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 4 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 are tracked by ETFs
on the American stock market
The best indices for USA ETFs

Performance of American stocks (S&P 500®)

1 month: 4.00%
1 year: 11.26%
3 years: 34.82%
5 years: 116.25%

Indices in comparison

The best indices for ETFs on USA

For an investment in the American stock market, 4 indices tracked by 30 ETFs are available. On the Dow Jones Industrial Average index there are 4 ETFs. On the MSCI USA index there are 11 ETFs. On the MSCI USA Large Cap 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 11 ETFs 633
(29.12.17)
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 1 ETF 304
(29.12.17)
The MSCI USA Large Cap (price) index tracks US large cap stocks.
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 ETF (Acc)IE00B5BMR087 24,563 0.07% p.a. Accumulating Ireland Full replication
Vanguard S&P 500 UCITS ETFIE00B3XXRP09 20,669 0.07% p.a. Distributing Ireland Full replication
iShares S&P 500 UCITS ETF (Dist)IE0031442068 7,058 0.07% p.a. Distributing Ireland Optimized sampling
Xtrackers MSCI USA Index UCITS ETF 1CIE00BJ0KDR00 3,615 0.07% p.a. Accumulating Ireland Full replication
Xtrackers S&P 500 UCITS ETF 1CLU0490618542 3,257 0.15% p.a. Accumulating Luxembourg Unfunded swap
HSBC S&P 500 UCITS ETF USDDE000A1C22M3 2,905 0.09% p.a. Distributing Ireland Full replication
Lyxor S&P 500 UCITS ETF D-EURLU0496786574 2,797 0.15% p.a. Distributing Luxembourg Unfunded swap
SPDR S&P 500 UCITS ETFIE00B6YX5C33 2,571 0.09% p.a. Distributing Ireland Full replication
Xtrackers MSCI USA Index UCITS ETF 1CLU0274210672 2,559 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
Amundi MSCI USA UCITS ETF - EUR (C)LU1681042864 1,308 0.28% p.a. Accumulating Luxembourg Unfunded swap
Amundi S&P 500 UCITS ETF - EUR (C)LU1681048804 1,299 0.15% p.a. Accumulating Luxembourg Unfunded swap
Lyxor MSCI USA UCITS ETF D-EURFR0010296061 1,041 0.25% p.a. Distributing France Unfunded swap
BNP Paribas Easy S&P 500 UCITS ETF EURFR0011550185 772 0.15% p.a. Accumulating France Unfunded swap
iShares MSCI USA UCITS ETF (Acc)IE00B52SFT06 510 0.33% p.a. Accumulating Ireland Full replication
UBS ETF (LU) MSCI USA UCITS ETF (USD) A-disLU0136234654 483 0.14% p.a. Distributing Luxembourg Full replication
Lyxor S&P 500 UCITS ETF C-EURLU1135865084 421 0.15% p.a. Accumulating Luxembourg Unfunded swap
Deka MSCI USA UCITS ETFDE000ETFL268 370 0.30% p.a. Distributing Germany Full replication
iShares Dow Jones Industrial Average UCITS ETF (DE)DE0006289390 318 0.51% p.a. Distributing Germany Full replication
iShares Dow Jones Industrial Average UCITS ETF (Acc)IE00B53L4350 304 0.33% p.a. Accumulating Ireland Full replication
UBS ETF (IE) MSCI USA UCITS ETF (USD) A-disIE00B77D4428 262 0.14% p.a. Distributing Ireland Full replication
Lyxor Dow Jones Industrial Average UCITS ETF D-EURFR0007056841 224 0.50% p.a. Distributing France Unfunded swap
UBS ETF (IE) S&P 500 UCITS ETF (USD) A-disIE00B7K93397 218 0.12% p.a. Distributing Ireland Full replication
ComStage S&P 500 UCITS ETFLU0488316133 146 0.12% p.a. Distributing Luxembourg Unfunded swap
ComStage MSCI USA TRN UCITS ETFLU0392495700 124 0.10% p.a. Distributing Luxembourg Unfunded swap
HSBC MSCI USA UCITS ETF USDDE000A1C22K7 67 0.30% p.a. Distributing Ireland Full replication
Source MSCI USA UCITS ETF AIE00B60SX170 64 0.19% p.a. Accumulating Ireland Unfunded swap
ComStage Dow Jones Industrial Average UCITS ETFLU0378437502 63 0.45% p.a. Distributing Luxembourg Unfunded swap
Deka MSCI USA Large Cap UCITS ETFDE000ETFL094 40 0.30% p.a. Distributing Germany Full replication
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 %
S&P 500® 5.69% 4.51% 4.30% 9.34% 26.74%
MSCI USA Large Cap 5.01% 3.36% 4.80% 9.38% 25.32%
MSCI USA 5.72% 4.67% 4.45% 9.40% 26.00%
Dow Jones Industrial Average 4.54% 2.13% 2.39% 12.67% 31.77%
Index   2018
in %
2017
in %
2016
in %
2015
in %
2014
in %
Dow Jones Industrial Average 1.75% 11.18% 17.91% 10.26% 24.94%
MSCI USA 3.77% 7.64% 14.80% 12.56% -
MSCI USA Large Cap 4.30% 6.48% 13.07% 12.50% 29.30%
S&P 500® 4.43% 6.71% 15.20% 12.62% 28.63%

Source: justETF.com; As of 31.05.18; 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 98
(29.12.17)
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.
Index factsheet
MSCI USA Mid Cap United States
Mid Cap
1 ETF 329
(29.12.17)
The MSCI USA Mid Cap (price) index tracks US mid cap stocks.
Index factsheet
MSCI USA Small Cap United States
Small Cap
1 ETF 1,799
(29.12.17)
The MSCI USA Small Cap (total return) index tracks US small cap stocks.
Index factsheet
MSCI USA Value United States
Value
1 ETF 341
(29.12.17)
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® index tracks a selection of 100 stocks chosen from among non-financial stocks listed on the NASDAQ stock exchange.
Index factsheet
Russell 2000® United States
Small Cap
5 ETFs 1,983
(31.12.17)
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 107
(29.12.17)
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
2 ETFs 400
The S&P MidCap 400 index tracks 400 mid-sized US companies.
Index factsheet
S&P SmallCap 600 United States
Small Cap
2 ETFs 601
(29.12.17)
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
PowerShares EQQQ Nasdaq 100 UCITS ETFIE0032077012 2,156 0.30% p.a. Distributing Ireland Full replication
SPDR S&P US Dividend Aristocrats UCITS ETFIE00B6YX5D40 1,965 0.35% p.a. Distributing Ireland Full replication
iShares Nasdaq 100 UCITS ETF (Acc)IE00B53SZB19 1,858 0.33% p.a. Accumulating Ireland Full replication
iShares Nasdaq 100 UCITS ETF (DE)DE000A0F5UF5 1,116 0.31% p.a. Distributing Germany Full replication
iShares S&P SmallCap 600 UCITS ETFIE00B2QWCY14 920 0.40% p.a. Distributing Ireland Optimized sampling
SPDR S&P 400 US Mid Cap UCITS ETFIE00B4YBJ215 902 0.30% p.a. Accumulating Ireland Full replication
iShares Edge S&P 500 Minimum Volatility UCITS ETF (Acc)IE00B6SPMN59 890 0.20% p.a. Accumulating Ireland Optimized sampling
Lyxor Nasdaq 100 UCITS ETF D-EURFR0007063177 598 0.30% p.a. Distributing France Unfunded swap
Xtrackers Russell 2000 UCITS ETF 1CIE00BJZ2DD79 587 0.30% p.a. Accumulating Ireland Full replication
SPDR Russell 2000 US Small Cap UCITS ETFIE00BJ38QD84 563 0.30% p.a. Accumulating Ireland Optimized sampling
iShares MSCI USA Small Cap UCITS ETF (Acc)IE00B3VWM098 542 0.43% p.a. Accumulating Ireland Optimized sampling
Xtrackers S&P 500 Equal Weight UCITS ETF 1CIE00BLNMYC90 520 0.25% p.a. Accumulating Ireland Full replication
UBS ETF (IE) MSCI USA Value UCITS ETF (USD) A-disIE00B78JSG98 446 0.20% p.a. Distributing Ireland Full replication
ComStage Nasdaq 100 UCITS ETFLU0378449770 357 0.25% p.a. Distributing Luxembourg Unfunded swap
iShares Dow Jones US Select Dividend UCITS ETF (DE)DE000A0D8Q49 298 0.31% p.a. Distributing Germany Full replication
Amundi NASDAQ 100 UCITS ETF - EUR (C)LU1681038243 273 0.23% p.a. Accumulating Luxembourg Unfunded swap
Source Russell 2000 UCITS ETF AIE00B60SX402 265 0.45% p.a. Accumulating Ireland Unfunded swap
PowerShares FTSE RAFI US 1000 UCITS ETFIE00B23D8S39 259 0.39% p.a. Distributing Ireland Full replication
Amundi Russell 2000 UCITS ETF - EUR (C)LU1681038672 147 0.35% p.a. Accumulating Luxembourg Unfunded swap
ComStage S&P SmallCap 600 UCITS ETFLU0392496005 83 0.35% p.a. Distributing Luxembourg Unfunded swap
L&G Russell 2000 US Small Cap UCITS ETFDE000A0Q8NE4 47 0.45% p.a. Accumulating Ireland Unfunded swap
ComStage S&P MidCap 400 UCITS ETFLU0392495965 22 0.35% p.a. Distributing Luxembourg Unfunded swap
Deka MSCI USA MC UCITS ETFDE000ETFL276 18 0.30% p.a. Distributing Germany Full replication
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
MSCI USA Value 3.67% 2.80% -0.58% 3.28% 16.55%
Dow Jones US Select Dividend 4.54% 6.41% 1.46% 3.79% 25.12%
S&P High Yield Dividend Aristocrats 4.47% 5.33% 0.17% 3.93% 25.15%
S&P 500 Minimum Volatility 4.70% 4.34% 1.75% 5.11% 25.35%
FTSE RAFI US 1000 4.80% 4.66% 2.45% 6.97% 19.25%
S&P 500® Equal Weight 4.66% 5.18% 3.03% 7.07% 20.46%
S&P MidCap 400 7.44% 9.26% 4.30% 9.49% 23.40%
MSCI USA Mid Cap 4.89% 5.65% 4.69% 9.56% 19.32%
MSCI USA Small Cap 8.88% 11.69% 6.98% 14.13% 25.40%
Russell 2000® 9.46% 13.02% 7.59% 15.21% 25.66%
Nasdaq 100® 9.06% 6.30% 11.19% 16.18% 48.16%
S&P SmallCap 600 9.82% 14.41% 8.74% 17.17% 36.02%
Index   2018
in %
2017
in %
2016
in %
2015
in %
2014
in %
MSCI USA Value -0.58% 0.79% 19.92% 8.68% 28.08%
S&P High Yield Dividend Aristocrats 0.30% 1.54% 23.41% 10.18% 28.76%
S&P 500 Minimum Volatility 1.25% 2.60% 17.07% 16.38% 30.22%
Dow Jones US Select Dividend 2.05% 0.07% 23.34% 7.65% 30.94%
FTSE RAFI US 1000 2.06% 1.61% 20.53% 7.78% 27.00%
S&P 500® Equal Weight 2.22% 4.85% 17.89% 8.44% -
MSCI USA Mid Cap 4.65% 4.72% 14.56% 8.98% 28.58%
S&P MidCap 400 5.38% 1.61% 23.91% 8.40% 24.05%
MSCI USA Small Cap 7.90% 2.39% 23.03% 7.10% 21.00%
Russell 2000® 8.10% 1.40% 24.39% - -
S&P SmallCap 600 10.70% -1.01% 30.05% 8.68% 19.44%
Nasdaq 100® 12.00% 16.36% 10.28% 21.80% 35.00%

Source: justETF.com; As of 31.05.18; 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 2 North America indices, which are tracked by 4 ETFs. The MSCI North America index strongly weights American stocks with 94,34% (as of 29/12/2017). The total expense ratio (TER) of ETFs on Nordamerika is between 0.10% p.a. and 0.40% p.a..

 
Index Investment focus Number of ETFs Number of constituents Short description
FTSE North America North America
USA: 94,64%
(29/12/2017)
1 ETF 677
(29.12.17)
The FTSE North America index tracks stocks in USA and Canada.
Index factsheet
MSCI North America North America
USA: 94,34%
(29/12/2017)
3 ETFs 725
(29.12.17)
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 1,799 0.40% p.a. Distributing Ireland Optimized sampling
ComStage MSCI North America TRN UCITS ETFLU0392494992 138 0.25% p.a. Distributing Luxembourg Unfunded swap
Vanguard FTSE North America UCITS ETFIE00BKX55R35 137 0.10% p.a. Distributing Ireland Optimized sampling
Amundi Index MSCI North America UCITS ETF - EUR (D)LU1737653045 1 0.15% p.a. Distributing Luxembourg Full replication
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
MSCI North America 5.66% 4.77% 4.17% 8.98% 23.57%
FTSE North America 5.69% 4.73% 4.30% 9.34% 24.82%
Index   2018
in %
2017
in %
2016
in %
2015
in %
2014
in %
MSCI North America 4.18% 6.18% 15.19% 10.42% 27.05%
FTSE North America 4.26% 6.63% 15.58% 10.61% -

Source: justETF.com; As of 31.05.18; 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 2 global indices, which are tracked by 4 ETFs. The World indices strongly weight the USA with 52% to 78%. The total expense ratio (TER) of ETFs on global indices is between 0.12% 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: 76.40%
(29/12/2017)
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: 52.02%
(29/12/2017)
4 ETFs 2,499
(29.12.17)
The MSCI All Country World Index (ACWI) tracks stocks from developed and emerging countries worldwide. It covers 2,477 securities across large and mid cap size segments and consists of 46 country indices, of which 23 are developed and 23 are emerging markets.
Index factsheet
MSCI All Country World Investable Market (ACWI IMI) World
USA: 51.70%
(29/12/2017)
1 ETF 8,653
(29.12.17)
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: 59.21%
(29/12/2017)
14 ETFs 1,653
(29.12.17)
The MSCI World index tracks stocks from 23 developed countries world wide. As of January 2017 the index consisted of 1.654 constituents.
Index factsheet
MSCI World ex EMU World
USA: 67.37%
(29/12/2017)
1 ETF 1,405
(29.12.17)
The MSCI World ex EMU index stocks from 13 developed countries world wide, excluding the European Monetary Union. The index consists of appr. 1.400 constituents.
Index factsheet
MSCI World ex Europe World
USA: 77.55%
(29/12/2017)
1 ETF 1,207
(29.12.17)
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 ETF USD (Acc)IE00B4L5Y983 12,409 0.20% p.a. Accumulating Ireland Optimized sampling
iShares MSCI World UCITS ETF (Dist)IE00B0M62Q58 4,748 0.50% p.a. Distributing Ireland Optimized sampling
Xtrackers MSCI World Index Swap UCITS ETF 1CLU0274208692 2,891 0.45% p.a. Accumulating Luxembourg Unfunded swap
Xtrackers MSCI World Index UCITS ETF 1CIE00BJ0KDQ92 2,778 0.19% p.a. Accumulating Ireland Optimized sampling
Lyxor MSCI World UCITS ETF D-EURFR0010315770 1,715 0.30% p.a. Distributing France Unfunded swap
ComStage MSCI World TRN UCITS ETFLU0392494562 1,435 0.20% p.a. Distributing Luxembourg Unfunded swap
SPDR MSCI ACWI UCITS ETFIE00B44Z5B48 1,131 0.40% p.a. Accumulating Ireland Optimized sampling
UBS ETF (LU) MSCI World UCITS ETF (USD) A-disLU0340285161 1,062 0.30% p.a. Distributing Luxembourg Full replication
Amundi MSCI World UCITS ETF - EUR (C)LU1681043599 756 0.38% p.a. Accumulating Luxembourg Unfunded swap
Source MSCI World UCITS ETF AIE00B60SX394 632 0.19% p.a. Accumulating Ireland Unfunded swap
Xtrackers MSCI World Index UCITS ETF 1DIE00BK1PV551 629 0.19% p.a. Distributing Ireland Optimized sampling
iShares MSCI ACWI UCITS ETF (Acc)IE00B6R52259 614 0.60% p.a. Accumulating Ireland Optimized sampling
HSBC MSCI World UCITS ETF USDDE000A1C9KL8 488 0.15% p.a. Distributing Ireland Optimized sampling
Lyxor MSCI All Country World UCITS ETF C-EURFR0011079466 366 0.45% p.a. Accumulating France Unfunded swap
Xtrackers MSCI AC World Index UCITS ETF 1CIE00BGHQ0G80 261 0.40% p.a. Accumulating Ireland Optimized sampling
iShares Dow Jones Global Titans 50 UCITS ETF (DE)DE0006289382 220 0.51% p.a. Distributing Germany Full replication
Amundi ETF MSCI World ex EMU UCITS ETF - EUR (C)FR0010756114 181 0.35% p.a. Accumulating France Unfunded swap
Amundi MSCI World ex Europe UCITS ETF - EUR (C)LU1681045537 151 0.35% p.a. Accumulating Luxembourg Unfunded swap
UBS ETF (IE) MSCI World UCITS ETF (USD) A-disIE00B7KQ7B66 70 0.30% p.a. Distributing Ireland Optimized sampling
SPDR MSCI ACWI IMI UCITS ETFIE00B3YLTY66 63 0.40% p.a. Accumulating Ireland Optimized sampling
Lyxor Core MSCI World (DR) UCITS ETFLU1781541179 35 0.12% p.a. Accumulating Luxembourg Optimized sampling
Amundi Index MSCI World UCITS ETF - EUR (D)LU1737652237 8 0.18% p.a. Distributing Luxembourg Full replication
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
MSCI World 3.93% 4.00% 3.24% 7.11% 17.45%
MSCI All Country World Investable Market (ACWI IMI) 3.42% 3.50% 3.11% 7.18% 17.53%
Dow Jones Global Titans 50 5.14% 3.95% 4.42% 7.24% 21.71%
MSCI All Country World (ACWI) 3.35% 3.30% 3.02% 7.34% 17.70%
MSCI World ex EMU 4.90% 4.30% 4.41% 7.82% 17.37%
MSCI World ex Europe 5.37% 4.34% 4.72% 9.08% 21.08%
Index   2018
in %
2017
in %
2016
in %
2015
in %
2014
in %
MSCI All Country World (ACWI) 2.59% 8.84% 12.54% 8.75% 17.84%
MSCI All Country World Investable Market (ACWI IMI) 2.72% 8.30% 13.04% 9.76% 18.62%
MSCI World 3.08% 7.61% 11.28% 10.66% 19.34%
MSCI World ex EMU 3.56% 6.45% 11.49% 10.61% 21.50%
Dow Jones Global Titans 50 3.83% 6.10% 12.71% 11.38% 19.60%
MSCI World ex Europe 4.14% 6.29% 13.33% 11.24% 24.00%

Source: justETF.com; As of 31.05.18; Calculations in EUR based on the largest ETF of the respective index.