Best S&P 500 ETFs for Trump Accounts

The Four Main S&P 500 ETFs

When you open a Trump Account, you need to choose a fund. Most families will pick one of the four major S&P 500 ETFs. They all hold the same 500 companies. They all meet the Trump Account eligibility requirements. The main difference? Cost.

Let us compare them head to head.

SPLG: The Lowest Cost

SPDR Portfolio S&P 500 (SPLG) has the lowest expense ratio of the four at 0.02%. That is just $2 per year on a $10,000 balance. It tracks the exact same S&P 500 index as the other three.

SPLG is smaller than VOO and SPY in terms of total assets, but with over $40 billion under management, it is plenty large and liquid for a Trump Account. State Street created SPLG specifically as a low-cost alternative to their original SPY fund.

VOO: The Most Popular

Vanguard S&P 500 ETF (VOO) is the most widely held S&P 500 ETF with over $500 billion in assets. Its expense ratio is 0.03% — just one basis point more than SPLG.

Vanguard is known for its investor-first philosophy. VOO benefits from Vanguard's unique ownership structure, where the fund company is owned by its fund holders. This alignment of interests has helped keep fees low.

The difference between VOO at 0.03% and SPLG at 0.02% is $1 per year on $10,000. Over 18 years, that adds up to a very small amount. Either is an excellent choice.

IVV: The BlackRock Option

iShares Core S&P 500 (IVV) is BlackRock's S&P 500 ETF. It charges the same 0.03% as VOO and has over $400 billion in assets. For practical purposes, IVV and VOO are interchangeable.

Some brokerages may offer IVV more prominently than VOO, or vice versa. If your custodian defaults to IVV, that is perfectly fine. You are getting the same index at the same cost.

SPY: The Original (and Most Expensive)

SPDR S&P 500 (SPY) was the first S&P 500 ETF, launched in 1993. It is the most heavily traded ETF in the world. But for Trump Account purposes, it has one drawback: a higher expense ratio of 0.09%.

SPY costs three times more than VOO and four-and-a-half times more than SPLG. The reason is its legal structure as a unit investment trust, which limits how much State Street can reduce the fee.

SPY is still eligible for a Trump Account — it falls well below the 0.1% cap. But when cheaper alternatives exist that track the same index, there is no reason to pay more.

Fee Impact Over 18 Years

Let us put real numbers to the fee difference. Assume you invest the $1,000 deposit plus $250/month for 18 years at an 8% average return. Here is the approximate final balance for each ETF after fees:

The difference between SPLG and SPY is roughly $580 over 18 years. Not a fortune, but it is free money your child keeps by simply choosing the cheaper fund. And this gap grows wider with larger contributions.

Which One Should You Pick?

Here is our straightforward recommendation:

1. First choice: SPLG (0.02%) — The lowest cost. Same S&P 500 exposure. If your custodian offers it, this is the best option.
2. Second choice: VOO or IVV (0.03%) — Just one basis point more. An excellent option, especially if your custodian is Vanguard (VOO) or uses BlackRock products (IVV).
3. Acceptable: SPY (0.09%) — It works and is well below the 0.1% cap. But if you have access to the cheaper options, there is no reason to pick SPY.

What About Total Stock Market ETFs?

The law allows funds tracking a "broad U.S. equity index," not just the S&P 500. Total U.S. stock market funds — like VTI (Vanguard Total Stock Market, 0.03%) or ITOT (iShares Core Total U.S. Stock Market, 0.03%) — may also qualify.

Total stock market funds include the same S&P 500 companies plus thousands of smaller U.S. stocks. Historically, their returns are very similar to the S&P 500. If your custodian confirms these are eligible, they are a fine alternative.

The Bottom Line

All four major S&P 500 ETFs are good choices for a Trump Account. They track the same index, they all fall below the 0.1% fee cap, and their long-term returns will be nearly identical. The only meaningful difference is cost.

Go with SPLG or VOO for the lowest fees. Use the fund expense tracker to see exactly how fees affect your child's balance. For the full list of eligible fund rules, see our Trump Account fees guide and index fund requirements.