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%.
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, 4 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 Russell 3000® index there is 1 ETF. On the S&P 500® index there are 10 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 | 617 (31/10/16) |
The MSCI USA (total return) index tracks around 600 leading stocks on the US market (end of day).
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 | 10 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 | 17,194 | 0.07% p.a. | Accumulating | Ireland | Full replication | |
| Vanguard S&P 500 UCITS ETFIE00B3XXRP09 | 14,708 | 0.07% p.a. | Distributing | Ireland | Full replication | |
| iShares S&P 500 UCITS ETF (Dist)IE0031442068 | 6,015 | 0.07% p.a. | Distributing | Ireland | Optimized sampling | |
| db x-trackers MSCI USA Index UCITS ETF (DR) 1CIE00BJ0KDR00 | 2,537 | 0.07% p.a. | Accumulating | Ireland | Full replication | |
| Source S&P 500 UCITS ETF AIE00B3YCGJ38 | 2,220 | 0.05% p.a. | Accumulating | Ireland | Unfunded swap | |
| HSBC S&P 500 UCITS ETF USDIE00B5KQNG97 | 2,011 | 0.09% p.a. | Distributing | Ireland | Full replication | |
| db x-trackers MSCI USA Index UCITS ETF 1CLU0274210672 | 1,932 | 0.30% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| db x-trackers S&P 500 UCITS ETF 1CLU0490618542 | 1,685 | 0.15% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| SPDR S&P 500 UCITS ETFIE00B6YX5C33 | 1,437 | 0.09% p.a. | Distributing | Ireland | Full replication | |
| Lyxor S&P 500 UCITS ETF D-USDLU0496786657 | 995 | 0.15% p.a. | Distributing | Luxembourg | Unfunded swap | |
| UBS ETF (LU) MSCI USA UCITS ETF (USD) A-disLU0136234654 | 465 | 0.14% p.a. | Distributing | Luxembourg | Full replication | |
| Amundi ETF S&P 500 UCITS ETF USDFR0010912576 | 362 | 0.15% p.a. | Accumulating | France | Unfunded swap | |
| iShares MSCI USA UCITS ETF (Acc)IE00B52SFT06 | 360 | 0.33% p.a. | Accumulating | Ireland | Full replication | |
| Amundi ETF MSCI USA UCITS ETF USDFR0010871152 | 239 | 0.28% p.a. | Accumulating | France | Unfunded swap | |
| iShares Dow Jones Industrial Average UCITS ETF (Acc)IE00B53L4350 | 240 | 0.33% p.a. | Accumulating | Ireland | Full replication | |
| UBS ETF (IE) MSCI USA UCITS ETF (USD) A-disIE00B77D4428 | 214 | 0.14% p.a. | Distributing | Ireland | Full replication | |
| Lyxor Dow Jones Industrial Average UCITS ETF D-EURFR0007056841 | 172 | 0.50% p.a. | Distributing | France | Unfunded swap | |
| UBS ETF (IE) S&P 500 UCITS ETF (USD) A-disIE00B7K93397 | 172 | 0.12% p.a. | Distributing | Ireland | Full replication | |
| HSBC MSCI USA UCITS ETF USDIE00B5WFQ436 | 137 | 0.30% p.a. | Distributing | Ireland | Full replication | |
| Lyxor MSCI USA UCITS ETF D-USDFR0010372193 | 82 | 0.25% p.a. | Distributing | France | Unfunded swap | |
| Source MSCI USA UCITS ETF AIE00B60SX170 | 76 | 0.30% p.a. | Accumulating | Ireland | Unfunded swap | |
| SPDR Russell 3000 US Total Market UCITS ETFIE00BKY7WX37 | 6 | 0.25% p.a. | Accumulating | Ireland | Optimized sampling |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| Russell 3000® | 1.73% | -1.35% | 6.59% | 33.30% | - | |
| S&P 500® | 2.12% | -0.89% | 7.43% | 33.43% | 72.08% | |
| MSCI USA | 2.07% | -0.85% | 7.51% | 33.56% | 71.31% | |
| Dow Jones Industrial Average | 1.37% | -1.95% | 7.60% | 37.13% | 72.78% |
| Index | 2017 in % |
2016 in % |
2015 in % |
2014 in % |
2013 in % |
|
|---|---|---|---|---|---|---|
| Dow Jones Industrial Average | 2.70% | 39.34% | 4.56% | 15.99% | 25.79% | |
| Russell 3000® | 3.28% | 34.90% | 5.29% | - | - | |
| S&P 500® | 4.00% | 34.38% | 6.11% | 20.17% | 28.75% | |
| MSCI USA | 4.19% | 33.93% | 6.07% | - | - |
Source: justETF.com; As of 31/05/17; 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) | 37.13% |
| 2 | Lyxor Dow Jones Industrial Average UCITS ETF D-EUR | 36.23% |
| 3 | db x-trackers S&P 500 UCITS ETF 1C | 33.79% |
The cheapest USA ETFs
by total expense ratio (TER)
| 1 | Source S&P 500 UCITS ETF A | 0.05% p.a. |
| 2 | db x-trackers MSCI USA Index UCITS ETF (DR) 1C | 0.07% p.a. |
| 3 | iShares Core S&P 500 UCITS ETF (Acc) | 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 0.19% 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 | 1,822 (31/03/17) |
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 |
4 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 1000® Growth | United States
Growth |
1 ETF | 567 (30/09/12) |
The Russell 1000® Growth index tracks the large-cap growth segment of US equities.
Index factsheet |
| Russell 1000® Value | United States
Value |
1 ETF | 690 (30/09/12) |
The Russell 1000® Value index tracks the large-cap value segment of US equities.
Index factsheet |
| Russell 2000® | United States
Small Cap |
6 ETFs | 1,946 (31/03/17) |
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 | 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 | 601 (31/03/17) |
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 | 2,180 | 0.35% p.a. | Distributing | Ireland | Full replication | |
| PowerShares EQQQ Nasdaq 100 UCITS ETFIE0032077012 | 1,309 | 0.30% p.a. | Distributing | Ireland | Full replication | |
| iShares Nasdaq 100 UCITS ETF (Acc)IE00B53SZB19 | 976 | 0.33% p.a. | Accumulating | Ireland | Full replication | |
| iShares Edge S&P 500 Minimum Volatility UCITS ETFIE00B6SPMN59 | 895 | 0.20% p.a. | Accumulating | Ireland | Optimized sampling | |
| iShares S&P SmallCap 600 UCITS ETFIE00B2QWCY14 | 696 | 0.40% p.a. | Distributing | Ireland | Optimized sampling | |
| SPDR S&P 400 US Mid Cap UCITS ETFIE00B4YBJ215 | 563 | 0.30% p.a. | Accumulating | Ireland | Full replication | |
| UBS ETF (IE) MSCI USA Value UCITS ETF (USD) A-disIE00B78JSG98 | 474 | 0.20% p.a. | Distributing | Ireland | Full replication | |
| iShares MSCI USA Small Cap UCITS ETF (Acc)IE00B3VWM098 | 406 | 0.43% p.a. | Accumulating | Ireland | Optimized sampling | |
| SPDR Russell 2000 US Small Cap UCITS ETFIE00BJ38QD84 | 386 | 0.30% p.a. | Accumulating | Ireland | Optimized sampling | |
| db x-trackers S&P 500 Equal Weight UCITS ETF (DR) 1CIE00BLNMYC90 | 362 | 0.25% p.a. | Accumulating | Ireland | Full replication | |
| db x-trackers Russell 2000 UCITS ETF (DR) 1CIE00BJZ2DD79 | 352 | 0.30% p.a. | Accumulating | Ireland | Full replication | |
| Source Russell 2000 UCITS ETF AIE00B60SX402 | 234 | 0.45% p.a. | Accumulating | Ireland | Unfunded swap | |
| PowerShares FTSE RAFI US 1000 UCITS ETFIE00B23D8S39 | 231 | 0.39% p.a. | Distributing | Ireland | Full replication | |
| Lyxor Russell 1000 Growth UCITS ETF C-USDFR0011119171 | 101 | 0.19% p.a. | Accumulating | France | Unfunded swap | |
| Amundi ETF Nasdaq 100 UCITS ETF USDFR0010912568 | 44 | 0.23% p.a. | Accumulating | France | Unfunded swap | |
| ETFS Russell 2000 US Small Cap GO UCITS ETFIE00B3CNHJ55 | 34 | 0.45% p.a. | Accumulating | Ireland | Unfunded swap | |
| Amundi ETF Russell 2000 UCITS ETF USDFR0011636208 | 26 | 0.35% p.a. | Accumulating | France | Unfunded swap | |
| Lyxor Nasdaq 100 UCITS ETF D-USDFR0010446930 | 11 | 0.30% p.a. | Distributing | France | Unfunded swap | |
| Lyxor Russell 1000 Value UCITS ETF C-USDFR0011119205 | 9 | 0.19% p.a. | Accumulating | France | Unfunded swap | |
| Lyxor Russell 2000 UCITS ETF C-USDFR0011119254 | 5 | 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 High Yield Dividend Aristocrats | 0.78% | -2.76% | 3.20% | 27.05% | 71.82% | |
| S&P 500 Minimum Volatility | 2.35% | -1.65% | 4.99% | 28.77% | 81.18% | |
| Russell 1000® Value | 0.59% | -4.63% | 2.34% | 30.22% | 60.47% | |
| MSCI USA Value | 0.86% | -4.02% | 3.11% | 30.33% | 59.50% | |
| FTSE RAFI US 1000 | 0.68% | -4.09% | 2.37% | 30.97% | 59.92% | |
| S&P 500® Equal Weight | 1.30% | -2.13% | 4.61% | 31.31% | - | |
| S&P MidCap 400 | 0.21% | -3.42% | 3.28% | 32.76% | 67.68% | |
| MSCI USA Small Cap | -0.63% | -3.84% | 2.20% | 33.73% | 62.51% | |
| S&P SmallCap 600 | -1.50% | -4.74% | -0.10% | 35.63% | 68.97% | |
| Russell 2000® | -1.38% | -4.25% | 1.10% | 36.45% | - | |
| Russell 1000® Growth | 3.34% | 2.66% | 12.37% | 37.01% | 81.60% | |
| Nasdaq 100® | 4.58% | 5.22% | 17.24% | 46.76% | 104.94% |
| Index | 2017 in % |
2016 in % |
2015 in % |
2014 in % |
2013 in % |
|
|---|---|---|---|---|---|---|
| S&P SmallCap 600 | -4.54% | 51.23% | 2.40% | 11.55% | 37.31% | |
| Russell 2000® | -2.89% | 45.72% | 1.10% | - | - | |
| Russell 1000® Value | -1.43% | 40.74% | 0.52% | - | - | |
| MSCI USA Small Cap | -1.23% | 43.53% | 0.92% | 13.05% | 33.66% | |
| FTSE RAFI US 1000 | -1.02% | 40.16% | 1.55% | 19.71% | 31.62% | |
| MSCI USA Value | -0.99% | 39.12% | 2.33% | 19.11% | 28.23% | |
| S&P MidCap 400 | -0.18% | 44.53% | 2.13% | 15.90% | 29.75% | |
| S&P High Yield Dividend Aristocrats | 0.02% | 43.59% | 3.74% | 20.03% | 26.50% | |
| S&P 500 Minimum Volatility | 1.65% | 38.42% | 9.66% | 21.65% | 24.50% | |
| S&P 500® Equal Weight | 2.13% | 37.55% | 2.17% | - | - | |
| Russell 1000® Growth | 9.55% | 28.77% | 10.76% | - | - | |
| Nasdaq 100® | 14.46% | 28.52% | 14.71% | 26.66% | 33.21% |
Source: justETF.com; As of 31/05/17; 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 94.25% (as of 31/10/2016). 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: 94.75% (31/10/2016) |
1 ETF | The FTSE North America index tracks stocks in USA and Canada.
Index factsheet |
|
| 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 GBP |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares MSCI North America UCITS ETFIE00B14X4M10 | 1,638 | 0.40% p.a. | Distributing | Ireland | Optimized sampling | |
| Vanguard FTSE North America UCITS ETFIE00BKX55R35 | 47 | 0.10% p.a. | Distributing | Ireland | Full replication | |
| Lyxor MSCI North America UCITS ETF C-USDFR0012647428 | 1 | 0.20% p.a. | Accumulating | France | Unfunded swap |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| MSCI North America | 1.95% | -1.18% | 6.82% | 32.40% | 64.61% | |
| FTSE North America | 2.01% | -1.08% | 7.10% | 32.84% | - |
| Index | 2017 in % |
2016 in % |
2015 in % |
2014 in % |
2013 in % |
|
|---|---|---|---|---|---|---|
| MSCI North America | 3.57% | 34.09% | 4.01% | 18.58% | 26.38% | |
| FTSE North America | 3.76% | 34.52% | 4.17% | - | - |
Source: justETF.com; As of 31/05/17; 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 0.15% 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 | 2,477 (30/04/17) |
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: 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) |
10 ETFs | 1,654 (11/01/17) |
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 |
| ETF ISIN |
Fund size in m GBP |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares Core MSCI World UCITS ETFIE00B4L5Y983 | 8,097 | 0.20% p.a. | Accumulating | Ireland | Optimized sampling | |
| iShares MSCI World UCITS ETF (Dist)IE00B0M62Q58 | 4,261 | 0.50% p.a. | Distributing | Ireland | Optimized sampling | |
| db x-trackers MSCI World Index UCITS ETF 1CLU0274208692 | 2,433 | 0.45% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| db x-trackers MSCI World Index UCITS ETF (DR) 1CIE00BJ0KDQ92 | 1,543 | 0.19% p.a. | Accumulating | Ireland | Optimized sampling | |
| UBS ETF (LU) MSCI World UCITS ETF (USD) A-disLU0340285161 | 1,131 | 0.30% p.a. | Distributing | Luxembourg | Full replication | |
| SPDR MSCI ACWI UCITS ETFIE00B44Z5B48 | 877 | 0.40% p.a. | Accumulating | Ireland | Optimized sampling | |
| Source MSCI World UCITS ETF AIE00B60SX394 | 692 | 0.19% p.a. | Accumulating | Ireland | Unfunded swap | |
| iShares Core MSCI World UCITS ETFIE00BD45YS76 | 497 | 0.30% p.a. | Distributing | Ireland | Optimized sampling | |
| iShares MSCI ACWI UCITS ETFIE00B6R52259 | 363 | 0.60% p.a. | Accumulating | Ireland | Optimized sampling | |
| Lyxor MSCI World UCITS ETF D-USDFR0010372201 | 213 | 0.30% p.a. | Distributing | France | Unfunded swap | |
| HSBC MSCI World UCITS ETF USDIE00B4X9L533 | 200 | 0.15% p.a. | Distributing | Ireland | Optimized sampling | |
| db x-trackers MSCI AC World Index UCITS ETF (DR) 1CIE00BGHQ0G80 | 155 | 0.40% p.a. | Accumulating | Ireland | Optimized sampling | |
| SPDR MSCI ACWI IMI UCITS ETFIE00B3YLTY66 | 44 | 0.40% p.a. | Accumulating | Ireland | Optimized sampling | |
| Lyxor MSCI All Country World UCITS ETF C-USDFR0011093418 | 27 | 0.45% p.a. | Accumulating | France | Unfunded swap | |
| Amundi ETF MSCI World UCITS ETF USDFR0010871160 | 20 | 0.38% p.a. | Accumulating | France | Unfunded swap | |
| Lyxor DJ Global Titans 50 UCITS ETF USDFR0011523505 | 1 | 0.40% p.a. | Distributing | France | Unfunded swap |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| MSCI World | 2.90% | 1.34% | 9.62% | 32.80% | 54.67% | |
| MSCI All Country World (ACWI) | 2.97% | 1.40% | 9.87% | 34.05% | 53.53% | |
| MSCI All Country World Investable Market (ACWI IMI) | 2.70% | 1.15% | 9.56% | 34.35% | 55.99% | |
| Dow Jones Global Titans 50 | 2.93% | 0.72% | 9.78% | 34.37% | 53.93% |
| Index | 2017 in % |
2016 in % |
2015 in % |
2014 in % |
2013 in % |
|
|---|---|---|---|---|---|---|
| Dow Jones Global Titans 50 | 5.07% | 32.45% | 4.88% | 10.72% | - | |
| MSCI World | 5.65% | 29.83% | 4.26% | 11.52% | 23.78% | |
| MSCI All Country World Investable Market (ACWI IMI) | 5.91% | 31.86% | 3.43% | 10.82% | 20.91% | |
| MSCI All Country World (ACWI) | 6.16% | 31.29% | 2.47% | 10.09% | 19.47% |
Source: justETF.com; As of 31/05/17; Calculations in GBP based on the largest ETF of the respective index.