US Treasury picks State Street, BlackRock and Vanguard ETFs for Trump Accounts
The company logo and trading information for BlackRock is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 30, 2017. REUTERS/Brendan McDermid
July 1 : The U.S. Treasury has selected two BlackRock exchange-traded funds for Trump Accounts and named Vanguard as an alternate fund partner for the government's new child savings program, which is set to launch on July 4.
BlackRock's iShares Core S&P 500 ETF (IVV) and iShares Core S&P Total U.S. Stock Market ETF (ITOT) were chosen, both carrying expense ratios of 0.03 per cent. Vanguard Total Stock Market ETF (VTI) was named an alternate investment option.
"By giving younger Americans the opportunity to start investing earlier, Trump Accounts can help millions build long-term financial security," said BlackRock Chairman and CEO Larry Fink.
Under the scheme, the U.S. Treasury will deposit $1,000 as seed money into an investment account for each child with a valid Social Security number born between 2025 and 2028.
Many investment firms and corporations, including BlackRock, said they would match the U.S. government's $1,000 contribution for their employees.
