Trump Accounts Are Open: 500,000 Signed Up in Days. Here’s What the 0.10% Fee Cap Actually Lets You Buy

3 weeks ago 10

David Beren

Wed, August 5, 2026 astatine 8:23 AM CDT 5 min read

Quick Read

SPYM charges 0.02% versus VOO's 0.03%, delivering identical S&P 500 vulnerability astatine the lowest outgo among Trump Account-eligible funds.
Switching existing VOO positions to SPYM triggers superior gains that dwarf the 50-cent yearly savings connected a maxed $5,000 contribution.
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The Vanguard S&P 500 ETF (NYSEARCA:VOO) is the money astir retail investors scope for erstwhile they privation the S&P 500 successful 1 ticker. Treasury opened Trump Accounts connected July 4, and astir 500,000 were opened successful the archetypal fewer days. Contributions are capped astatine $5,000 a year, and eligible investments are constricted to US-equity scale funds with an disbursal ratio of 0.10% oregon less. VOO clears that barroom easily, which is wherefore it volition beryllium the default prime for galore caller relationship holders. It besides deserves a 2nd look earlier the wealth goes in.

A young lad successful a striped t-shirt and achromatic graduation headdress sits astatine a achromatic table, pressing buttons connected a greenish calculator. Beside him, a smiling antheral with a beard and denim garment holds a smaller achromatic graduation headdress implicit a pinkish piggy bank. On the table, there's a solid jar afloat of wealth labeled "COLLEGE," a notebook, and a yellowish cupful with pencils. The inheritance features woody shelves.

Why VOO Became the Default

At a 0.03% disbursal ratio, VOO delivers choky tracking of the S&P 500 and carries the value of Vanguard's marque recognition. Retail engagement has been steady, with Reddit sentiment peaking astatine 78, which registers arsenic bullish, connected July 10, driven mostly by threads similar "Is $100/week connected VOO a bully idea?" Performance has stayed close successful enactment with the scale it follows, coming successful astatine 19.58% implicit the past twelvemonth and 82.79% implicit 5 years connected an adjusted basis. In a taxable brokerage account, nary of that raises immoderate reddish flags.

The iShares Core S&P 500 ETF (NYSEARCA:IVV) is the near-clone of BlackRock, with an identical 0.03% disbursal ratio and a 19.59% one-year return. Either is simply a tenable default. Both acceptable wrong the Trump Account interest headdress with country to spare.

Where the Default Falls Short

The 0.10% ceiling is simply a ceiling, not a target. Inside a Trump Account, the meaningful question is which eligible money costs the slightest portion delivering the aforesaid index. VOO astatine 3 ground points is not the cheapest enactment disposable successful the eligible universe.

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The State Street Alternative

The SPDR Portfolio S&P 500 ETF (NYSEARCA:SPYM) charges 0.02%, 1 ground constituent beneath VOO and IVV. State Street renamed the money from SPLG to SPYM connected October 31, 2025, arsenic portion of a rebrand grouping its portfolio-tier funds nether the SPY family. The scale vulnerability did not change. Top holdings reflector the S&P 500's mega-cap concentration: NVIDIA astatine 7.57%, Apple astatine 6.66%, and Microsoft astatine 4.91% arsenic of March 31, 2026.

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