Futu Research | ETF Investment Research
[Index ETFs] U.S. stocks hit new highs—what U.S. index ETFs are worth investing in?
In recent years, the U.S. stock market has remained robust,S&P 500, Dow Jones Industrial Average, and Nasdaq CompositeThey have all reached record highs. For the vast majority of investors, it's not enough to simply track these indices' new peaks; they should also gain a deep understanding of how these indices differ and learn how to craft effective investment strategies tailored to each one's unique characteristics. Below are our ETF recommendations for U.S. equity indices.
U.S. Dividend Index ETF
Dividend‑index ETFs are well suited for investors who seek to both invest and receive regular income. Long‑term income‑seeking investors typically look for indices that demonstrate consistent dividend payouts over the long term and exhibit relatively low volatility.ETF, and sometimes they also employ the covered call strategy to boost returns. Here are some examples:
DVY Dividend Index ETF
DVY ($Ishares Select Dividend ETF(DVY.US)$) Tracks the Dow Jones U.S. Select Dividend Index, designed for investors seeking stable dividends, and comprises a diversified portfolio of large- and mid-cap stocks with strong dividend histories and promising prospects.
JEPI JPMorgan Equity Premium Income ETF
JEPI ($JPMorgan Equity Premium Income ETF(JEPI.US)$) is an innovative, strategy‑based ETF that holds the constituent stocks of the S&P 500 and employs a covered call strategy, aiming to provide investors with an income stream that combines equity dividends and option premiums. Designed to stay closely aligned with the market while enhancing total returns and cash flow, this ETF is particularly well suited for long‑term income‑seeking investors who desire yield levels above those of traditional dividend ETFs, yet wish to maintain some degree of market participation. However, it's important to note that while the covered call strategy can boost returns, it may cap the ETF's overall performance during significant market rallies, as the sold call options limit potential capital appreciation.
U.S. equity broad-based index ETFs
Conservative investors tend to favor low-risk, broadly diversified U.S. equity ETFs that closely track major market indices, such as:
SPY S&P 500 Index ETF
SPY ($SPDR S&P 500 ETF(SPY.US)$) Closely tracking the S&P 500 index, it offers diversified exposure to U.S. mid- and large-cap companies and serves as a cornerstone for many investors' core equity portfolios.
VTI Total Market Index ETF
VTI ($Vanguard Total Stock Market ETF(VTI.US)$) It covers nearly the entire range of market capitalizations in the U.S. stock market, offering investors a comprehensive way to participate in U.S. equity performance—at low management fees and with high stability.
IEFA Anshuo Core MSCI EAFE ETF
IEFA ($Ishares Trust Core Msci Eafe Etf(IEFA.US)$) Tracks the MSCI EAFE Index, with a focus on equities in developed international markets, helping investors diversify risk globally and achieve steady, sustainable returns.
U.S. Equity Strategic Index ETF
Aggressive investors often favor higher-risk, higher-potential‑return U.S. equity strategy ETFs, such as:
QLD Proshare Double Long Nasdaq ETF
QLD ($Proshares Ultra QQQ ETF(QLD.US)$) is a two-times leveraged product on the Nasdaq 100 Index, designed to deliver higher returns than the benchmark index over the short term, and is suitable for investors who are confident about the market's direction and willing to take on substantial volatility risk.
TECL Triple-Long Technology ETF
TECL ($Direxion Daily Technology Bull 3X Shares ETF(TECL.US)$It employs a 3x leverage strategy, closely tracking the performance of the technology sector. When investors are optimistic about the tech industry, it may deliver substantial excess returns, but it also entails significant downside risk.
RSP Average Weighted Index ETF
Although RSP ($Invesco Exchange Traded Fd Tr S&P 500 Equal Weight Etf(RSP.US)$) It is not a leveraged ETF, but compared to a market-capitalization-weighted index, it adopts an equal‑weighting approach across all constituent stocks, thereby implementing a more active allocation strategy. During periods of pronounced market volatility, the equal‑weighting strategy can potentially deliver returns that outperform traditional broad‑market indices, though it may also exhibit greater volatility over certain timeframes.
How do you trade U.S. stock index ETFs?
Before investing in U.S. stock index ETFs, you first need to open a brokerage (stock) account—just as you would open a bank account before depositing money.
Securities (Stock) Account Opening Procedure
Step 1: Go to the official Futubull website and register a new account.(Register Now)
Step 2: Open a securities account based on your Futu account.(Open an account now)
