Many people seek investment advice from the stock god Buffett, but he has only recommended one type of product in public, which is index funds.
Buffett stated that through regular investment in index funds, an amateur investor who knows nothing about anything can often outperform most professional investors.
In fact, there are many ways to invest in the US stock market, and ETFs are one of the low-cost and flexible methods. Especially in the current volatile market conditions, many investors are looking for assets worth holding for the long term and capable of yielding relatively stable returns. And US stock index ETFs are one of them.
Looking at the performance of US stock index ETFs over the past decade, the overall performance is also remarkable, with the highest cumulative increase reaching 470%.
As shown in the chart, the best performing ETF is the Nasdaq 100 index ETF. $Invesco QQQ Trust (QQQ.US)$ Performance is the best, with a cumulative increase of up to 470% in the past decade.
This ETF is designed to track the Nasdaq 100 index, which includes 100 large local and international non-financial companies listed on the US Nasdaq, mainly in the technology sector, and includes several US technology giants collectively known as 'FAANG'.
Although the Nasdaq 100 index has experienced rapid growth in the past, investors still need to pay attention to QQQ's focus on technology stocks. It can capture the rise of technology stocks, but its risk diversification capability is relatively weak.
Following closely behind is the ETF that tracks the S&P 500 index in the United States, $Vanguard S&P 500 ETF (VOO.US)$ with a cumulative increase of 258%.
VOO tracks the S&P 500 index, which represents 500 large companies in the United States. It basically covers large companies in various industries in the United States and can be said to be one of the indices that best represents the overall stock prices of American companies.
VOO includes well-known technology giants such as Nvidia, Apple, Microsoft, as well as JPMorgan, Walmart and other major companies in various industries in the United States. Investors buying ETFs linked to the S&P 500 are essentially buying shares of major companies in the United States.
In addition to VOO, there are also ETFs linked to the S&P 500 index. $iShares Core S&P 500 ETF (IVV.US)$Please use your Futubull account to access the feature.$SPDR S&P 500 ETF (SPY.US)$ Both recorded good gains, with cumulative gains of over 250% respectively.
The fifth is an ETF that tracks the Dow Jones Industrial Average Index. $SPDR Dow Jones Industrial Average Trust (DIA.US)$ It has also achieved a significant increase of 205% in the past ten years.
This ETF aims to track the Dow Jones Industrial Average Index, which is the second oldest stock index in the United States and consists of 30 large American companies, representing various important sectors of the U.S. economy.
An ETF that tracks the market index of small companies in the United States. $Vanguard Russell 2000 ETF (VTWO.US)$Please use your Futubull account to access the feature.$iShares Russell 2000 ETF (IWM.US)$ Average rise of nearly 110%.
The Russell 2000 Index is an important stock market index that measures the performance of small-cap companies in the United States. This index covers a wide range of stocks in the small-cap segment and is suitable for investors who want to invest in small-cap stocks through a representative index.
IWM is the most representative Russell 2000 Index ETF, tracking 2000 small-cap US companies. In addition, Vanguard's ETF - VTWO is also popular among investors.
In addition, there are ETFs in the US stock market that track the S&P MidCap 400 Index. $iShares Core S&P Mid-Cap ETF (IJH.US)$N/A.$Vanguard S&P Mid-Cap 400 ETF (IVOO.US)$and$Spdr S&P Midcap 400 Etf Tr Unit Ser 1 Standard & Poors Dep Rcpt (MDY.US)$ Over the past ten years, the cumulative increase has exceeded 150%.
In fact, John Bogle, the founder of Vanguard Group and the "father of index funds," also said,
Over the long term, beating the market is just a myth, and any fund is difficult to escape the iron law of mean reversion. Therefore, in order to achieve the maximum possible market return, it is necessary to reduce the cost of buying and holding funds, and then hold them for as long as possible. The best way to hold this market portfolio is to invest in index funds.
At the current moment, the United States is about to enter an interest rate cutting cycle, and the market is in a volatile environment. Investing in index ETFs may be a good choice.
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Editor/Somer