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The biggest number in the Trump Accounts rollout isn't the $1,000 government contribution. It is the nearly 70 million children now sitting inside a new investment system — one that initially directs contributions into a single State Street ETF. For State Street Corp, that could turn a low-fee index fund into a remarkably long-duration customer-acquisition engine.
State Street Got the Default
The Treasury Department said automatic enrollment has created Trump Accounts for every eligible child under 18 with a valid Social Security number, taking the total to nearly 70 million. More than $4.5 billion has already been deposited, including government seed contributions, family money and philanthropic gifts.
But the money doesn't simply sit in cash waiting for parents to decide what to do.
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At launch, the State Street SPDR Portfolio S&P 500 ETFis the exclusive default investment. Treasury selected four additional low-cost index funds, including products from Vanguard and BlackRock, but those choices were not initially available for parents to select.
These include the iShares Core S&P 500 ETF, the Vanguard Morningstar Total Stock Market ETF, the State Street SPDR Portfolio S&P 1500 Composite Stock Market ETFand the iShares Core S&P Total U.S. Stock Market ETF.
That distinction matters. Every dollar that flows into an account before an alternative investment is selected is directed into SPYM, which tracks the S&P 500.
State Street's investment-management arm calls SPYM the lowest-cost U.S.-listed S&P 500 ETF, with a 0.02% expense ratio. The fee is tiny. The potential scale isn't.
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Small Fees, Very Long Horizon
At today's scale, the economics aren't transformational on their own. At a 0.02% fee, the $4.5 billion already deposited into Trump Accounts would generate about $900,000 a year for State Street.
But Trump Accounts are designed to stay invested for years. Contributions can continue until the child turns 18, and the account then transitions into a traditional IRA.
That makes the more interesting State Street opportunity less about immediate fee revenue and more about duration.
The program has already attracted billions in philanthropic and family contributions. Treasury says more than 70 companies have committed to making contributions for employees' children, while the new rules also allow certain corporate and philanthropic donors to contribute individual stocks.
If the accounts become a permanent savings habit, State Street has effectively been handed exposure to a generation of investors at the moment their investment relationship begins.
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The S&P 500 Is the Bigger Beneficiary
There is another layer investors shouldn't miss.
SPYM owns the largest U.S. companies through the S&P 500. So as money enters the accounts, the beneficiaries aren't just State Street and its ETF. The capital ultimately flows into the same mega-cap companies already dominating American equity indexes.
That means Nvidia Corp, Microsoft Corp, Apple Inc, Amazon.com Incand other S&P 500 giants could gain another source of long-duration demand as these accounts accumulate assets.
The immediate numbers are still too small to move those stocks. The more important question is whether Trump Accounts become a durable savings infrastructure rather than a one-time government program.
For State Street, meanwhile, the investment takeaway is unusually simple: investors should watch assets flowing into Trump Accounts, the pace of additional contributions and whether SPYM retains its position as the dominant default.
The headline is 70 million children. The more interesting market story may be the financial infrastructure being built underneath them.
Image via Shutterstock
Building Wealth Across More Than Just the Market
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EquityMultiple
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Realberry
For accredited investors looking beyond traditional stocks and bonds, Realberry provides access to institutional-quality real estate investments, including a preferred equity opportunity in the 297-room Hyatt Place Boston Seaport. The firm has invested across multiple property types and markets, with 13 million square feet of real estate across seven U.S. states and $481 million in cumulative distributions paid to investors as of Q4 2025.
Skybound Entertainment
Entertainment franchises can become valuable long-term assets when they successfully expand across multiple platforms. Skybound Entertainment, the company behind The Walking Dead and Invincible, develops original intellectual property that spans comics, television, film, video games, merchandise, and licensing . With more than 250 IPs in its portfolio and a strategy focused on retaining franchise rights while scaling successful stories across media, Skybound offers investors exposure to the growing entertainment and creator economy through a private company rather than traditional public market investments.
American PowerGen
As artificial intelligence drives a surge in electricity demand, reliable power generation is becoming a critical part of the technology ecosystem. American PowerGen is developing natural gas-fired power plants in Texas, a fast-growing market fueled by AI data centers, manufacturing expansion, and population growth. By advancing projects through permitting, fuel supply, and grid interconnection, the company is positioning itself to help meet rising energy needs while offering investors exposure to the infrastructure supporting the next wave of AI and industrial growth.
Bito
As AI coding tools take on more of the work traditionally done by developers, companies are facing new challenges around code quality, context and the rising cost of AI-powered development. Bito is building software designed to help AI coding agents better understand complex codebases while helping companies control AI development costs. Founded by former PubMatic executives, Bito has raised more than $10 million from institutional and individual investors and is now raising additional capital through a Wefunder offering, giving investors an opportunity to invest in a company targeting an emerging need within the rapidly expanding AI software market.
DLP Capital
For accredited investors looking beyond stocks and traditional real estate opportunities, DLP Capital provides access to private real estate strategies focused on workforce housing —homes for essential workers such as teachers, nurses, firefighters, and police officers. With more than $5.5 billion in assets under management and a community of 4,000+ accredited investors, DLP Capital gives investors access to real estate strategies designed around the growing need for housing that working Americans can actually afford.
FarmTogether
Farmland has historically held its value through market volatility and delivered returns uncorrelated to stocks and bonds. For accredited investors, FarmTogether offers direct access to high-quality U.S. farmland starting at $15,000 — fully managed, with no landlord headaches.
Fundrise
Private real estate and private credit can add income and stability to a stock-heavy portfolio. Fundrise offers access to diversified private real estate and credit strategies through an easy-to-use platform, with professionally managed portfolios designed to generate passive income and long-term growth.
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