70 Million Kids Just Got Trump Accounts. The Bigger Winner Could Be State Street
Key takeaways
- Trump Accounts turn a tiny fee into a huge, long‑term customer‑acquisition engine for State Street and a new source of durable demand for S&P 500 mega‑caps.
- 70 million children enrolled
- $4.5 billion deposited
- 0.02% expense ratio on SPYM
What happened
The U.S. Treasury’s Trump Accounts program has enrolled nearly 70 million children, depositing more than $4.5 billion—government seed money, family contributions and philanthropic gifts—into a default investment vehicle, the State Street SPDR Portfolio S&P 500 ETF (SPYM).
Why it matters
The program creates a massive, long‑duration pipeline of new investors for State Street and its SPYM ETF, while also funneling fresh capital into the S&P 500’s largest companies. The scale and duration of the inflows could reshape fee revenue and ownership patterns in the U.S. equity market.
Short-term and longer-term
Short-term. In the next few weeks, watch the pace of new contributions and any shift in the default allocation away from SPYM.
Longer-term. Over the coming months, the Trump Accounts program could establish a new, durable savings habit for a generation of investors, giving State Street a long‑term client base and boosting fee revenue.