Guide to Investing in U.S. Stocks from Vietnam 2025: How to Effectively Trade U.S. Stocks

If you are looking to participate in the US stock market in 2025, this is a smart investment decision. The US owns the largest stock market in the world with over 6,300 listed securities, and also has the highest market capitalization globally. It is home to leading technology companies such as Apple, Google, Amazon — names with strong growth potential that attract millions of international investors.

The US stock market is a diverse wonderland with countless high-profit investment opportunities. So how can Vietnamese investors access and trade US stocks? This article will guide you in detail on how to invest in US stocks and suitable investment tools.

Why choose to invest in US stocks?

The main reason investors choose the US market is its unparalleled diversity of companies compared to the Vietnamese stock market. The New York (NYSE) and NASDAQ exchanges are the two largest stock exchanges in the world by market capitalization, offering the most attractive profit opportunities. Here, you can invest in global tech giants like Facebook, Amazon, Apple, and Google.

Second, profit margins in the US stock market far surpass those of other markets. The S&P 500 index — representing the US market — has increased by over 39% since May 2018, while the VNIndex has decreased by nearly 9%. The Nasdaq index has surged even more, at 64%, thanks to the explosive growth of tech stocks.

Diversifying your portfolio by owning US stocks instead of focusing solely on the domestic market helps reduce risks when the local economy faces difficulties. Especially in the context of rising interest rates and a depreciating local currency, playing US stocks becomes a reasonable way to protect assets.

Top 10 US stocks chosen by investors

If you don’t know which stocks to pick, here is a list of popular US stock codes:

Note: Stock prices are constantly fluctuating. This information is for reference only at the time of writing.

How to trade US stocks from Vietnam

To buy stocks directly on NYSE or NASDAQ, you need to create an account with a US brokerage firm. However, the mandatory condition is to have US citizenship.

For foreign investors, the only way to participate in the US stock market is through derivative instruments. The two most common tools are ETFs or CFD contracts.

1. ETF Investment Funds

ETF (Exchange Traded Fund) or index funds mimic the fluctuations of a reference index, such as a stock index. ETFs have characteristics of both an investment fund and a listed stock on major exchanges worldwide.

Benefits of investing in ETFs instead of individual stocks include:

• Easy diversification of your portfolio at low cost
• No need for in-depth knowledge of specific stocks
• Reduced market manipulation risk by investing in a basket of securities

Some famous US stock index ETFs: Vanguard S&P 500 ETF (VOO), SPDR S&P 500 ETF (SPY), iShares Core S&P 500 ETF (IVV)…

2. CFD Contracts

With CFDs, you can invest in individual stocks without a pre-set portfolio like ETFs. However, buying stocks via CFDs does not mean you own a share of the company; it’s an investment in price differences.

This feature makes CFDs more flexible than ETFs because you can profit whether the stock price goes up or down. Benefits of CFD trading include: higher leverage, access to global markets, ability to short sell, after-hours trading, and lower costs.

Main US stock exchanges: NYSE and NASDAQ

New York Stock Exchange (NYSE)

Founded on May 17, 1792, NYSE is the first stock exchange in the US. The oldest and largest US companies are listed here. Foreign companies can also list if they comply with SEC rules.

NYSE surpassed 1 million shares traded in a day in 1888, and by 2022, this number reached 5 billion shares. Currently, NYSE operates from Monday to Friday, 9:30 AM to 4:00 PM. According to Statista, NYSE’s market capitalization in mid-2022 was nearly $24.6 trillion.

( NASDAQ Stock Exchange )

NASDAQ is the second-largest stock exchange in the US by market capitalization. Established on February 8, 1971, it is the world’s first electronic stock market.

Initially, NASDAQ was just a “quote system,” gradually evolving into an automated matching market. Listing requirements on NASDAQ are less strict than NYSE, so it often hosts many small-cap stocks or companies without US headquarters.

Companies listed on NASDAQ are often new tech firms, so stocks here tend to be more speculative and carry higher risks.

The three most important US stock indices

The US stock market has over 5,000 indices, but the global focus is on three main indices: S&P 500, Dow Jones, and NASDAQ.

S&P 500 Index ###S&P 500(

The S&P 500 consists of 500 top US companies, selected based on market cap, liquidity, free float, sector, and financial health. 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 weighting method, with each stock weighted according to its market value. If the total value of these 500 companies drops by 10%, the index also drops by 10%.

) Dow Jones Index ###DJIA(

The Dow Jones Industrial Average is one of the oldest, most famous, and widely used indices worldwide. Comprising 30 of the largest and most influential US companies, DJIA represents about a quarter of the total US stock market value.

Unlike the S&P 500, DJIA is built using a price-weighted method. Therefore, stocks with higher prices have a greater impact on the index.

Dow is known for its list of top blue-chip US companies, famous for regular and consistent dividend payments. Its fluctuations reflect investor expectations about income and risk of large companies, but it does not represent small-cap, tech, or international stocks.

) Nasdaq Composite Index

The Nasdaq Composite is a market-cap weighted index of all stocks traded on NASDAQ, mainly tech stocks but also including many other sectors such as finance, industrials, insurance, and transportation.

The Nasdaq Composite includes both large and small companies, as well as many small-cap speculative stocks. Therefore, it better reflects the performance of the tech sector and investor sentiment toward speculative stocks.

What to prepare when starting US stock investment?

1. Choose a reputable broker

A broker plays a crucial role, directly affecting your potential profits. Choose a reputable, licensed platform that protects investors’ assets.

2. Prepare thorough knowledge

Regardless of the market, investors must equip themselves with sufficient knowledge to develop suitable strategies. Many platforms offer demo accounts with virtual money to practice before investing real money.

3. Make a careful financial plan

Once confident, plan your capital allocation carefully. You can leverage if your initial capital is small, but use it wisely because leverage is a double-edged sword — it can increase gains but also amplify losses.

Steps to execute US stock transactions

Step 1: Log into your trading account on the chosen platform

Step 2: Search for trading opportunities using analysis tools and economic calendars to explore trading possibilities during market volatility

Step 3: Deposit margin funds according to the amount and leverage you want to use. If unsure, start with a small capital

Step 4: Execute buy/sell trades — buy when expecting prices to rise or short sell when expecting prices to fall

Step 5: Monitor your positions and take profits or cut losses promptly, as derivatives trading with leverage can magnify gains and losses

Start your US stock investment journey

The US stock market offers abundant investment opportunities for Vietnamese investors. If you are a long-term investor, ETFs are a suitable choice. If you can tolerate higher risks and seek higher profits, CFDs are worth considering.

When ready, research thoroughly to find a reputable trading platform to accompany you. Mastering how to trade US stocks will add a high-profit potential investment channel.

Wishing you success on your investment path!