How to invest in USA using ETFs

How do I invest in American stocks?

The easiest way to invest in the whole American stock market is to invest in a broad market index. This can be done at low cost by using ETFs.

On the American stock market you find 5 indices, which are tracked by ETFs. Besides these indices 12 alternative indices on small and mid caps as well as equity strategies can be considered. Among these strategies you find dividend focused, growth and values approaches.

Alternatively, you may consider indices on North America or the World. The listed indices significantly weight the USA with over 50%.

0.05% p.a. - 0.51% p.a.
annual total expense ratio (TER) of USA ETFs
on the American stock market, which is tracked by ETFs
on the American stock market
The best indices for USA ETFs

Performance of American stocks (S&P 500®)

1 month: 9.73%
1 year: 9.25%
3 years: 65.05%
5 years: 139.70%

Indices in comparison

The best indices for ETFs on USA

For an investment in the American stock market, 5 indices tracked by 33 ETFs are available. On the Dow Jones Industrial Average index there are 4 ETFs. On the MSCI USA index there are 12 ETFs. On the MSCI USA Large Cap index there are 2 ETFs. On the Russell 3000® index there is 1 ETF. On the S&P 500® index there are 14 ETFs. The total expense ratio (TER) of ETFs on these indices is between 0.05% p.a. and 0.51% p.a..

Index Investment focus Number of ETFs Number of constituents Short description

Dow Jones Industrial Average

United States 4 ETFs 30
The Dow Jones Industrial Average (total return|gross) index tracks the largest 30 industrial companies in the US.
Index factsheet

MSCI USA

United States 12 ETFs 617
(31/10/16)
The MSCI USA (total return) index tracks around 600 leading stocks on the US market (end of day).
Index factsheet

MSCI USA Large Cap

United States 2 ETFs 295
(31/10/16)
The MSCI USA Large Cap (price) index tracks US large cap stocks.
Index factsheet

Russell 3000®

United States 1 ETF 3,000
The Russell 3000® index tracks large, mid-sized and small US companies.
Index factsheet

S&P 500®

United States 14 ETFs 500
The S&P 500® (total return) index tracks 500 large cap US stocks.
Index factsheet
ETF
ISIN
  Fund size
in m EUR
TER
in %
Use of profits Fund domicile Replication method
iShares Core S&P 500 UCITS ETFIE00B5BMR087 17,113 0.07% p.a. Accumulating Ireland Full replication
iShares S&P 500 UCITS ETF (Dist)IE0031442068 7,453 0.40% p.a. Distributing Ireland Optimized sampling
db x-trackers MSCI USA Index UCITS ETF 1CLU0274210672 2,206 0.30% p.a. Accumulating Luxembourg Unfunded swap
Source S&P 500 UCITS ETF ADE000A1JM6F5 2,133 0.05% p.a. Accumulating Ireland Unfunded swap
HSBC S&P 500 UCITS ETF USDDE000A1C22M3 2,032 0.09% p.a. Distributing Ireland Full replication
db x-trackers MSCI USA Index UCITS ETF (DR) 1CIE00BJ0KDR00 1,942 0.07% p.a. Accumulating Ireland Full replication
db x-trackers S&P 500 UCITS ETF 1CLU0490618542 1,878 0.20% p.a. Accumulating Luxembourg Unfunded swap
Lyxor S&P 500 UCITS ETF D-EURLU0496786574 1,480 0.15% p.a. Distributing Luxembourg Unfunded swap
SPDR S&P 500 UCITS ETFIE00B6YX5C33 1,424 0.09% p.a. Distributing Ireland Full replication
Amundi ETF MSCI USA UCITS ETF EURFR0010688275 786 0.28% p.a. Accumulating France Unfunded swap
Amundi ETF S&P 500 UCITS ETF EURFR0010892224 774 0.15% p.a. Accumulating France Unfunded swap
Lyxor UCITS ETF MSCI USA D-EURFR0010296061 709 0.25% p.a. Distributing France Unfunded swap
UBS ETF (LU) MSCI USA UCITS ETF (USD) A-disLU0136234654 632 0.20% p.a. Distributing Luxembourg Full replication
BNP Paribas Easy S&P 500 UCITS ETF CFR0011550185 601 0.20% p.a. Accumulating France Unfunded swap
iShares MSCI USA UCITS ETFIE00B52SFT06 444 0.33% p.a. Accumulating Ireland Full replication
Deka MSCI USA UCITS ETFDE000ETFL268 372 0.30% p.a. Distributing Germany Full replication
iShares Dow Jones Industrial Average UCITS ETFIE00B53L4350 268 0.33% p.a. Accumulating Ireland Full replication
UBS ETF (IE) MSCI USA UCITS ETF (USD) A-disIE00B77D4428 256 0.20% p.a. Distributing Ireland Full replication
Lyxor S&P 500 UCITS ETF C-EURLU1135865084 238 0.15% p.a. Accumulating Luxembourg Unfunded swap
iShares Dow Jones Industrial Average UCITS ETF (DE)DE0006289390 234 0.51% p.a. Distributing Germany Full replication
HSBC MSCI USA UCITS ETF USDDE000A1C22K7 225 0.30% p.a. Distributing Ireland Full replication
UBS ETF (IE) S&P 500 UCITS ETF (USD) A-disIE00B7K93397 193 0.12% p.a. Distributing Ireland Full replication
Lyxor UCITS ETF Dow Jones Industrial Average D-EURFR0007056841 185 0.50% p.a. Distributing France Unfunded swap
UBS ETF (IE) S&P 500 SF UCITS ETF (USD) A-accIE00B4JY5R22 163 0.22% p.a. Accumulating Ireland Swap-based
ComStage MSCI USA TRN UCITS ETFLU0392495700 159 0.10% p.a. Accumulating Luxembourg Unfunded swap
UBS ETF (IE) MSCI USA SF UCITS ETF (USD) A-accIE00B3SC9K16 158 0.20% p.a. Accumulating Ireland Swap-based
ComStage S&P 500 UCITS ETFLU0488316133 117 0.12% p.a. Accumulating Luxembourg Unfunded swap
Source MSCI USA UCITS ETF AIE00B60SX170 75 0.30% p.a. Accumulating Ireland Unfunded swap
ComStage Dow Jones Industrial Average UCITS ETFLU0378437502 73 0.45% p.a. Accumulating Luxembourg Unfunded swap
Deka MSCI USA LC UCITS ETFDE000ETFL094 44 0.30% p.a. Distributing Germany Full replication
ComStage MSCI USA Large Cap TRN UCITS ETFLU0392495882 28 0.25% p.a. Accumulating Luxembourg Unfunded swap
SPDR Russell 3000 US Total Market UCITS ETFIE00BKY7WX37 10 0.25% p.a. Accumulating Ireland Optimized sampling
Source S&P 500 UCITS ETF BDE000A141DW0 - 0.05% p.a. Distributing Ireland Unfunded swap
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
MSCI USA Large Cap 5.64% 6.55% 10.40% 5.76% 59.35%
MSCI USA 6.38% 6.57% 10.58% 6.89% 63.50%
S&P 500® 6.45% 6.61% 10.51% 7.08% 64.12%
Russell 3000® 7.15% 6.98% 11.24% 7.12% -
Dow Jones Industrial Average 8.52% 9.35% 12.95% 9.52% 60.55%
Index   2016
in %
2015
in %
2014
in %
2013
in %
2012
in %
MSCI USA Large Cap 9.71% 12.45% 29.08% 26.16% 10.80%
MSCI USA 11.91% 12.54% 28.19% 25.90% 13.16%
S&P 500® 12.00% 12.62% 28.63% 26.03% 13.14%
Russell 3000® 12.53% 11.71% - - -
Dow Jones Industrial Average 14.50% 10.96% 24.15% 23.14% 7.30%

Source: justETF.com; As of 30/11/16; Calculations in EUR based on the largest ETF of the respective index.

 
Alternative investment opportunities

USA indices on small and mid caps or dividend strategies

Alternatively, you may consider indices on small and mid caps, single sectors or dividend strategies. Below, we selected 12 alternative USA indices, which are tracked by 23 ETFs as an example. The total expense ratio (TER) of ETFs on alternative USA indices is between 0.20% p.a. and 0.45% p.a..

 
Index Investment focus Number of ETFs Number of constituents Short description
Dow Jones US Select Dividend United States
Dividend
1 ETF 100
The Dow Jones US Select Dividend index tracks the 100 companies with the highest dividend yield in the US.
Index factsheet
FTSE RAFI US 1000 United States
Fundamental/Quality
1 ETF 1,000
The FTSE RAFI US 1000 Index tracks 1.000 of the largest listed U.S. companies. The FTSE RAFI Index Series selects and weights index constituents using four fundamental factors, rather than market capitalisation. The factors are dividends, cash flows, sales and book value.
MSCI USA Mid Cap United States
Mid Cap
2 ETFs 322
(31/10/16)
The MSCI USA Mid Cap (price) index tracks US mid cap stocks.
Index factsheet
MSCI USA Small Cap United States
Small Cap
2 ETFs 1,833
(31/10/16)
The MSCI USA Small Cap (total return) index tracks US small cap stocks.
Index factsheet
MSCI USA Value United States
Value
1 ETF 317
(31/10/16)
The MSCI USA Value index tracks the US value stocks. These are U.S equities which are determined as value stocks using eight historical and forward-looking fundamental data points.
Index factsheet
Nasdaq 100® United States
Technology
6 ETFs 100
The Nasdaq 100® (total return) index tracks a selection of 100 stocks chosen from among non-financial stocks listed on the NASDAQ stock exchange.
Russell 2000® United States
Small Cap
5 ETFs 2,000
The Russell 2000® index tracks US small cap stocks.
Index factsheet
S&P 500 Minimum Volatility United States
Low Volatility/Risk Weighted
1 ETF 100
The S&P 500 Minimum Volatility index tracks an optimized portfolio that includes a selection of stocks where volatility is among the lowest in the S&P 500®. The S&P 500® (total return) index tracks 500 large cap US stocks.
Index factsheet
S&P 500® Equal Weight United States
Equal Weighted
1 ETF 500
The S&P 500® Equal Weight (EWI) index tracks 500 large cap US stocks equally weighted with a fixed weight of 0.20%.
Index factsheet
S&P High Yield Dividend Aristocrats United States
Dividend
1 ETF 105
(31/10/16)
The S&P High Yield Dividend Aristocrats index tracks appr. 100 highest dividend-yielding constituents of the stocks of the S&P Composite 1500® index that have increased dividends every year for at least 20 consecutive years.
Index factsheet
S&P MidCap 400 United States
Mid Cap
1 ETF 400
The S&P MidCap 400 index tracks 400 mid-sized US companies.
Index factsheet
S&P SmallCap 600 United States
Small Cap
1 ETF 600
The S&P SmallCap 600 index tracks 600 small cap US stocks.
Index factsheet
ETF
ISIN
  Fund size
in m EUR
TER
in %
Use of profits Fund domicile Replication method
SPDR S&P US Dividend Aristocrats UCITS ETFIE00B6YX5D40 2,437 0.35% p.a. Distributing Ireland Full replication
iShares Edge S&P 500 Minimum Volatility UCITS ETFIE00B6SPMN59 1,299 0.20% p.a. Accumulating Ireland Optimized sampling
PowerShares EQQQ Nasdaq 100 UCITS ETFIE0032077012 1,229 0.30% p.a. Distributing Ireland Full replication
iShares Nasdaq 100 UCITS ETFIE00B53SZB19 908 0.33% p.a. Accumulating Ireland Full replication
iShares Nasdaq 100 UCITS ETF (DE)DE000A0F5UF5 871 0.31% p.a. Distributing Germany Full replication
iShares S&P SmallCap 600 UCITS ETFIE00B2QWCY14 792 0.40% p.a. Distributing Ireland Optimized sampling
SPDR S&P 400 US Mid Cap UCITS ETFIE00B4YBJ215 587 0.30% p.a. Accumulating Ireland Full replication
Lyxor UCITS ETF Nasdaq 100 D-EURFR0007063177 452 0.30% p.a. Distributing France Unfunded swap
UBS ETF (IE) MSCI USA Value UCITS ETF (USD) A-disIE00B78JSG98 450 0.20% p.a. Distributing Ireland Full replication
iShares MSCI USA Small Cap UCITS ETFIE00B3VWM098 437 0.43% p.a. Accumulating Ireland Optimized sampling
db x-trackers Russell 2000 UCITS ETF (DR) 1CIE00BJZ2DD79 396 0.45% p.a. Accumulating Ireland Optimized sampling
db x-trackers S&P 500 Equal Weight UCITS ETF (DR) 1CIE00BLNMYC90 374 0.25% p.a. Accumulating Ireland Full replication
iShares Dow Jones US Select Dividend UCITS ETF (DE)DE000A0D8Q49 343 0.31% p.a. Distributing Germany Full replication
PowerShares FTSE RAFI US 1000 UCITS ETFIE00B23D8S39 303 0.39% p.a. Distributing Ireland Full replication
Source Russell 2000 UCITS ETF AIE00B60SX402 280 0.45% p.a. Accumulating Ireland Unfunded swap
SPDR Russell 2000 US Small Cap UCITS ETFIE00BJ38QD84 267 0.30% p.a. Accumulating Ireland Optimized sampling
ComStage Nasdaq 100 UCITS ETFLU0378449770 210 0.25% p.a. Accumulating Luxembourg Unfunded swap
Amundi ETF Nasdaq 100 UCITS ETF EURFR0010892216 165 0.23% p.a. Accumulating France Unfunded swap
Amundi ETF Russell 2000 UCITS ETF EURFR0011636190 113 0.35% p.a. Accumulating France Unfunded swap
ComStage MSCI USA Small Cap TRN UCITS ETFLU0392496005 72 0.35% p.a. Accumulating Luxembourg Unfunded swap
Deka MSCI USA MC UCITS ETFDE000ETFL276 48 0.30% p.a. Distributing Germany Full replication
ETFS Russell 2000 US Small Cap GO UCITS ETFDE000A0Q8NE4 38 0.45% p.a. Accumulating Ireland Unfunded swap
ComStage MSCI USA Mid Cap TRN UCITS ETFLU0392495965 34 0.35% p.a. Accumulating Luxembourg Unfunded swap
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
Nasdaq 100® 2.99% 5.78% 11.84% 3.17% 80.05%
MSCI USA Mid Cap 8.39% 8.03% 12.60% 7.52% 59.45%
S&P 500® Equal Weight 8.16% 7.36% 11.77% 9.70% -
MSCI USA Value 7.76% 7.99% 12.47% 10.19% 59.81%
FTSE RAFI US 1000 9.92% 9.53% 13.80% 10.62% 61.06%
Russell 2000® 14.41% 11.63% 20.40% 10.69% -
MSCI USA Small Cap 12.51% 9.96% 16.75% 11.01% 56.23%
S&P MidCap 400 11.57% 9.12% 14.43% 11.91% 64.43%
S&P 500 Minimum Volatility 5.00% 4.73% 9.45% 12.03% 74.96%
S&P High Yield Dividend Aristocrats 7.93% 4.53% 9.49% 14.67% 68.78%
Dow Jones US Select Dividend 7.14% 6.75% 11.27% 14.96% 66.77%
S&P SmallCap 600 16.16% 13.09% 21.86% 15.15% 61.06%
Index   2016
in %
2015
in %
2014
in %
2013
in %
2012
in %
Nasdaq 100® 7.82% 21.75% 35.49% 30.37% 15.53%
MSCI USA Mid Cap 13.23% 9.00% 28.45% 29.36% 11.26%
S&P 500 Minimum Volatility 14.50% 16.38% 30.22% 21.83% -
S&P 500® Equal Weight 15.15% 8.44% - - -
MSCI USA Value 15.26% 8.64% 27.38% 25.42% -
FTSE RAFI US 1000 16.42% 7.77% 27.92% 28.97% 14.01%
Dow Jones US Select Dividend 19.35% 7.61% 30.40% 22.50% 5.35%
MSCI USA Small Cap 19.42% 7.10% 21.00% 30.85% 15.22%
S&P High Yield Dividend Aristocrats 19.93% 10.12% 28.45% 23.77% 8.62%
Russell 2000® 20.03% - - - -
S&P MidCap 400 20.27% 8.40% 24.05% 26.98% -
S&P SmallCap 600 23.78% 8.72% 19.36% 34.40% 13.39%

Source: justETF.com; As of 30/11/16; Calculations in EUR based on the largest ETF of the respective index.

 

North America indices with a large share of USA

Besides USA ETFs you may invest in ETFs on the North American stock market. In total, you can invest in 1 North America index, which is tracked by 2 ETFs. The MSCI North America index strongly weights American stocks with 94.25% (as of 31/10/2016). The total expense ratio (TER) of ETFs on Nordamerika is between 0.25% p.a. and 0.40% p.a..

 
Index Investment focus Number of ETFs Number of constituents Short description
MSCI North America North America
USA: 94.25%
(31/10/2016)
2 ETFs 710
(31/10/16)
The MSCI North America index tracks stocks from developed North American countries (Canada and United States).
Index factsheet
ETF
ISIN
  Fund size
in m EUR
TER
in %
Use of profits Fund domicile Replication method
iShares MSCI North America UCITS ETFIE00B14X4M10 1,986 0.40% p.a. Distributing Ireland Optimized sampling
ComStage MSCI North America TRN UCITS ETFLU0392494992 116 0.25% p.a. Accumulating Luxembourg Unfunded swap
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
MSCI North America 6.26% 6.45% 10.32% 6.60% 58.15%
Index   2016
in %
2015
in %
2014
in %
2013
in %
2012
in %
MSCI North America 11.54% 10.41% 26.84% 23.71% 12.47%

Source: justETF.com; As of 30/11/16; Calculations in EUR based on the largest ETF of the respective index.

 

Global indices with USA share of over 50%

As further alternative you may invest in global stock markets. In total, you can invest in 1 global index, which is tracked by 2 ETFs. The World indices strongly weight the USA with 52% to 78%. The total expense ratio (TER) of ETFs on global indices is between 0.15% p.a. and 0.60% p.a..

 
Index Investment focus Number of ETFs Number of constituents Short description
Dow Jones Global Titans 50 World
USA: 77.24%
(31/10/2016)
1 ETF 50
The Dow Jones Global Titans 50 (total return) index tracks 50 multinational companies traded on major exchanges worldwide.
Index factsheet
MSCI All Country World (ACWI) World
USA: 52.65%
(31/10/2016)
4 ETFs 2,470
(31/10/16)
The MSCI All Country World Index (ACWI) tracks stocks from developed and emerging countries worldwide. It covers 2,470 securities across large and mid cap size segments and consists of 46 country indices, of which 23 are developed and 23 are emerging markets (calculation based on end of day) (as of 30.01.2015).
Index factsheet
MSCI All Country World Investable Market (ACWI IMI) World
USA: 52.38%
(31/10/2016)
1 ETF 8,624
(31/10/16)
The MSCI All Country World Investable Market Index (ACWI IMI) tracks stocks from developed and emerging countries worldwide. It covers appr. 8.500 securities across large, mid and small cap size segments and consists of 46 country indices, of which approximately half are developed and half are emerging markets.
Index factsheet
MSCI World World
USA: 59.28%
(31/10/2016)
13 ETFs 1,637
(31/10/16)
The MSCI World index tracks stocks from 23 developed countries world wide (end of day). As of November 2015 the index consisted of 1.643 constituents.
Index factsheet
MSCI World ex EMU World
USA: 66.87%
(31/10/2016)
1 ETF 1,396
(31/10/16)
The MSCI World ex EMU index stocks from 13 developed countries world wide, excluding the European Monetary Union. The index consists of over 1.400 constituents.
Index factsheet
MSCI World ex Europe World
USA: 77.09%
(31/10/2016)
1 ETF 1,191
(31/10/16)
The MSCI World ex Europe index stocks from 8 developed countries world wide, excluding Europe.
Index factsheet
ETF
ISIN
  Fund size
in m EUR
TER
in %
Use of profits Fund domicile Replication method
iShares Core MSCI World UCITS ETFIE00B4L5Y983 7,629 0.20% p.a. Accumulating Ireland Optimized sampling
iShares MSCI World UCITS ETF (Dist)IE00B0M62Q58 5,228 0.50% p.a. Distributing Ireland Optimized sampling
db x-trackers MSCI World Index UCITS ETF 1CLU0274208692 2,316 0.45% p.a. Accumulating Luxembourg Unfunded swap
db x-trackers MSCI World Index UCITS ETF (DR) 1CIE00BJ0KDQ92 1,333 0.19% p.a. Accumulating Ireland Optimized sampling
Lyxor UCITS ETF MSCI World D-EURFR0010315770 1,267 0.30% p.a. Distributing France Unfunded swap
UBS ETF (LU) MSCI World UCITS ETF (USD) A-disLU0340285161 1,198 0.30% p.a. Distributing Luxembourg Full replication
ComStage MSCI World TRN UCITS ETFLU0392494562 880 0.20% p.a. Accumulating Luxembourg Unfunded swap
Source MSCI World UCITS ETF AIE00B60SX394 566 0.19% p.a. Accumulating Ireland Unfunded swap
Amundi ETF MSCI World UCITS ETF EURFR0010756098 505 0.38% p.a. Accumulating France Unfunded swap
iShares MSCI ACWI UCITS ETFIE00B6R52259 365 0.60% p.a. Accumulating Ireland Optimized sampling
SPDR MSCI ACWI UCITS ETFIE00B44Z5B48 353 0.40% p.a. Accumulating Ireland Optimized sampling
db x-trackers MSCI World Index UCITS ETF (DR) 1DIE00BK1PV551 327 0.19% p.a. Distributing Ireland Optimized sampling
iShares Dow Jones Global Titans 50 UCITS ETF (DE)DE0006289382 186 0.51% p.a. Distributing Germany Full replication
db x-trackers MSCI AC World Index UCITS ETF (DR) 1CIE00BGHQ0G80 134 0.50% p.a. Accumulating Ireland Optimized sampling
HSBC MSCI World UCITS ETF USDDE000A1C9KL8 132 0.15% p.a. Distributing Ireland Optimized sampling
Lyxor UCITS ETF MSCI All Country World C-EURFR0011079466 119 0.45% p.a. Accumulating France Unfunded swap
Amundi ETF MSCI World ex EMU UCITS ETFFR0010756114 100 0.35% p.a. Accumulating France Unfunded swap
Amundi ETF MSCI World ex Europe UCITS ETF EURFR0010756122 74 0.35% p.a. Accumulating France Unfunded swap
SPDR MSCI ACWI IMI UCITS ETFIE00B3YLTY66 38 0.40% p.a. Accumulating Ireland Optimized sampling
db x-trackers MSCI World Index UCITS ETF 3CLU0619015828 35 0.30% p.a. Accumulating Luxembourg Unfunded swap
UBS ETF (IE) MSCI World UCITS ETF (USD) A-disIE00B7KQ7B66 21 0.30% p.a. Distributing Ireland Optimized sampling
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
MSCI World 4.26% 4.83% 7.69% 2.81% 43.31%
MSCI All Country World (ACWI) 3.47% 4.37% 8.32% 3.17% 38.71%
MSCI World ex EMU 4.70% 5.36% 9.07% 4.10% 47.56%
Dow Jones Global Titans 50 4.19% 4.56% 9.17% 4.24% 42.86%
MSCI All Country World Investable Market (ACWI IMI) 3.81% 4.77% 9.16% 4.62% 43.59%
MSCI World ex Europe 5.14% 6.36% 10.92% 6.27% 54.37%
Index   2016
in %
2015
in %
2014
in %
2013
in %
2012
in %
MSCI World 7.72% 10.66% 19.34% 21.19% 13.28%
MSCI All Country World (ACWI) 7.93% 8.11% 18.02% 17.07% 13.71%
Dow Jones Global Titans 50 8.40% 11.29% 19.39% 16.63% 10.85%
MSCI World ex EMU 8.79% 10.61% 21.50% 20.87% 12.95%
MSCI All Country World Investable Market (ACWI IMI) 9.15% 9.76% 18.62% 18.35% 14.41%
MSCI World ex Europe 10.95% 11.24% 24.00% 21.76% 12.46%

Source: justETF.com; As of 30/11/16; Calculations in EUR based on the largest ETF of the respective index.