Vanguard CEO Ramji Calls Trump Accounts a ‘Fabulous Concept’

Vanguard Group Chief Executive Salim Ramji said the Trump administration’s plan to give millions of US children $1,000 as a start-up fund is a “fantastic concept.”

“This helps people invest early — in this case, from the moment they are born,” Ramji said in an interview broadcast on Bloomberg TV on Monday. “It does this in a cost-effective way.”

President Donald Trump introduced the accounts as part of his One Big Good Bill Act, providing funds to children born during his second administration that they could then deposit into individual retirement accounts. The U.S. government is considering placing Robinhood Markets Inc. among the program’s initial trustees, along with one or two other firms.

Ramji did not say whether Vanguard had been in contact with management regarding the accounts. Still, he praised the “fundamental concept” of the program because fees were limited and accounts would be invested in a diversified, broad-based set of indices.

While customers may eventually move their funds to a different provider, the program would likely hand over billions of dollars of new assets to Robinhood to manage if it is elected trustee. Trustees will also gain potentially millions of new customers.

JPMorgan Chase & Co. and several other banks said they would match Trump’s account contributions for eligible employees.

Vanguard, which oversees nearly $12 trillion, lifted its long-standing ban on cryptocurrencies in December, allowing exchange-traded funds and investment funds that primarily hold certain cryptocurrencies to trade on its platform.

A former BlackRock Inc. Ramji has been nominated by Vanguard in 2024 to become the first foreigner to lead the firm known for revolutionizing investments with index funds. When asked about Trump’s choice of Kevin Warsh as the next chairman of the Fed, Ramji called him a “great choice.”

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