Vanguard CEO Ramji Calls Trump Accounts a ‘Fabulous Concept'

The Trump administration’s plan to give $1,000 in seed funding to millions of US children is a “fabulous concept,” Vanguard Group Chief Executive Officer Salim Ramji said.

“It helps people invest early — in this case right from when they’re born,” Ramji said in an interview Monday on Bloomberg TV. “It does it in a low-cost way.” 

President Donald Trump introduced the accounts as part of the One Big Beautiful Bill Act, offering children born during his second administration funding that they can then put into individual retirement accounts. The US government is considering making Robinhood Markets Inc. an initial trustee of the program, along with one or two other firms.

Ramji didn’t say whether Vanguard has been in contact with the administration about the accounts. Still, he praised the “underlying ethos” of the program because fees are capped and the accounts would be invested in a diversified, broad-based set of indexes.

While customers could eventually move their funds to a different provider, the program would likely hand Robinhood billions of dollars of new assets to manage if it’s selected as a trustee. Trustees would potentially gain millions of new customers, as well.

JPMorgan Chase & Co. and some other banks have said they’ll match Trump account contributions for eligible employees.

Vanguard, which oversees about $12 trillion, reversed its longstanding ban on cryptocurrencies in December, allowing exchange-traded funds and mutual funds that primarily hold select cryptocurrencies to be traded on its platform.

Ramji, a former BlackRock Inc. executive, was tapped by Vanguard in 2024 to become the first outsider to lead the firm known for revolutionizing investing with the index funds. Asked about Trump’s choice of Kevin Warsh as the next chair of the Federal Reserve, Ramji called him a “great choice.”

©2026 Bloomberg L.P.

This article was generated from an automated news agency feed without modifications to text.