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'll find 4 indices which are tracked by ETFs. Besides these indices 16 alternative indices on small and mid caps as well as equity strategies can be considered. Among these strategies you find dividend focused, growth and value approaches.

Alternatively, you may consider indices on North America or the World.

0.03% 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: +0.83%
Created with Highcharts 8.2.08 Dec10 Dec12 Dec14 Dec16 Dec18 Dec20 Dec22 Dec24 Dec26 Dec28 Dec30 Dec1 Jan3 Jan5 Jan 7 Jan-4.00%-3.00%-2.00%-1.00%0.00%1.00%2.00%justETF.com
1 year: +31.00%
Created with Highcharts 8.2.0Feb '24Mar '24Apr '24May '24Jun '24Jul '24Aug '24Sep '24Oct '24Nov '24Dec '24Jan …Jan '250.00%5.00%10.00%15.00%20.00%25.00%30.00%35.00%justETF.com
3 years: +43.85%
Created with Highcharts 8.2.0Jan '22Apr '22Jul '22Oct '22Jan '23Apr '23Jul '23Oct '23Jan '24Apr '24Jul '24Oct '24J…Jan '25-20.00%-10.00%0.00%10.00%20.00%30.00%40.00%50.00%justETF.com
5 years: +107.53%
Created with Highcharts 8.2.0Jan '20Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '23Jan '24Jul '24J…Jan '25-50.00%-25.00%0.00%25.00%50.00%75.00%100.00%125.00%justETF.com

Indices in comparison

The best indices for ETFs on USA

For an investment in the American stock market, there are 4 indices available which are tracked by 32 ETFs. On the Dow Jones Industrial Average index there are 2 ETFs. On the MSCI USA index there are 9 ETFs. On the Morningstar US Large-Mid Cap index there is 1 ETF. On the S&P 500® index there are 20 ETFs. The total expense ratio (TER) of ETFs on these indices is between 0.03% 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 index tracks the 30 largest industrial companies in the US.
Index factsheet

MSCI USA

United States 9 ETFs 590
(29/11/2024)
The MSCI USA index tracks the leading stocks on the US market.
Index factsheet

Morningstar US Large-Mid Cap

United States 1 ETF 629
(31/05/2024)
The Morningstar US Large Mid Cap index tracks large and mid cap stocks of the US equity market.
Index factsheet

S&P 500®

United States 20 ETFs 500
The S&P 500® index tracks the 500 largest US stocks.
Index factsheet
 

Source: justETF.com; As of 31/12/2024; Calculations in GBP based on the largest ETF of the respective index.

 

The cheapest USA ETFs
by total expense ratio (TER)

Show all
Alternative investment opportunities

USA indices on small and mid caps or equity strategies

Alternatively, you may consider indices on small and mid caps or equity strategies. Below, we selected 16 alternative USA indices, which are tracked by 36 ETFs as an example. The total expense ratio (TER) of ETFs on alternative USA indices is between 0.07% p.a. and 0.43% 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 1000 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
Foxberry Sustainability Consensus US United States
Social/Environmental
1 ETF 431
(28/06/2024)
The Foxberry Sustainability Consensus US index tracks stocks from the US. Securities are selected according to sustainability criteria and EU directives on climate protection.
Index factsheet
MSCI USA ESG Screened United States
Social/Environmental
2 ETFs 541
(28/06/2024)
The MSCI USA ESG Screened index tracks US companies. The index excludes companies that are involved in businesses related to thermal coal, controversial weapons, tobacco and other controversial industries.
Index factsheet
MSCI USA Enhanced Value United States
Value
2 ETFs 150
(28/06/2024)
The MSCI USA Enhanced 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
MSCI USA High Dividend Yield ESG Reduced Carbon Target Select United States
Dividend
1 ETF 93
(28/06/2024)
The MSCI USA High Dividend Yield ESG Reduced Carbon Target Select index tracks high dividend paying US stocks. The stocks included are filtered according to ESG criteria (environmental, social and corporate governance). The parent index is the MSCI USA index.
Index factsheet
MSCI USA Momentum United States
Momentum
2 ETFs 125
(28/06/2024)
The MSCI USA Momentum index tracks stocks with a high price momentum from the United States. The index consists of titles that have experienced price increases over the past 6 and past 12 months with the assumption that increases will continue in the future.
Index factsheet
MSCI USA SRI Select Reduced Fossil Fuels United States
Social/Environmental
1 ETF 176
(28/06/2024)
The MSCI USA SRI Select Reduced Fossil Fuels index tracks US stocks considering only companies with very high Environmental, Social and Governance (ESG) ratings relative to their sector peers, to ensure the inclusion of the best of class companies from an ESG perspective and avoiding companies incompatible with values screen or having exposure to fossil fuels through extraction and production activities, power generation activities or reserves ownership. The weight of each company is capped to 5%.
Index factsheet
MSCI USA Small Cap ESG Enhanced Focus CTB United States
Small Cap
1 ETF 1,636
(28/06/2024)
The MSCI USA Small Cap ESG Enhanced Focus CTB index tracks US small cap stocks. Securities are selected and weighted according to sustainability criteria and EU directives on climate protection. The parent index is the MSCI USA Small Cap.
Index factsheet
MSCI USA Value United States
Value
1 ETF 463
(29/11/2024)
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
8 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 2,000
The Russell 2000® index tracks 2000 companies from the US small cap stocks.
Index factsheet
S&P 500 Minimum Volatility United States
Low Volatility/Risk Weighted
2 ETFs 79
(28/06/2024)
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 index tracks large cap US stocks.
Index factsheet
S&P 500® Equal Weight United States
Equal Weighted
5 ETFs 500
The S&P 500® Equal Weight (EWI) index tracks 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 133
(28/06/2024)
The S&P High Yield Dividend Aristocrats index tracks 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 small cap US stocks.
Index factsheet
 

Source: justETF.com; As of 31/12/2024; 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 total expense ratio (TER) of ETFs on North America 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: 95.69%
(30/11/2022)
2 ETFs 627
(28/06/2024)
The FTSE North America index tracks stocks from the USA and Canada.
Index factsheet
MSCI North America North America
USA: 95.21%
(30/11/2022)
1 ETF 674
(29/11/2024)
The MSCI North America index tracks stocks from developed North American countries (Canada and United States).
Index factsheet
 

Source: justETF.com; As of 31/12/2024; Calculations in GBP based on the largest ETF of the respective index.

 

Global indices with a large share of USA

As further alternative you may invest in global stock markets. In total, you can invest in 4 global indices, which are tracked by 23 ETFs. The total expense ratio (TER) of ETFs on global indices is between 0.09% p.a. and 0.50% p.a..

 
Index Investment focus Number of ETFs Number of constituents Short description
FTSE Developed World
USA: 66.94%
(30/11/2022)
3 ETFs 2,072
(28/06/2024)
The FTSE Developed index tracks the largest stocks in developed markets across the world.
Index factsheet
MSCI All Country World (ACWI) World
USA: 61.65%
(30/11/2022)
3 ETFs 2,650
(29/11/2024)
The MSCI All Country World Index (ACWI) tracks large- and mid-cap stocks from 23 developed and 24 emerging markets worldwide.
Index factsheet
MSCI All Country World Investable Market (ACWI IMI) World
USA: 60.72%
(30/11/2022)
1 ETF 8,647
(29/11/2024)
The MSCI All Country World Investable Market Index (ACWI IMI) tracks stocks from 23 developed and 24 emerging markets worldwide. It covers securities across large, mid and small cap size segments.
Index factsheet
MSCI World World
USA: 69.17%
(30/11/2022)
16 ETFs 1,397
(29/11/2024)
The MSCI World index tracks stocks from 23 developed countries worldwide.
Index factsheet
 

Source: justETF.com; As of 31/12/2024; Calculations in GBP based on the largest ETF of the respective index.