Best Index Funds for Trump Accounts in 2026 (VOO, FNILX, VTI and More)

Trump Accounts launching July 4, 2026 restrict investments to a specific category: low-cost, broad U.S. equity index funds with an expense ratio at or below 0.10%. That sounds limiting, but it actually narrows the field to some of the best long-term investments available. Here is exactly which funds qualify and which ones are worth choosing.

The Rules: What Qualifies

The One Big Beautiful Bill Act sets four hard requirements for Trump Account investments during the growth period (until the year before the child turns 18):

1. Broad U.S. equity index fund: Must track an index of primarily U.S. companies
2. At least 90% U.S. companies: The fund’s weighted holdings must be at least 90% in U.S.-domiciled companies
3. Expense ratio at or below 0.10%: Annual fees cannot exceed 10 basis points
4. No leverage: Leveraged or inverse funds are excluded

This rules out individual stocks, bond funds, international funds, sector ETFs (tech-only, healthcare-only, etc.), actively managed funds, and any fund with fees above 0.10%.

The Best Qualifying Funds

1. Fidelity ZERO Large Cap Index Fund (FNILX)

Expense ratio: 0.00% | Type: Mutual Fund | Tracks: Fidelity U.S. Large Cap Index

The only major index fund with a 0.00% expense ratio. Fidelity created it to attract investors to its platform, and it has stayed at zero since 2018. The fund tracks Fidelity’s proprietary U.S. Large Cap Index rather than the S&P 500 itself, but in practice the performance difference from VOO has been under 0.05% annually.

The catch: FNILX is only available at Fidelity. You cannot hold it at Vanguard, Schwab, or other brokerages.

Best for: Families opening Trump Accounts through Fidelity who want to eliminate all fund costs.

2. Vanguard S&P 500 ETF (VOO)

Expense ratio: 0.03% | Type: ETF | Tracks: S&P 500

The most widely held index ETF in the world and the standard benchmark for U.S. large-cap equity investing. VOO holds 500 of the largest U.S. companies weighted by market capitalization. It is available at virtually every major brokerage. At 0.03%, the cost difference from FNILX’s 0.00% amounts to $3 per year on a $10,000 balance.

Best for: Families who want the most recognized S&P 500 ETF available across any custodian.

3. iShares Core S&P 500 ETF (IVV)

Expense ratio: 0.03% | Type: ETF | Tracks: S&P 500

Managed by BlackRock, IVV is functionally identical to VOO in terms of holdings, tracking error, and cost. Both track the S&P 500 at 0.03%. IVV is the largest ETF by assets under management in the world, which provides deep liquidity and very tight bid-ask spreads.

Best for: Families whose custodian offers IVV but not VOO, or who prefer BlackRock’s fund management.

4. Vanguard Total Stock Market ETF (VTI)

Expense ratio: 0.03% | Type: ETF | Tracks: CRSP US Total Market Index

VTI holds over 3,700 U.S. stocks, compared to 500 for VOO. It includes large-cap, mid-cap, and small-cap U.S. companies. Because it captures more of the U.S. market, it provides broader diversification than a pure S&P 500 fund. The 90% U.S. company requirement is easily met since VTI holds only U.S.-domiciled companies.

Best for: Families who want exposure to the full U.S. stock market beyond the 500 largest companies.

5. Fidelity 500 Index Fund (FXAIX)

Expense ratio: 0.015% | Type: Mutual Fund | Tracks: S&P 500

Fidelity’s mutual fund version of S&P 500 index investing. At 0.015%, it costs slightly more than FNILX but is a direct S&P 500 tracker. Mutual funds can be bought in exact dollar amounts rather than share quantities, which makes dollar-cost averaging simpler.

Best for: Families opening at Fidelity who want direct S&P 500 tracking.

6. Schwab S&P 500 Index Fund (SWPPX)

Expense ratio: 0.02% | Type: Mutual Fund | Tracks: S&P 500

Schwab’s mutual fund equivalent of FXAIX. Tracks the S&P 500 at 0.02%, available to Trump Account holders using Charles Schwab as their custodian. No minimum investment requirement.

Best for: Families opening Trump Accounts through Charles Schwab.

Funds That Do NOT Qualify

Fund	Why It Fails
Vanguard Total World Stock ETF (VT)	Too much international exposure, falls below 90% U.S.
iShares MSCI ACWI ETF (ACWI)	International exposure, below 90% U.S.
Invesco QQQ (QQQ)	Tracks Nasdaq-100, a sector-heavy index, not a broad market index
ARK Innovation ETF (ARKK)	Actively managed, not an index fund
Vanguard Growth ETF (VUG)	Style-based growth tilt, not a broad market index
ProShares Ultra S&P 500 (SSO)	2x leveraged, explicitly excluded

QQQ is the most common point of confusion. It is very popular but tracks the Nasdaq-100, which has high sector concentration in technology. It does not qualify.

Which Fund Should You Choose?

• Opening at Fidelity: Use FNILX (0.00%) or FXAIX (0.015%)
• Opening through BNY Mellon/Robinhood app: Use VOO or IVV
• Opening at Vanguard: Use VOO or VTI
• Opening at Schwab: Use SWPPX (0.02%)

The cost differences between these funds are tiny. On a $10,000 balance, the difference between 0.00% and 0.03% is $3 per year. Over 18 years at 7% growth, that compounds to about $100 in extra fees. What matters far more: choosing any qualifying fund and leaving the money invested for the full 18-year growth period.

The Math on a $1,000 Starting Balance

The government seed, invested for 18 years at historical U.S. stock market returns of approximately 7% annually after inflation, grows to roughly $3,400 by the time the child turns 18. With additional $2,000 annual contributions from parents, the projected balance at 18 is approximately $75,000. At maximum contributions of $5,000 per year for 18 years, the projected balance exceeds $170,000.

How to Confirm a Fund Qualifies

If you want to use a fund not listed here, check three things:

1. Look up the fund’s expense ratio. It must be 0.10% or lower.
2. Check the fund’s country allocation. It must be at least 90% U.S. companies.
3. Confirm the fund tracks an index and uses no leverage.

When in doubt, stick to the funds listed above. They cover every major custodian and all easily meet the requirements.

Sources: One Big Beautiful Bill Act (P.L. 119-21); IRS Notice 2025-68; fund prospectuses for FNILX, VOO, IVV, VTI, FXAIX, SWPPX. Expense ratios verified as of May 2026. This article is for informational purposes only and does not constitute financial or investment advice.