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Explore Investment Opportunities at the US Stock Exchange in 2025
In 2025, the global financial market is opening up new opportunities for investors. Among them, the US stock exchange continues to attract the interest of the international investment community. The US not only has more than 6,300 traded stocks but also is the largest market in terms of market capitalization worldwide, focusing on major names like Apple, Microsoft, Amazon with impressive growth potential.
Why Should You Join the US Stock Market?
The US financial market offers many unique advantages compared to other markets. First, diversification of your investment portfolio is a key factor. Unlike domestic stock markets, the US stock exchange provides access to thousands of companies across various sectors worldwide.
Second, outstanding performance is undeniable. The S&P 500 index has recorded a growth of over 39% from May 2018 to now, while the VNIndex has increased by approximately 9%. Even more, the Nasdaq index has surged over 64%, reflecting the strong momentum of technology stocks.
Third, reducing concentration risk through international investment is an effective strategy, especially when the local economy faces challenges such as rising interest rates or exchange rate volatility.
Notable Leading Stocks to Watch
New investors often look for familiar names. Here is a list of 10 stocks worth considering:
Note: Stock prices are constantly fluctuating. The information above is for reference only at the time of writing.
Methods to Access the US Stock Market
To trade directly on NYSE or NASDAQ, investors need to open an account with a brokerage registered in the US. However, the mandatory condition is US citizenship. For foreign investors, the most feasible way is to use derivative instruments to access this market.
ETF Funds
An (Exchange Traded Fund) (ETF) is a portfolio fund that mimics a stock index, combining features of investment funds and listed stocks. Main benefits include:
Some popular ETFs tracking US indices include: Vanguard S&P 500 ETF (VOO), SPDR S&P 500 ETF (SPY), iShares Core S&P 500 ETF (IVV).
CFD Contracts for Difference (CFD)
CFDs allow investors to trade individual stocks without actual ownership. Instead, you participate in the price movements of securities. Advantages include:
NYSE and NASDAQ: The Two Leading US Stock Exchanges
New York Stock Exchange (NYSE)
Founded in 1792, NYSE is the first stock exchange in the United States. The oldest and largest US companies are listed here. Foreign companies can also list if they comply with SEC regulations.
This US stock exchange has grown significantly: from 1 million shares traded daily in 1888 to 5 billion shares daily in 2022. Currently, NYSE operates from Monday to Friday, 9:30 AM to 4:00 PM. As of 2022, NYSE’s market capitalization reached nearly $24.6 trillion.
( NASDAQ Stock Market )
NASDAQ started operating in 1971 as the world’s first electronic stock market. Initially just a quotation system, it gradually developed into an automated matching market.
Listing requirements at NASDAQ are less strict than NYSE, so this exchange often has many small-cap stocks or stocks from companies without US headquarters. Many new tech companies choose NASDAQ, making stocks on this exchange more speculative and riskier.
The Three Main US Stock Indices: S&P 500, Dow Jones, and NASDAQ
Standard & Poor’s 500 Index ###S&P 500(
The S&P 500 index comprises 500 top companies selected based on market capitalization, liquidity, free float structure, and industry sector. These companies account for about 80% of the total US market capitalization.
The S&P 500 reflects the overall trend of the US stock market. It is constructed using a market-cap weighted method, with each stock represented proportionally to its market value. If the total value drops by 10%, the index also drops by 10%.
) Dow Jones Industrial Average ###DJIA(
Dow Jones is one of the oldest and most famous indices worldwide. It consists of 30 of the largest and most influential US companies, representing about a quarter of the US stock market value.
Unlike the S&P 500, Dow uses a price-weighted method, so stocks with higher prices have a greater impact on index movements. Dow is known for its list of high-quality blue-chip companies, often with stable dividend policies. However, it does not represent small-cap, new tech, or international companies.
) NASDAQ Composite Index ###
The Nasdaq Composite is a market-cap weighted index of all stocks listed on NASDAQ, including foreign companies but mainly in the technology sector.
It includes both large and small companies, but unlike Dow and S&P 500, Nasdaq Composite contains many small-cap speculative stocks. Therefore, its movements more clearly reflect the tech sector’s performance and investor sentiment toward speculative stocks.
Steps to Prepare for Investing in the US Stock Market
1. Choose a Reputable Broker
A broker plays a crucial role, directly affecting your investment results. Choose a company regulated by reputable financial authorities.
2. Equip Yourself with Knowledge
Before investing real money, you need to understand the market, indices, trading mechanisms, and strategies suitable for your risk level. Many platforms offer demo accounts for practice without risking money.
3. Make a Financial Plan
Clearly define your available capital and acceptable risk level. If using leverage, do so cautiously as it can amplify both profits and losses.
4. Execute Trades
Start with small orders, regularly monitor your positions, and proactively take profits or cut losses in time.
Choosing Between ETF and CFD
If you are a long-term investor seeking stability, ETF is the suitable choice due to low costs and managed risks. Conversely, if you can tolerate higher risks and want quick profits, CFD offers greater flexibility and potential for higher returns.
Regardless of your choice, ensure you have thoroughly researched and only invest the amount you can afford to lose.