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 13 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. - 0.50% 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: 2.84%
1 year: 12.70%
3 years: 54.07%
5 years: 125.10%

Indices in comparison

The best indices for ETFs on USA

For an investment in the American stock market, 3 indices tracked by 23 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 12 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 623
(31/03/19)
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 12 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 26,895 0.07% p.a. Accumulating Ireland Full replication
Vanguard S&P 500 UCITS ETFIE00B3XXRP09 18,364 0.07% p.a. Distributing Ireland Full replication
iShares Core S&P 500 UCITS ETF USD (Dist)IE0031442068 7,601 0.07% p.a. Distributing Ireland Optimized sampling
Xtrackers S&P 500 UCITS ETF 1CLU0490618542 5,175 0.15% p.a. Accumulating Luxembourg Unfunded swap
Invesco S&P 500 UCITS ETFIE00B3YCGJ38 4,515 0.05% p.a. Accumulating Ireland Unfunded swap
Xtrackers MSCI USA Index UCITS ETF 1CIE00BJ0KDR00 4,245 0.07% p.a. Accumulating Ireland Full replication
SPDR S&P 500 UCITS ETFIE00B6YX5C33 2,987 0.09% p.a. Distributing Ireland Full replication
HSBC S&P 500 UCITS ETF USDIE00B5KQNG97 2,482 0.09% p.a. Distributing Ireland Full replication
Xtrackers MSCI USA Index UCITS ETF 1CLU0274210672 2,179 0.30% p.a. Accumulating Luxembourg Unfunded swap
Lyxor S&P 500 UCITS ETF D-USDLU0496786657 1,921 0.15% p.a. Distributing Luxembourg Unfunded swap
Amundi ETF S&P 500 UCITS ETF - USDLU1681049018 1,818 0.15% p.a. Accumulating Luxembourg Unfunded swap
Lyxor S&P 500 UCITS ETF C-EURLU1135865084 942 0.15% p.a. Accumulating Luxembourg Unfunded swap
Lyxor MSCI USA UCITS ETF D-EURFR0010296061 719 0.25% p.a. Distributing France Unfunded swap
iShares MSCI USA UCITS ETF (Acc)IE00B52SFT06 465 0.33% p.a. Accumulating Ireland Full replication
UBS ETF (LU) MSCI USA UCITS ETF (USD) A-disLU0136234654 459 0.14% p.a. Distributing Luxembourg Full replication
iShares Dow Jones Industrial Average UCITS ETF (Acc)IE00B53L4350 376 0.33% p.a. Accumulating Ireland Full replication
UBS ETF (IE) S&P 500 UCITS ETF (USD) A-disIE00B7K93397 292 0.12% p.a. Distributing Ireland Full replication
Amundi ETF MSCI USA UCITS ETF - USDLU1681042948 238 0.28% p.a. Accumulating Luxembourg Unfunded swap
Lyxor Dow Jones Industrial Average UCITS ETF D-EURFR0007056841 213 0.50% p.a. Distributing France Unfunded swap
UBS ETF (IE) MSCI USA UCITS ETF (USD) A-disIE00B77D4428 186 0.14% p.a. Distributing Ireland Full replication
Invesco MSCI USA UCITS ETFIE00B60SX170 62 0.05% p.a. Accumulating Ireland Unfunded swap
HSBC MSCI USA UCITS ETF USDIE00B5WFQ436 33 0.30% p.a. Distributing Ireland Full replication
Vanguard S&P 500 UCITS ETF (USD) AccumulatingIE00BFMXXD54 1 0.07% p.a. Accumulating Ireland Full replication
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
MSCI USA 5.08% 7.44% 19.52% 13.80% 55.91%
S&P 500® 5.07% 7.47% 19.29% 14.03% 55.91%
Dow Jones Industrial Average 5.23% 6.25% 16.27% 15.51% 65.25%
Index   2019
in %
2018
in %
2017
in %
2016
in %
2015
in %
Dow Jones Industrial Average 15.97% 1.24% 15.91% 39.34% 4.56%
S&P 500® 19.32% 0.62% 10.57% 34.38% 6.11%
MSCI USA 19.52% -0.51% 11.74% 33.93% 6.07%

Source: justETF.com; As of 30/06/19; Calculations in GBP 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 13 alternative USA indices, which are tracked by 22 ETFs as an example. The total expense ratio (TER) of ETFs on alternative USA indices is between 0.14% p.a. and 0.46% 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 High Dividend Yield United States
Dividend
1 ETF 123
(30/05/14)
The MSCI USA High Dividend Yield index tracks high dividend paying US stocks.
Index factsheet
MSCI USA Small Cap United States
Small Cap
1 ETF 1,818
(31/03/19)
The MSCI USA Small Cap (total return) index tracks US small cap stocks.
Index factsheet
MSCI USA Value United States
Value
1 ETF 384
(31/03/19)
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 112
(31/03/19)
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
2 ETFs 600
The S&P SmallCap 600 index tracks 600 US small cap stocks.
Index factsheet
ETF
ISIN
  Fund size
in m GBP
TER
in %
Use of profits Fund domicile Replication method
iShares Nasdaq 100 UCITS ETF (Acc)IE00B53SZB19 2,766 0.33% p.a. Accumulating Ireland Full replication
SPDR S&P US Dividend Aristocrats UCITS ETFIE00B6YX5D40 2,413 0.35% p.a. Distributing Ireland Full replication
Invesco NASDAQ-100 UCITS ETFIE0032077012 1,671 0.30% p.a. Distributing Ireland Full replication
iShares Edge S&P 500 Minimum Volatility UCITS ETF (Acc)IE00B6SPMN59 1,603 0.20% p.a. Accumulating Ireland Optimized sampling
SPDR S&P 400 US Mid Cap UCITS ETFIE00B4YBJ215 722 0.30% p.a. Accumulating Ireland Full replication
iShares S&P SmallCap 600 UCITS ETFIE00B2QWCY14 689 0.40% p.a. Distributing Ireland Optimized sampling
Xtrackers S&P 500 Equal Weight UCITS ETF 1CIE00BLNMYC90 465 0.25% p.a. Accumulating Ireland Full replication
Xtrackers Russell 2000 UCITS ETF 1CIE00BJZ2DD79 437 0.30% p.a. Accumulating Ireland Full replication
UBS ETF (IE) MSCI USA Value UCITS ETF (USD) A-disIE00B78JSG98 409 0.20% p.a. Distributing Ireland Full replication
SPDR Russell 2000 US Small Cap UCITS ETFIE00BJ38QD84 408 0.30% p.a. Accumulating Ireland Optimized sampling
iShares MSCI USA Small Cap UCITS ETF (Acc)IE00B3VWM098 393 0.43% p.a. Accumulating Ireland Optimized sampling
iShares MSCI USA Dividend IQ UCITS ETFIE00BKM4H312 334 0.35% p.a. Distributing Ireland Full replication
Invesco FTSE RAFI US 1000 UCITS ETFIE00B23D8S39 263 0.39% p.a. Distributing Ireland Full replication
Invesco Russell 2000 UCITS ETFIE00B60SX402 143 0.45% p.a. Accumulating Ireland Unfunded swap
Lyxor Russell 1000 Growth UCITS ETF C-USDFR0011119171 84 0.19% p.a. Accumulating France Unfunded swap
Amundi ETF NASDAQ 100 UCITS ETF - USDLU1681038326 45 0.23% p.a. Accumulating Luxembourg Unfunded swap
L&G Russell 2000 US Small Cap UCITS ETFIE00B3CNHJ55 43 0.46% p.a. Accumulating Ireland Unfunded swap
iShares Edge S&P 500 Minimum Volatility UCITS ETF USD (Dist)IE00BD93YH54 26 0.20% p.a. Distributing Ireland Optimized sampling
Amundi ETF Russell 2000 UCITS ETF - USDLU1681038839 18 0.35% p.a. Accumulating Luxembourg Unfunded swap
Lyxor Russell 1000 Value UCITS ETF C-USDFR0011119205 10 0.19% p.a. Accumulating France Unfunded swap
Invesco S&P SmallCap 600 UCITS ETF AIE00BH3YZ803 9 0.14% p.a. Accumulating Ireland Unfunded swap
Lyxor Russell 2000 UCITS ETF C-USDFR0011119254 4 0.19% p.a. Accumulating France Unfunded swap
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
S&P SmallCap 600 5.31% 4.87% 13.93% -2.01% 46.20%
Russell 2000® 5.02% 5.15% 17.58% -0.30% 47.34%
MSCI USA Small Cap 4.90% 5.28% 19.24% 3.43% 48.56%
S&P MidCap 400 5.99% 6.12% 18.83% 4.50% 41.82%
FTSE RAFI US 1000 5.37% 6.54% 16.64% 9.25% 43.28%
S&P 500® Equal Weight 5.72% 6.80% 19.76% 11.44% 47.71%
Russell 1000® Value 5.31% 6.95% 16.82% 11.86% 39.99%
MSCI USA Value 4.96% 6.16% 15.48% 12.43% 40.65%
Nasdaq 100® 5.36% 7.38% 22.39% 13.63% 87.31%
MSCI USA High Dividend Yield 4.58% 4.66% 12.96% 14.22% 42.38%
Russell 1000® Growth 4.85% 7.76% 22.26% 15.01% 73.19%
S&P High Yield Dividend Aristocrats 4.41% 5.26% 14.80% 15.35% 39.92%
S&P 500 Minimum Volatility 4.79% 8.50% 20.32% 16.61% 39.89%
Index   2019
in %
2018
in %
2017
in %
2016
in %
2015
in %
MSCI USA High Dividend Yield 13.01% 2.34% 8.02% 38.84% 4.98%
S&P SmallCap 600 14.27% -3.85% 2.59% 51.73% 2.38%
S&P High Yield Dividend Aristocrats 14.92% 2.22% 5.23% 43.97% 3.82%
MSCI USA Value 15.56% -2.59% 4.46% 39.90% 2.40%
FTSE RAFI US 1000 16.73% -3.85% 5.31% 40.51% 1.57%
Russell 1000® Value 16.91% -3.51% 3.20% 40.74% 0.52%
Russell 2000® 17.58% -7.71% 5.29% 45.10% -
S&P MidCap 400 18.67% -6.66% 5.31% 44.53% 2.13%
MSCI USA Small Cap 19.21% -5.47% 6.10% 43.53% 0.92%
S&P 500® Equal Weight 19.76% -4.02% 8.85% 37.55% 2.17%
S&P 500 Minimum Volatility 20.55% -0.08% 6.34% 36.57% 9.66%
Russell 1000® Growth 22.16% 3.74% 18.60% 28.77% 10.76%
Nasdaq 100® 22.58% 5.14% 20.54% 28.57% 14.74%

Source: justETF.com; As of 30/06/19; 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 94.75% (as of 31/03/2019). 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: 96.15%
(31/03/2019)
1 ETF 675
(31/03/19)
The FTSE North America index tracks stocks in USA and Canada.
Index factsheet
MSCI North America North America
USA: 94.75%
(31/03/2019)
2 ETFs 715
(31/03/19)
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 1,739 0.40% p.a. Distributing Ireland Optimized sampling
Amundi ETF MSCI North America UCITS ETF DRLU1437016543 924 0.15% p.a. Accumulating Luxembourg Full replication
Vanguard FTSE North America UCITS ETFIE00BKX55R35 249 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 5.05% 7.41% 19.45% 13.13% 53.27%
FTSE North America 5.02% 7.47% 19.50% 13.49% 54.74%
Index   2019
in %
2018
in %
2017
in %
2016
in %
2015
in %
MSCI North America 19.48% -0.56% 10.03% 34.38% 4.04%
FTSE North America 19.55% -0.21% 10.50% 34.84% 4.20%

Source: justETF.com; As of 30/06/19; 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 55% to 80%. 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: 75.90%
(31/03/2019)
1 ETF 50
The Dow Jones Global Titans 50 (total return) index tracks 50 multinational companies traded on major exchanges worldwide.
Index factsheet
FTSE Developed World
USA: 60.16%
(31/03/2019)
1 ETF 2,175
(31/03/19)
The FTSE Developed index tracks the largest stocks in developed markets across the world.
Index factsheet
MSCI All Country World (ACWI) World
USA: 55.05%
(31/03/2019)
4 ETFs 2,771
(31/03/19)
The MSCI All Country World Index (ACWI) tracks stocks from developed and emerging countries worldwide. It covers securities across large and mid cap size segments and consists of 49 country indices, of which 23 are developed and 26 are emerging markets.
Index factsheet
MSCI All Country World Investable Market (ACWI IMI) World
USA: 54.67%
(31/03/2019)
1 ETF 8,675
(31/03/19)
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 47 country indices, of which approximately half are developed and half are emerging markets.
Index factsheet
MSCI World World
USA: 62.36%
(31/03/2019)
13 ETFs 1,635
(31/03/19)
The MSCI World index tracks stocks from 23 developed countries world wide. As of January 2019 the index consisted of 1.632 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 14,764 0.20% p.a. Accumulating Ireland Optimized sampling
iShares MSCI World UCITS ETF (Dist)IE00B0M62Q58 4,398 0.50% p.a. Distributing Ireland Optimized sampling
Xtrackers MSCI World Index UCITS ETF 1CIE00BJ0KDQ92 3,407 0.19% p.a. Accumulating Ireland Optimized sampling
Xtrackers MSCI World Index Swap UCITS ETF 1CLU0274208692 2,424 0.45% p.a. Accumulating Luxembourg Unfunded swap
Lyxor MSCI World UCITS ETF D-EURFR0010315770 2,044 0.30% p.a. Distributing France Unfunded swap
SPDR MSCI ACWI UCITS ETFIE00B44Z5B48 1,311 0.40% p.a. Accumulating Ireland Optimized sampling
UBS ETF (LU) MSCI World UCITS ETF (USD) A-disLU0340285161 930 0.30% p.a. Distributing Luxembourg Full replication
HSBC MSCI World UCITS ETF USDIE00B4X9L533 844 0.15% p.a. Distributing Ireland Optimized sampling
Invesco MSCI World UCITS ETFIE00B60SX394 699 0.19% p.a. Accumulating Ireland Unfunded swap
Xtrackers MSCI World Index UCITS ETF 1DIE00BK1PV551 621 0.19% p.a. Distributing Ireland Optimized sampling
iShares MSCI ACWI UCITS ETF (Acc)IE00B6R52259 568 0.60% p.a. Accumulating Ireland Optimized sampling
Amundi ETF MSCI World UCITS ETF DRLU1437016972 343 0.18% p.a. Accumulating Luxembourg Full replication
Vanguard FTSE Developed World UCITS ETFIE00BKX55T58 292 0.18% p.a. Distributing Ireland Optimized sampling
SPDR MSCI World UCITS ETFIE00BFY0GT14 257 0.12% p.a. Accumulating Ireland Optimized sampling
Xtrackers MSCI AC World Index UCITS ETF 1CIE00BGHQ0G80 225 0.40% p.a. Accumulating Ireland Optimized sampling
Lyxor Core MSCI World (DR) UCITS ETFLU1781541179 203 0.12% p.a. Accumulating Luxembourg Optimized sampling
SPDR MSCI ACWI IMI UCITS ETFIE00B3YLTY66 115 0.40% p.a. Accumulating Ireland Optimized sampling
Lyxor DJ Global Titans 50 UCITS ETF D-EURFR0007075494 60 0.40% p.a. Distributing France Unfunded swap
Amundi ETF MSCI World UCITS ETF - USDLU1681043672 21 0.38% p.a. Accumulating Luxembourg Unfunded swap
Lyxor MSCI All Country World UCITS ETF Acc (USD)LU1829220133 15 0.45% 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) 4.95% 6.40% 16.17% 7.61% 44.51%
MSCI All Country World (ACWI) 5.10% 6.85% 16.93% 9.46% 46.71%
FTSE Developed 5.03% 7.14% 17.38% 9.72% 47.86%
MSCI World 5.02% 7.34% 17.86% 10.36% 48.13%
Dow Jones Global Titans 50 4.83% 7.31% 18.83% 15.50% 55.04%
Index   2019
in %
2018
in %
2017
in %
2016
in %
2015
in %
MSCI All Country World Investable Market (ACWI IMI) 16.39% -5.28% 12.23% 31.86% 3.43%
MSCI All Country World (ACWI) 17.16% -4.50% 12.79% 31.29% 2.47%
FTSE Developed 17.60% -4.01% 12.28% 29.78% 4.20%
MSCI World 18.07% -3.52% 11.50% 29.83% 4.26%
Dow Jones Global Titans 50 19.16% 0.91% 10.17% 32.34% 4.96%

Source: justETF.com; As of 30/06/19; Calculations in GBP based on the largest ETF of the respective index.