India, July 19 -- Donald Trump has launched a new savings program called Trump Accounts for eligible newborn babies in the US. Every eligible newborn will receive $1,000 from the US government to start investing from birth. The goal of the program is to help children build wealth over time by investing in the stock market from a very young age. Parents, family members and other eligible contributors can add up to $5,000 every year to the account.

Bloomberg Money spoke to Eric Balchunas, Senior ETF Analyst at Bloomberg Intelligence, about how the program works and what parents should know. Balchunas said parents should be happy because the government picked five low-cost and highly diversified ETFs for the accounts. He said the default in...