3 US ETFs to invest as S&P 500, Nasdaq 100 surge 27%, Dow 30 clocks 19% in 2021

In order to invest across leading themes in the US stock market, route your investments through US ETFs that gives you the advantage of diversifying in international stocks.

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Here are three US ETFs that are benchmarked to the three leading US stock market indices such as S&P 500, Nasdaq 100 and Dow 30.

Investors putting their money in US stocks have witnessed stellar returns in 2021. While some of the stocks have generated more than 100 per cent return, the three leading US stock market indices – S&P 500, Nasdaq 100 and Dow 30 – also delivered stellar returns in 2021. S&P 500 and Nasdaq 100 were up by almost 27 per cent, Dow 30 clocked nearly 19 per cent to end the year at a high note with the levels at their near all-time highs.

If you are looking to diversify across US stocks but unsure about the stocks to buy or sectors to choose, buying US exchange traded funds (ETFs) is a better move forward. By investing in ETFs, you essentially buy a bunch of stocks representing either an index or a specific sector.

In order to invest across leading themes in the US stock market, route your investments through US ETFs that gives you the advantage of diversifying in international stocks. From technology growth to value-stocks to large-caps to small caps, the US ETFs are available to cater to all your investment needs.

Here are three US ETFs that are benchmarked to the three leading US stock market indices such as S&P 500, Nasdaq 100 and Dow 30.

  1. SPY SPDR S&P 500 ETF Trust

Popularly known as the SPY ETF, the SPDR S&P 500 ETF is an ETF that tracks the S&P 500 index – an index of a diversified group of large-cap US companies across eleven major industries. S&P 500 index is widely regarded as the best single indicator of large-cap US equities and by investing in SPY ETF, you get exposure to some of the best US stocks. The top three sectors in the S&P 500 are Information Technology, Health Care and Communication Services, totalling about 50 per cent of the index, while the top three choices in the index are Microsoft, Apple and Amazon by index weightage.

  1. SPDR Dow Jones Industrial Average ETF Trust (DIA)

DIA tracks a price-weighted index of 30 large-cap US stocks as represented in the Dow Jones Industrial Average (DJI) or the Dow 30. Dow 30 is a unique index and is slightly different from some of the other leading US indices. Dow 30 represents companies that are only based in the US. Unlike other indices, in Dow 30, the selection is not governed by quantitative rules or market capitalization but as per the S&P indices website, “a stock is added to the index only if the company has an excellent reputation, demonstrates sustained growth and is of interest to a large number of investors.”

  1. Invesco QQQ Trust ( QQQ)

If you are looking to buy the top-notch US stocks of the Nasdaq stock market, the Invesco QQQ ETF is the one to buy. QQQ is an exchange-traded fund that gives you access to Nasdaq 100 companies in a single investment. Some of the top-performing US stocks of 2020 such as Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Google collectively known as FAANG stocks are a part of the Nasdaq 100 index.

Disclaimer: The investment decision in these ETF’s or any ETF’s or stock should be taken on your own after carefully evaluating the business and other fundamentals of the company or after consulting one’s financial advisor. It is not a recommendation to buy, hold or sell in any of the stocks or ETFs. Financial Express Online does not bear any responsibility for their investment advice.

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