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Futu Research | ETF Investment Research

Views 42042024.11.12

[Indices ETF] US stocks hit a new high, which US equity ETFs can be invested in

US Stock Indices

In recent years,US StocksThe market continues to be hot,S&P 500 Index,Dow Jones Industrial AveragewithNASDAQ COMPOSITE INDEXIt is setting a new all-time high. 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.

Here are the recommendations for investing in US equity indices ETFs

U.S. Stock Dividend Indices ETFs - Off-The-End Income-Income-Incentive Investors

Long-term income investors tend to look for those with long-term dividend capacity and lower volatilityIndices ETFs, sometimes using a covered call strategy to increase revenue. Here are some examples:

DVY Dividend Index ETF

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.

Dividend Index ETF-iShares Dow Jones (DVY.US)
Dividend Index ETF-iShares Dow Jones (DVY.US)

JEPI JPMorgan Equity Premium Income ETF

Features: JEPI (JPMorgan Equity Premium Income ETF) is an innovative strategic ETF that provides investors with an income stream of both stock dividends and option premiums by holding S&P 500 index constituents and using 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, it may limit the ETF's overall return as the bullish options sold limit potential capital gains.

JPMorgan Equity Premium Income ETF (JEPI.US)
JPMorgan Equity Premium Income ETF (JEPI.US)

U.S. Equity Broad-based Index ETF - Robust Investors

Robust investors will prefer low-risk, market-representative US equity broad-based index ETFs, such as:

SPDR S&P 500 Index ETF

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.

SPDR S&P 500 Index ETF
SPDR S&P 500 Index ETF

VTI Global Story Index ETF

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.

VTI Global Story Index ETF
VTI Global Story Index ETF

IEFA ASUS Core MSCI EAFE ETF

FEATURES: IEFA TRACKS THE MSCI EAFE INDEX, WHICH FOCUSES ON STOCKS IN EMERGING INTERNATIONAL MARKETS, HELPING INVESTORS SPREAD RISK GLOBALLY FOR SOLID EARNINGS GROWTH.

IEFA ASUS Core MSCI EAFE ETF
IEFA ASUS Core MSCI EAFE ETF

US Equity Strategic Indices ETF - Aggressive Investors

Aggressive investors tend to be keen to invest in US equity strategic ETFs with higher risk and potential returns, such as:

QLD Proshare Doubles to Do Donastak Index ETF

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.

ProShares Doubles to Do Donastak 100 Index ETF (QLD.US)

TECL TRIPLES MULTI-TECH ETF

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.

3X Multi-Tech ETF-Direxion (TECL.US)
3X Multi-Tech ETF-Direxion (TECL.US)

RSP Average Weighted Index ETF

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.

Average Weighted Index ETF-Rydex S&P (RSP.US)

How to Trade US Stock Index ETFs with Futu?

Before investing in a US equity index ETF, 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)

>> Futu Securities offers 5x24 hours trading of US shares and free LV2 emotions, help you to open your wallet and enjoy new rewards instantly

Learn more about what an ETF is, an ETF investment guide

One-stop trading with Futubull

Enjoy welcome rewards and lifetime 0 commission on HK stocks

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