BlackRock (NYSE:BLK) announced that two iShares ETFs have been selected as investment options for federal Trump Accounts, which aim to help American children build wealth from birth. The iShares Core S&P 500 ETF (IVV) and iShares Core S&P Total U.S. Stock Market ETF (ITOT) each have a 0.03% expense ratio.
BlackRock highlighted related philanthropic efforts, including multimillion-dollar grants to children’s savings programs and a commitment to match the federal government’s $1,000 Trump Account contribution for eligible U.S. employees. The selected ETFs are expected to be available after the program’s official launch.
BlackRock has launched the iShares Large Cap Accelerated ETF (TWOX), expanding its outcome-oriented ETF suite. The new ETF aims to provide approximately twice the upside price return of the iShares Core S&P 500 ETF (IVV) up to an approximate cap of 5.82%, while tracking IVV's downside price return when held for an entire outcome period.
The outcome-oriented ETFs market has grown significantly from $5bn to over $160bn in the past five years. TWOX represents BlackRock's first accelerated return-focused strategy, designed to help investors seek enhanced returns in a moderate growth environment. The ETF combines an underlying ETF with options to create an 'acceleration zone' for higher return potential.
The fund has an expense ratio of 0.53% (gross) and 0.50% (net), with a fee waiver in effect until November 2030. The outcome period resets quarterly, during which the cap will adjust according to market conditions.
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