Futu Research | ETF Investment Research
[Indices ETF] US stocks hit a new high, which indices can be invested in
In recent years, the U.S. stock market has continued to be hot, with the S&P 500, Dow Jones Industrial Average and the Nasdaq Composite Index hitting all-time highs. For the broader investor, it is important not only to keep an eye on the new highs of these indices, but also to understand the differences between the indices and how to develop effective investment strategies based on the characteristics of these indices.
US Stock Indices ETF Investment Recommendations
1. Indices ETF - Income-oriented investors
Long-term income investors tend to look for index ETFs with long-term dividend capacity and lower volatility, and sometimes leverage covered call strategies to increase returns. Here are some examples:
（1）$Ishares Select Dividend ETF(DVY.US)$
Features: DVY tracks the Dow Jones U.S. Select Dividend Index, designed for investors seeking stable dividends, and includes a range of large and medium-sized company stocks with strong dividend histories and prospects.
（2）$JPMorgan Equity Premium Income ETF(JEPI.US)$
Features: JEPI is an innovative strategic ETF that aims to provide investors with an income stream of both stock dividends and option premiums by holding S&P 500 index constituents and adopting a covered call strategy. Designed to increase total returns and cash flow while staying connected to the market, this ETF is especially suitable for long-term income-driven investors who seek a higher return than traditional dividend ETFs but also want to maintain a certain level of market participation. However, it should be noted that while the covered call strategy helps to boost earnings, when the stock market rises substantially, this may limit the ETF's overall return as the bullish options sold limit potential capital gains.
2. BROAD-BASED INDEX ETF - STABLE INVESTORS
Robust investors will prefer low-risk, market-representative broad-based index ETFs, such as:
FEATURES: SPY CLOSELY TRACKS THE S&P 500 INDEX, WHICH PROVIDES DIVERSIFIED OPPORTUNITIES FOR INVESTING IN U.S. MID-TO-LARGE COMPANIES AND IS THE FOUNDATION OF MANY INVESTORS' CORE HOLDINGS PORTFOLIO.
（2）$Vanguard Total Stock Market ETF(VTI.US)$
FEATURES: VTI COVERS ALMOST ALL MARKET CAPITALIZATION RANGES OF THE U.S. EQUITY MARKET, PROVIDING INVESTORS WITH AN OPPORTUNITY TO PARTICIPATE FULLY IN U.S. STOCK MARKET PERFORMANCE, WITH ONLY LOWER MANAGEMENT FEES AND HIGH STABILITY.
（3）$Ishares Trust Core Msci Eafe Etf(IEFA.US)$
FEATURES: IEFA TRACKS THE MSCI EAFE INDEX, WHICH FOCUSES ON STOCKS IN EMERGING INTERNATIONAL MARKETS, HELPING INVESTORS SPREAD RISK GLOBALLY FOR SOLID EARNINGS GROWTH.
3. Strategic ETF - aggressive investors
Aggressive investors tend to be keen to invest in strategic ETFs with higher risk and potential returns, such as:
（1）$Proshares Ultra QQQ ETF(QLD.US)$
Features: QLD is a double leveraged product of the Nasdaq 100 index, designed to deliver higher returns over the short term than the benchmark index, suitable for investors who are confident in the direction of the market and willing to take on higher volatility risks.
（2）$Direxion Daily Technology Bull 3X Shares ETF(TECL.US)$
Features: TECL uses a 3x leverage strategy that closely tracks the performance of technology blocks, which can generate significant excess returns when investors take a good look at the tech sector, but at the same time comes with greater downside risk.
（3）$Invesco Exchange Traded Fd Tr S&P 500 Equal Weight Etf(RSP.US)$
Features: While the RSP is not a leveraged ETF, it achieves a more positive provisioning strategy in terms of market-weighted indices by giving weightings such as all constituent stocks. When market volatility is evident, equity-weighted strategies may yield returns that exceed traditional broad-based indices, but may also show greater volatility over certain periods.
How to Trade Bitcoin ETF with Futu?
Before investing (buying and selling) stocks, you first need to open a securities (stocks) account. Just like depositing money in a bank, you need to open a bank account first.
Securities (Stock) Account Opening Process
Step 1: Head over to the Futubull network and sign up for a new account.(Register now)
Step 2: Open a securities account on the basis of the Futu account.(Open account now)
Step 3: Fill in your personal and financial details (includingBank Code and Account Number), and then deposit funds via EdDA Quick Deposit, Fast Transfer (FPS), Bank Transfer.(Invest immediately)
Step 4: Download the Futubull Customer Portal and log in.(Download now)
