The most common US stock ETF is an index ETF. If you are optimistic about the bullish trend of US stocks, you can buy index ETFs directly and hold them for a long time. Buffett has encouraged ordinary investors to buy index ETFs for many years, and in his will he advised his wife, who is not good at investing, to buy ETFs after her death.

Index ETFs are divided into two categories:

The first type is an ordinary index ETF, that is, an ETF that buys all or part of the securities in the securities market included in the index according to a standard composition of a certain index. The purpose is to achieve the same level of profit as the benchmark index.

Currently, the most common index ETFs in the US stock index include the S&P 500 Index ETF, the Dow Index ETF, and the Nasdaq 100 Index ETF.

Among them,$S&P 500 ETF-SPDR (SPY.US) $It is the first ETF in the world. It was issued by State Street Global Group in 1993. It mainly tracks and seeks to replicate the earnings of the S&P 500 Index. The weight of its constituent stocks and corresponding constituent shares is exactly the same as that of the S&P 500 Index. As of September 30, 2021, SPY's fund management scale reached 384.7 billion US dollars, ranking first in the world.

Another type is called index-enhanced ETF. Index-enhanced funds are not pure index ETFs. This means that in the process of indexed investment, in order to obtain investment returns that exceed the index, the fund adds enhanced active investment methods on the basis of passive tracking of the index, makes appropriate adjustments to the investment portfolio, and strives to obtain excess returns that exceed index performance while controlling risk.

Each index-enhanced ETF has its own investment strategy/stock selection factors, such as those issued by BlackRock$S&P 500 Growth Stock Index ETF-iShares (IVW.US) $It specifically selects high-growth companies from the S&P 500 constituent stocks for investment.

Looking at the past five years,$S&P 500 Growth Stock Index ETF-iShares (IVW.US) $The increase clearly outperformed the S&P 500 index benchmark.