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Investing in US Stocks from Vietnam: How to Approach the World's Largest Stock Market
The US stock market is an attractive choice for Vietnamese investors in 2025. It is not unreasonable that international investors always pay attention to this market – it is the largest stock exchange in the world with over 6,300 stocks from domestic and international companies. Market capitalization has reached record levels, gathering technology giants with significant growth potential such as Apple and many other large corporations.
With a diverse range of industries and high profit opportunities, it is clear that investing in US stocks is becoming a trend among local investors. So how to get started? This article will provide a detailed guide on how to approach and buy US stocks from Vietnam.
Why Should You Buy US Stocks?
Diverse Opportunities and High Income
The US stock market offers a wider selection of companies compared to the domestic market. If you only invest in Vietnam, your assets will be limited in number. But in the US, you can access leading global companies like Facebook, Amazon, Apple, Google, and thousands of others.
From a profit perspective, the numbers speak for themselves: the return rate of the US market far exceeds that of Vietnam. The S&P 500 index has increased over 39% since May 2018, while VNIndex has decreased by more than 9%. Nasdaq, which includes technology companies, even surged over 64% – an impressive figure driven by the explosive growth of tech stocks.
Risk Reduction Through Diversification
If you only invest all your capital in the domestic market, you are very vulnerable to fluctuations in the local economy. Additionally, when the local currency depreciates or interest rates rise, your local portfolio also suffers. Buying US stocks helps reduce risks by diversifying capital into foreign markets.
Ways to Buy US Stocks from Vietnam
The biggest challenge is that foreign investors cannot open accounts directly at NYSE or NASDAQ without US citizenship. However, there are two popular derivative tools that allow you to access this market:
1. Exchange-Traded Fund (ETF) (
ETFs are funds that operate by mimicking the fluctuations of an index, such as a stock index. They combine features of both investment funds and common stocks, listed and traded on most major stock exchanges.
Advantages of ETFs:
Some famous ETFs tracking the S&P 500 include: Vanguard S&P 500 ETF )VOO(, SPDR S&P 500 ETF )SPY(, iShares Core S&P 500 ETF )IVV(.
) 2. Contract for Difference (CFD)
CFDs allow you to invest in individual stocks without creating a portfolio like ETFs. The key difference: when trading CFDs, you do not actually own the shares but profit from price differences.
Benefits of CFDs:
Top 10 US Stocks to Consider
If you are unsure where to start, here are 10 stocks that many investors are interested in:
Note: These values are constantly changing. The information is for reference only.
Steps to Trade US Stocks
To start buying US stocks, you need to follow these steps:
Step 1: Register an Account Choose a reputable trading platform and fill in your personal information on the registration form.
Step 2: Discover Opportunities Use the trading platform’s analysis tools ###economic calendar, price charts, news( to find opportunities when the market is volatile.
Step 3: Deposit Margin Funds Deposit money into your trading account. Most platforms require a minimum of $50. The amount you deposit depends on the number of assets you want to buy and the leverage used.
Step 4: Place Buy/Sell Orders You can place buy orders when you expect prices to rise, or short sell when you anticipate prices will fall in the future.
Step 5: Manage Positions Regularly monitor your trading positions. Since derivatives use leverage, your profits and losses will be amplified accordingly. Be proactive in taking profits or cutting losses to control risks.
The Two Main Stock Exchanges: NYSE and NASDAQ
) New York Stock Exchange (NYSE) ###NYSE(
NYSE is the first stock exchange in the US, established in 1792. Initially, only three government bonds and two bank stocks were traded, but today it is the hub for most of the oldest and largest US companies.
Foreign companies can also list on NYSE as long as they comply with SEC regulations. In 1888, NYSE surpassed 1 million shares traded in a single day. By 2022, this number increased to 5 billion shares.
NYSE operates from Monday to Friday, 9:30 AM to 4:00 PM New York time. According to 2022 data, NYSE’s market capitalization reached nearly $24.6 trillion.
) NASDAQ Stock Market
Nasdaq is the second-largest stock exchange in the US. Opened in 1971, it was the world’s first electronic stock exchange.
Listing requirements on NASDAQ are less strict than NYSE, attracting many small-cap and tech startups. As a result, stocks on NASDAQ tend to be more speculative and carry higher risks.
Key US Stock Indices to Know
The US market has thousands of indices created by financial companies and investment funds. However, the three most globally recognized indices are:
S&P 500
This index comprises 500 of the top companies by market capitalization. Companies are selected based on market cap, liquidity, free float, industry, financial health, and trading history.
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 because it is weighted by market cap – each stock’s influence corresponds to its market value.
Dow Jones ###DJIA(
Dow Jones is one of the oldest and most famous indices worldwide. It consists of 30 of the largest and most influential companies in the US, representing about a quarter of the total market value.
Unlike the S&P 500, DJIA is calculated using price weighting, meaning higher-priced stocks have a greater impact on overall movement. Dow is known for its blue-chip companies with steady dividend payments.
) NASDAQ Composite
NASDAQ Composite is a market-cap weighted index of all stocks traded on NASDAQ, including foreign companies, but mainly technology firms. You will also find stocks from finance, industrials, insurance, transportation sectors.
NASDAQ Composite includes both large and small companies, including speculative small-cap stocks. Therefore, it reflects the performance of the tech sector and investor attitudes toward high-risk stocks.
What to Prepare Before Buying US Stocks?
1. Choose a Reputable Trading Platform
The service provider plays a crucial role, directly affecting your profitability. Choose a reputable company regulated by international authorities.
2. Equip Yourself with Sufficient Knowledge
Before investing real money, thoroughly research the US market, how stocks, ETFs, CFDs work, and basic investment strategies. Many platforms offer demo accounts with virtual money for practice.
3. Develop a Detailed Financial Plan
Once confident, decide how much money to invest. If your initial capital is limited, you can leverage – but use it cautiously as it can amplify both gains and losses.
Start Taking Action
Buying US stocks from Vietnam is no longer too difficult. If you plan for long-term investment, ETFs are a suitable choice due to lower risks. If you can tolerate higher risks and seek greater profits, CFDs are the tool to consider.
The next step is to choose a reputable trading platform, research thoroughly, and start with a small capital. Always monitor the market, manage risks carefully, and adjust your strategy as needed. Wishing you success in your US stock investment journey!