State Street has been named the exclusive default investment provider for the Treasury Department's new Trump Accounts program for minors. The Treasury has opened nearly 70 million Trump Accounts for children under 18, with initial contributions routed into State Street's SPDR Portfolio S&P 500 ETF. The default allocation into that single SPDR index fund is only one piece of the longer term State Street story, but it could create a large pipeline of future retail investors for the firm if the program remains in place as an ongoing savings vehicle. Onboarding the accounts positions State Street closer to millions of future retail savers than its usual institutional customer base, though concentrating millions of young investors into one low-fee ETF keeps fee compression front and center.
State Street CorpNamed exclusive default investment provider for Treasury's Trump Accounts, routing ~70 million children's contributions into its SPDR S&P 500 ETF, creating a large pipeline of future retail investors.
