition to family and friend grants allowed each year.
The idea behind the accounts is to give deserving children a head start. And on July 1, the US Treasury released its list of low-cost index funds that participants can choose from. While the State Street SPDR Portfolio S&P 500 ETF NYSEARCA: SPYM. currently the default investment in Trump accounts upon launch, the Treasury Department intends to add four more funds to its list of contributions in the coming months,
State Street's Ultra-Low-Cost S&P 500 ETF
State Street SPDR Portfolio S&P 500 ETF Today
State Street SPDR Portfolio S&P 500 ETF
Starting at 11:47 AM Eastern
- 52 week interval
- $72.86
▼
$89.52
- Dividend Yield
- 1.03%
- Assets Under Administration
- $161.09 billion
Formerly trading under the ticker SPLG, SPYM is a passively managed fund that tracks the S&P 500.
At just 0.02%, it features the lowest fee rates on the market. A hypothetical $50,000 invested in SPYM would yield payouts of just $10 per year.
This fund invests primarily in large and large US stocks. As it mirrors the S&P 500, it has gained more than 10% this year and more than 20% next year.
Like the index itself, SPYM's portfolio is heavily skewed toward tech names, including the Magnificent Seven and AI stocks like Broadcom. NASDAQ: AVGO and Micron Technology NASDAQ: MU.
As a result, the fund's performance is expected to outperform weighted benchmarks during rallies and underperform during pullbacks and corrections due to its high technical exposure.
iShares' S&P 500 Low-Cost Fund Offers Attractive Yields
iShares Core S&P 500 ETF Today
iShares Core S&P 500 ETF
Starting at 11:47 AM Eastern
- 52 week interval
- $622.31
▼
$764.00
- Dividend Yield
- 1.08%
- Assets Under Administration
- $894.42 billion
iShares Core S&P 500 ETF NYSEARCA: IVV it is comparable to SPYM because it is passively managed, uses weighted tracking of the S&P 500, and has a very low expense ratio—0.03% of which is slightly higher than SPYM.
As a result, the ETF has performed roughly the same year to date and over the past 12 months, while its holdings are not reflected in the SPYM index.
With approximately $890 billion in assets under management (AUM), IVV is the largest fund eligible for Trump accounts.
One area the fund differentiates itself is the dividend, which pays 1.08% – or $8.18 per share annually – compared to SPYM's dividend, which pays 1.03%.
ETF is also popular among smart money. The current ownership of the institution stands at more than 70%.
Vanguard's Holistic US Stock Market ETF
Vanguard Total Stock Market ETF today
Vanguard Total Stock Market ETF
Starting at 11:47 AM Eastern
- 52 week interval
- $304.40
▼
$374.70
- Dividend Yield
- 1.05%
- Assets Under Administration
- $669.59 billion
While the first two options limit exposure to the largest US 500 publicly listed companies, the Vanguard Total Stock Market ETF NYSEARCA: VTI tracks the CRSP US Total Market Index, which represents nearly 100% of the US investable market.
In doing so, the fund provides significantly higher diversification just shy of 3,500 holdings.
However, because it is market weighted, it still has a bias towards technology, which accounts for about 36% of the portfolio, with 16% exposure allocated to the semiconductor industry.
At 1.05%, VTIs pays dividends between SPYM's and IVV's and pays $3.90 per share annually.
But in the era of thematic ETFs, VTI's broad exposure resulted in a below-average institutional ownership of 28.92%.
State Street's Broad-Based, Well-Balanced Mutual Fund
SPDR Portfolio S&P 1500 Composite Stock Market ETF Today
SPDR Portfolio S&P 1500 Composite Stock Market ETF
Starting at 11:45 AM Eastern
- 52 week interval
- $75.02
▼
$92.11
- Dividend Yield
- 1.05%
- Assets Under Administration
- $13.73 billion
With more than 1,500 holdings, the SPDR Portfolio S&P 1500 Composite Stock Market ETF NYSEARCA: SPTM offers superior diversification in SPYM and IVV without tracking the value of a US market index such as VTI.
The fund's dividend yield is 1.05%, or 96 cents per share annually, and its expense ratio of 0.03% is in line with other ETFs on this list.
But at less than $14 billion in AUM, SPTM is the smallest fund of the five options.
Where SPTM stands out is its broad market exposure.
By combining large-cap, mid-cap, and small-cap US stocks, this fund offers greater diversification than SPYM and IVV, although its sector mix remains similar to other broad-market funds.
Technology still holds about 36% of the portfolio, followed by financials at about 13%, consumer discretionary at 10%, and telecommunications and industrial services, both at about 9%.
iShares' Total Market Offering
iShares Core S&P Total US Stock Market ETF today
iShares Core S&P Total US Stock Market ETF
Starting at 11:47 AM Eastern
- 52 week interval
- $135.22
▼
$166.43
- Dividend Yield
- 0.99%
- Assets Under Administration
- $95.16 billion
iShares Core S&P Total US Stock Market ETF NYSEARCA: TOT offers broader diversification than SPYM and IVV as it tracks the S&P Total Market Index, which provides exposure to US stocks across all market sectors.
With nearly 2,500 companies in its portfolio, ITOT offers a balanced sector approach with shares like SPTM.
However, its shares yield just 0.99%—the lowest of all five options eligible for Trump accounts—and institutional ownership has seen almost as many sales as buys over the past 12 months, with just over $801 million in revenue compared to $737 million in outflows.
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