Trump Accounts propose $1,000 investment for newborns

Trump Accounts give eligible US newborns $1,000 from the government to invest in ETFs.

The default investment is the State Street SPDR Portfolio S&P 500 ETF (SPYM).

Parents can choose between S&P 500 ETFs (SPYM, IVV) or broader market ETFs (ITOT, VTI, SPTM).

Up to $5,000 per year can be added by parents or family, and funds cannot be accessed until age 18.

With maximum annual contributions and 7% average return, the account could grow to about $200,000 by age 18.