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 3 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%.
Performance of American stocks (S&P 500®)
Indices in comparison
The best indices for ETFs on USA
For an investment in the American stock market, 3 indices tracked by 22 ETFs are available. On the Dow Jones Industrial Average index there are 2 ETFs. On the MSCI USA index there are 9 ETFs. On the S&P 500® index there are 11 ETFs. The total expense ratio (TER) of ETFs on these indices is between 0.05% p.a. and 0.50% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
Dow Jones Industrial Average |
United States | 2 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 | 9 ETFs | 626 (31/08/18) |
The MSCI USA (total return) index tracks around 600 leading stocks on the US market (end of day).
Index factsheet |
S&P 500® |
United States | 11 ETFs | 500 |
The S&P 500® (total return) index tracks 500 large cap US stocks.
Index factsheet |
| ETF ISIN |
Fund size in m GBP |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares Core S&P 500 UCITS ETF (Acc)IE00B5BMR087 | 24,538 | 0.07% p.a. | Accumulating | Ireland | Full replication | |
| Vanguard S&P 500 UCITS ETFIE00B3XXRP09 | 18,586 | 0.07% p.a. | Distributing | Ireland | Full replication | |
| iShares S&P 500 UCITS ETF (Dist)IE0031442068 | 6,555 | 0.07% p.a. | Distributing | Ireland | Optimized sampling | |
| Xtrackers S&P 500 UCITS ETF 1CLU0490618542 | 3,507 | 0.15% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Xtrackers MSCI USA Index UCITS ETF 1CIE00BJ0KDR00 | 3,345 | 0.07% p.a. | Accumulating | Ireland | Full replication | |
| Invesco S&P 500 UCITS ETFIE00B3YCGJ38 | 3,168 | 0.05% p.a. | Accumulating | Ireland | Unfunded swap | |
| SPDR S&P 500 UCITS ETFIE00B6YX5C33 | 2,811 | 0.09% p.a. | Distributing | Ireland | Full replication | |
| Lyxor S&P 500 UCITS ETF D-USDLU0496786657 | 2,371 | 0.15% p.a. | Distributing | Luxembourg | Unfunded swap | |
| HSBC S&P 500 UCITS ETF USDIE00B5KQNG97 | 2,350 | 0.09% p.a. | Distributing | Ireland | Full replication | |
| Xtrackers MSCI USA Index UCITS ETF 1CLU0274210672 | 2,177 | 0.30% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Amundi ETF S&P 500 UCITS ETF - USDLU1681049018 | 1,006 | 0.15% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Lyxor MSCI USA UCITS ETF D-EURFR0010296061 | 934 | 0.25% p.a. | Distributing | France | Unfunded swap | |
| iShares Dow Jones Industrial Average UCITS ETF (Acc)IE00B53L4350 | 465 | 0.33% p.a. | Accumulating | Ireland | Full replication | |
| iShares MSCI USA UCITS ETF (Acc)IE00B52SFT06 | 451 | 0.33% p.a. | Accumulating | Ireland | Full replication | |
| UBS ETF (LU) MSCI USA UCITS ETF (USD) A-disLU0136234654 | 441 | 0.14% p.a. | Distributing | Luxembourg | Full replication | |
| Lyxor S&P 500 UCITS ETF C-EURLU1135865084 | 393 | 0.15% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| UBS ETF (IE) MSCI USA UCITS ETF (USD) A-disIE00B77D4428 | 228 | 0.14% p.a. | Distributing | Ireland | Full replication | |
| Lyxor Dow Jones Industrial Average UCITS ETF D-EURFR0007056841 | 220 | 0.50% p.a. | Distributing | France | Unfunded swap | |
| UBS ETF (IE) S&P 500 UCITS ETF (USD) A-disIE00B7K93397 | 216 | 0.12% p.a. | Distributing | Ireland | Full replication | |
| Amundi ETF MSCI USA UCITS ETF - USDLU1681042948 | 104 | 0.28% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Invesco MSCI USA UCITS ETFIE00B60SX170 | 56 | 0.19% p.a. | Accumulating | Ireland | Unfunded swap | |
| HSBC MSCI USA UCITS ETF USDIE00B5WFQ436 | 29 | 0.30% p.a. | Distributing | Ireland | Full replication |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| MSCI USA | -4.70% | -0.37% | 11.05% | 11.11% | 64.57% | |
| S&P 500® | -4.58% | -0.16% | 11.29% | 11.27% | 65.26% | |
| Dow Jones Industrial Average | -2.70% | 2.47% | 12.98% | 13.52% | 80.59% |
| Index | 2018 in % |
2017 in % |
2016 in % |
2015 in % |
2014 in % |
|
|---|---|---|---|---|---|---|
| MSCI USA | 7.85% | 11.74% | 33.93% | 6.07% | - | |
| S&P 500® | 9.02% | 10.57% | 34.38% | 6.11% | 20.17% | |
| Dow Jones Industrial Average | 9.16% | 15.91% | 39.34% | 4.56% | 15.99% |
Source: justETF.com; As of 31/10/18; Calculations in GBP based on the largest ETF of the respective index.
The best USA ETFs
by 1 year return
| 1 | iShares Dow Jones Industrial Average UCITS ETF (Acc) | 13.52% |
| 2 | Lyxor Dow Jones Industrial Average UCITS ETF D-EUR | 13.50% |
| 3 | Xtrackers S&P 500 UCITS ETF 1C | 11.61% |
The cheapest USA ETFs
by total expense ratio (TER)
| 1 | Invesco S&P 500 UCITS ETF | 0.05% p.a. |
| 2 | iShares Core S&P 500 UCITS ETF (Acc) | 0.07% p.a. |
| 3 | iShares S&P 500 UCITS ETF (Dist) | 0.07% p.a. |
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 20 ETFs as an example. The total expense ratio (TER) of ETFs on alternative USA indices is between 0.12% p.a. and 0.45% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
| 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 Small Cap | United States
Small Cap |
1 ETF | 1,789 (28/09/18) |
The MSCI USA Small Cap (total return) index tracks US small cap stocks.
Index factsheet |
| MSCI USA Value | United States
Value |
1 ETF | 356 (31/08/18) |
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 |
3 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 1000® Growth | United States
Growth |
1 ETF | 551 (31/12/17) |
The Russell 1000® Growth index tracks the large-cap growth segment of US equities.
Index factsheet |
| Russell 1000® Value | United States
Value |
1 ETF | 713 (31/12/17) |
The Russell 1000® Value index tracks the large-cap value segment of US equities.
Index factsheet |
| Russell 2000® | United States
Small Cap |
6 ETFs | 2,011 (31/08/18) |
The Russell 2000® index tracks US small cap stocks.
Index factsheet |
| S&P 500 Minimum Volatility | United States
Low Volatility/Risk Weighted |
2 ETFs | 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 | 111 (31/08/18) |
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 | 601 (31/08/18) |
The S&P SmallCap 600 index tracks 600 small cap US stocks.
Index factsheet |
| ETF ISIN |
Fund size in m GBP |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| SPDR S&P US Dividend Aristocrats UCITS ETFIE00B6YX5D40 | 1,959 | 0.35% p.a. | Distributing | Ireland | Full replication | |
| Invesco NASDAQ-100 UCITS ETFIE0032077012 | 1,917 | 0.30% p.a. | Distributing | Ireland | Full replication | |
| iShares Nasdaq 100 UCITS ETF (Acc)IE00B53SZB19 | 1,847 | 0.33% p.a. | Accumulating | Ireland | Full replication | |
| iShares S&P SmallCap 600 UCITS ETFIE00B2QWCY14 | 1,088 | 0.40% p.a. | Distributing | Ireland | Optimized sampling | |
| iShares Edge S&P 500 Minimum Volatility UCITS ETF (Acc)IE00B6SPMN59 | 827 | 0.20% p.a. | Accumulating | Ireland | Optimized sampling | |
| SPDR S&P 400 US Mid Cap UCITS ETFIE00B4YBJ215 | 704 | 0.30% p.a. | Accumulating | Ireland | Full replication | |
| Xtrackers Russell 2000 UCITS ETF 1CIE00BJZ2DD79 | 575 | 0.30% p.a. | Accumulating | Ireland | Full replication | |
| Lyxor Nasdaq 100 UCITS ETF D-EURFR0007063177 | 575 | 0.30% p.a. | Distributing | France | Unfunded swap | |
| SPDR Russell 2000 US Small Cap UCITS ETFIE00BJ38QD84 | 497 | 0.30% p.a. | Accumulating | Ireland | Optimized sampling | |
| iShares MSCI USA Small Cap UCITS ETF (Acc)IE00B3VWM098 | 471 | 0.43% p.a. | Accumulating | Ireland | Optimized sampling | |
| Xtrackers S&P 500 Equal Weight UCITS ETF 1CIE00BLNMYC90 | 428 | 0.25% p.a. | Accumulating | Ireland | Full replication | |
| UBS ETF (IE) MSCI USA Value UCITS ETF (USD) A-disIE00B78JSG98 | 399 | 0.20% p.a. | Distributing | Ireland | Full replication | |
| Invesco FTSE RAFI US 1000 UCITS ETFIE00B23D8S39 | 273 | 0.39% p.a. | Distributing | Ireland | Full replication | |
| Invesco Russell 2000 UCITS ETFIE00B60SX402 | 161 | 0.45% p.a. | Accumulating | Ireland | Unfunded swap | |
| Lyxor Russell 1000 Growth UCITS ETF C-USDFR0011119171 | 114 | 0.19% p.a. | Accumulating | France | Unfunded swap | |
| L&G Russell 2000 US Small Cap UCITS ETFIE00B3CNHJ55 | 44 | 0.12% p.a. | Accumulating | Ireland | Unfunded swap | |
| Amundi ETF Russell 2000 UCITS ETF - USDLU1681038839 | 28 | 0.35% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Lyxor Russell 1000 Value UCITS ETF C-USDFR0011119205 | 16 | 0.19% p.a. | Accumulating | France | Unfunded swap | |
| Lyxor Russell 2000 UCITS ETF C-USDFR0011119254 | 5 | 0.19% p.a. | Accumulating | France | Unfunded swap | |
| iShares Edge S&P 500 Minimum Volatility UCITS ETF USD (Dist)IE00BD93YH54 | 4 | 0.20% p.a. | Distributing | Ireland | Optimized sampling |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| S&P MidCap 400 | -7.38% | -4.77% | 5.60% | 4.45% | 56.83% | |
| Russell 2000® | -8.71% | -6.39% | 6.07% | 5.41% | 60.36% | |
| MSCI USA Small Cap | -8.01% | -5.07% | 7.07% | 6.35% | 61.75% | |
| Russell 1000® Value | -2.88% | -0.54% | 8.77% | 6.79% | 53.67% | |
| MSCI USA Value | -2.08% | 0.38% | 10.25% | 7.04% | 56.29% | |
| S&P 500® Equal Weight | -5.02% | -2.29% | 7.63% | 8.14% | 57.51% | |
| FTSE RAFI US 1000 | -3.78% | -1.26% | 9.34% | 8.56% | 58.58% | |
| S&P SmallCap 600 | -8.39% | -6.30% | 8.42% | 9.25% | 70.28% | |
| S&P High Yield Dividend Aristocrats | -2.48% | 0.43% | 11.79% | 9.73% | 64.45% | |
| S&P 500 Minimum Volatility | -3.05% | 1.38% | 11.79% | 11.82% | 60.57% | |
| Russell 1000® Growth | -6.75% | -0.39% | 12.80% | 15.00% | 76.26% | |
| Nasdaq 100® | -6.42% | -2.56% | 14.06% | 16.67% | 84.39% |
| Index | 2018 in % |
2017 in % |
2016 in % |
2015 in % |
2014 in % |
|
|---|---|---|---|---|---|---|
| S&P MidCap 400 | 2.68% | 5.31% | 44.53% | 2.13% | 15.90% | |
| Russell 2000® | 3.65% | 5.29% | 45.10% | - | - | |
| S&P 500® Equal Weight | 4.02% | 8.85% | 37.55% | 2.17% | - | |
| Russell 1000® Value | 4.29% | 3.20% | 40.74% | 0.52% | - | |
| MSCI USA Value | 4.81% | 4.46% | 39.90% | 2.40% | 19.66% | |
| MSCI USA Small Cap | 5.19% | 6.10% | 43.53% | 0.92% | 13.05% | |
| FTSE RAFI US 1000 | 5.58% | 5.31% | 40.51% | 1.57% | 18.72% | |
| S&P High Yield Dividend Aristocrats | 6.40% | 5.23% | 43.97% | 3.82% | 20.26% | |
| S&P 500 Minimum Volatility | 7.30% | 6.34% | 36.57% | 9.66% | 21.65% | |
| S&P SmallCap 600 | 8.35% | 2.59% | 51.73% | 2.38% | 11.61% | |
| Russell 1000® Growth | 13.02% | 18.60% | 28.77% | 10.76% | -9.10% | |
| Nasdaq 100® | 16.14% | 20.57% | 28.65% | 14.77% | 26.12% |
Source: justETF.com; As of 31/10/18; Calculations in GBP 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 3 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 | 680 (31/08/18) |
The FTSE North America index tracks stocks in USA and Canada.
Index factsheet |
| MSCI North America | North America
USA: 94,34% (29/12/2017) |
2 ETFs | 717 (31/08/18) |
The MSCI North America index tracks stocks from developed North American countries (Canada and United States).
Index factsheet |
| ETF ISIN |
Fund size in m GBP |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares MSCI North America UCITS ETFIE00B14X4M10 | 1,620 | 0.40% p.a. | Distributing | Ireland | Optimized sampling | |
| Amundi ETF MSCI North America UCITS ETF DRLU1437016543 | 715 | 0.15% p.a. | Accumulating | Luxembourg | Full replication | |
| Vanguard FTSE North America UCITS ETFIE00BKX55R35 | 139 | 0.10% p.a. | Distributing | Ireland | Optimized sampling |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| MSCI North America | -4.76% | -0.71% | 10.39% | 10.07% | 61.90% | |
| FTSE North America | -4.64% | -0.56% | 10.60% | 10.40% | 63.63% |
| Index | 2018 in % |
2017 in % |
2016 in % |
2015 in % |
2014 in % |
|
|---|---|---|---|---|---|---|
| MSCI North America | 7.92% | 10.03% | 34.38% | 4.04% | 18.73% | |
| FTSE North America | 8.18% | 10.50% | 34.84% | 4.20% | - |
Source: justETF.com; As of 31/10/18; Calculations in GBP 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 3 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) |
3 ETFs | 2,791 (28/09/18) |
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) |
12 ETFs | 1,642 (31/08/18) |
The MSCI World index tracks stocks from 23 developed countries world wide. As of August2018 the index consisted of 1.642 constituents.
Index factsheet |
| ETF ISIN |
Fund size in m GBP |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares Core MSCI World UCITS ETF USD (Acc)IE00B4L5Y983 | 12,361 | 0.20% p.a. | Accumulating | Ireland | Optimized sampling | |
| iShares MSCI World UCITS ETF (Dist)IE00B0M62Q58 | 4,108 | 0.50% p.a. | Distributing | Ireland | Optimized sampling | |
| Xtrackers MSCI World Index UCITS ETF 1CIE00BJ0KDQ92 | 2,604 | 0.19% p.a. | Accumulating | Ireland | Optimized sampling | |
| Xtrackers MSCI World Index Swap UCITS ETF 1CLU0274208692 | 2,006 | 0.45% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Lyxor MSCI World UCITS ETF D-EURFR0010315770 | 1,664 | 0.30% p.a. | Distributing | France | Unfunded swap | |
| UBS ETF (LU) MSCI World UCITS ETF (USD) A-disLU0340285161 | 946 | 0.30% p.a. | Distributing | Luxembourg | Full replication | |
| SPDR MSCI ACWI UCITS ETFIE00B44Z5B48 | 945 | 0.40% p.a. | Accumulating | Ireland | Optimized sampling | |
| Invesco MSCI World UCITS ETFIE00B60SX394 | 576 | 0.19% p.a. | Accumulating | Ireland | Unfunded swap | |
| Xtrackers MSCI World Index UCITS ETF 1DIE00BK1PV551 | 561 | 0.19% p.a. | Distributing | Ireland | Optimized sampling | |
| HSBC MSCI World UCITS ETF USDIE00B4X9L533 | 520 | 0.15% p.a. | Distributing | Ireland | Optimized sampling | |
| iShares MSCI ACWI UCITS ETF (Acc)IE00B6R52259 | 472 | 0.60% p.a. | Accumulating | Ireland | Optimized sampling | |
| Xtrackers MSCI AC World Index UCITS ETF 1CIE00BGHQ0G80 | 253 | 0.40% p.a. | Accumulating | Ireland | Optimized sampling | |
| SPDR MSCI ACWI IMI UCITS ETFIE00B3YLTY66 | 70 | 0.40% p.a. | Accumulating | Ireland | Optimized sampling | |
| Lyxor Core MSCI World (DR) UCITS ETFLU1781541179 | 63 | 0.12% p.a. | Accumulating | Luxembourg | Optimized sampling | |
| Amundi ETF MSCI World UCITS ETF DRLU1437016972 | 60 | 0.18% p.a. | Accumulating | Luxembourg | Full replication | |
| Lyxor DJ Global Titans 50 UCITS ETF D-EURFR0007075494 | 56 | 0.40% p.a. | Distributing | France | Unfunded swap | |
| Amundi ETF MSCI World UCITS ETF - USDLU1681043672 | 13 | 0.38% p.a. | Accumulating | Luxembourg | Unfunded swap |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| MSCI All Country World Investable Market (ACWI IMI) | -5.55% | -3.62% | 3.19% | 3.04% | 51.46% | |
| MSCI All Country World (ACWI) | -5.24% | -3.34% | 3.41% | 3.37% | 51.68% | |
| MSCI World | -5.07% | -2.56% | 5.54% | 5.32% | 51.86% | |
| Dow Jones Global Titans 50 | -3.92% | 0.23% | 11.72% | 10.61% | 62.85% |
| Index | 2018 in % |
2017 in % |
2016 in % |
2015 in % |
2014 in % |
|
|---|---|---|---|---|---|---|
| MSCI All Country World Investable Market (ACWI IMI) | 1.61% | 12.23% | 31.86% | 3.43% | 10.82% | |
| MSCI All Country World (ACWI) | 1.77% | 12.79% | 31.29% | 2.47% | 10.09% | |
| MSCI World | 3.77% | 11.50% | 29.83% | 4.26% | 11.52% | |
| Dow Jones Global Titans 50 | 9.40% | 10.17% | 32.34% | 4.96% | 10.95% |
Source: justETF.com; As of 31/10/18; Calculations in GBP based on the largest ETF of the respective index.