Can Parents Change Trump Account Funds?

Yes, You Can Change Funds

As the parent or legal guardian (called the "authorized individual" under IRC Section 530A), you manage your child's Trump Account during the growth phase. This includes the ability to choose and change which eligible fund the money is invested in.

You can switch between any funds that meet the Trump Account requirements:

• The fund must track the S&P 500 or a broad U.S. equity index.
• The fund must have an expense ratio at or below 0.1%.

So if you started with VOO and later decide SPLG offers a lower expense ratio, you can make that switch. If your custodian adds a new eligible fund, you can move to it.

What You CAN Switch Between

Here are examples of eligible swaps:

• VOO to SPLG — moving to a lower-cost S&P 500 ETF
• SPY to VOO — reducing expense ratio from 0.09% to 0.03%
• IVV to SPLG — switching providers while staying in the S&P 500
• An eligible mutual fund to an eligible ETF — or vice versa

All of these are fine because both the source and destination funds meet the Trump Account eligibility criteria.

What You CANNOT Switch To

The law is clear about what is off-limits. You cannot move Trump Account money into any of the following — even temporarily:

• Individual stocks — Not even shares of S&P 500 companies
• Bonds or bond funds — Including Treasury bonds
• Crypto or crypto ETFs — No exceptions
• Real estate or REITs
• Cash or money market funds — The money must stay invested in equities
• International-only funds — Must be U.S. equity focused
• Sector or thematic funds — No tech-only or healthcare-only funds
• Any fund with an expense ratio above 0.1%

How Often Can You Switch?

The law itself does not set a specific limit on switching frequency. However, there are practical considerations:

• Custodian policies: Some brokerages have rules against excessive trading or short-term round-trip trades in the same fund. Check your custodian's trading policies.
• Settlement times: ETF trades typically settle in one business day. You may need to wait for settlement before buying a different fund.
• Mutual fund rules: Some mutual funds have short-term trading fees or holding periods. ETFs generally do not have these restrictions.

Should You Switch? (Probably Not)

Here is the practical advice: pick the lowest-cost eligible fund and leave it alone.

All eligible Trump Account funds track the same index or a very similar one. The S&P 500 is the S&P 500, whether you hold it through VOO, SPLG, IVV, or SPY. The only meaningful difference between them is the expense ratio.

There are only a few good reasons to switch:

1. A cheaper fund becomes available. If a new ETF launches with a lower expense ratio and your custodian supports it, switching makes sense.
2. Your fund raises its expense ratio. Unlikely for major ETFs, but if it happens, move to a cheaper alternative.
3. You change custodians. If you move to a new brokerage that does not carry your current fund, you will need to switch to one they offer.

Who Makes the Decision?

During the growth phase (birth to age 18), the authorized individual — typically a parent or legal guardian — controls all investment decisions. This includes:

• Choosing the initial fund
• Switching between eligible funds
• Making contributions

At age 18, the account converts to a traditional IRA and full control transfers to the child. At that point, the child (now an adult) can invest in anything allowed under standard IRA rules — not just S&P 500 index funds.

For more on account control, read Who Controls a Trump Account Before 18? For a detailed comparison of the eligible funds, see Best S&P 500 ETFs for Trump Accounts. And to understand the full list of eligible fund requirements, visit our Index Fund Requirements guide.