How to Invest in US Stocks in 2025: A Comprehensive Guide for Vietnamese Investors

The year 2025 opens up many opportunities for Vietnamese investors seeking to access the global stock market. The US stock market is a strategic choice with over 6,300 traded securities, the largest market capitalization in the world, and home to many leading global corporations such as Apple, Microsoft, and Amazon. This diversity offers investors not only profit opportunities but also a way to hedge against risks concentrated in a single market.

Why Should You Own US Stocks?

The US stock market stands out from others for several main reasons. First is the richness of company choices. While the Vietnamese market has a limited number of listed companies, the US market provides investment opportunities in technology, banking, energy, and many other sectors. The two main exchanges, NYSE and NASDAQ, focus on the highest market cap companies with strong growth potential.

Second is superior performance. The S&P 500 index has increased over 39% since May 2018, while the VNIndex has decreased by more than 9% during the same period. The Nasdaq index has grown an impressive 64% thanks to the explosive growth of technology stocks.

Third, diversification helps reduce risk. When the Vietnamese economy faces pressure from high interest rates or exchange rate volatility, investors can rely on foreign investments to balance their portfolios.

Investment Opportunities: 10 Popular Foreign Stocks

New investors often seek guidance on which stocks to watch. Here is a list of top stocks frequently chosen by portfolio managers:

Note: Stock prices and P/E ratios are constantly changing. The data above is for reference only.

Ways to Play US Stocks from Vietnam

To directly trade US stocks on NYSE or NASDAQ, investors need US citizenship and accounts with brokerage firms. However, for foreign investors, the most common approach is to use derivative instruments instead of direct ownership.

Method 1: ETF Investment Funds

An (Exchange Traded Fund) (ETF) is a fund that moves in line with a benchmark index like the S&P 500. They combine the characteristics of investment funds with the tradability of stocks.

Advantages of playing US stocks via ETFs:

• Diversify your portfolio at low cost
• No need for deep knowledge of individual stocks
• Reduce risk from poor stock selection
• Suitable for long-term investors

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).

Method 2: CFD (Contract for Difference)

CFD (Contract for Difference) allows investors to participate in individual stocks without actual ownership. You are investing in price differences without owning the company.

Benefits of US stock trading via CFD:

• More flexible than ETFs, profit from both rising and falling markets
• Use high leverage to maximize returns with small capital
• Trade globally from a single platform
• Ability to short sell (short selling)
• Usually lower transaction costs

US stock trading via CFD enables you to trade indices like NAS100, SPX500, or specific stocks such as AAPL, AMZN, GOOG.

Major US Stock Exchanges: NYSE and NASDAQ

New York Stock Exchange (NYSE)

Founded in 1792, NYSE is the oldest stock exchange in the US. It hosts large, long-established, and stable American companies as well as international corporations complying with SEC regulations.

According to Statista, by mid-2022, NYSE’s market capitalization reached nearly $24.6 trillion. It operates from Monday to Friday, 9:30 AM to 4:00 PM US Eastern Time. Daily trading volume reaches billions of shares, indicating high liquidity.

( NASDAQ Stock Exchange

NASDAQ started in 1971 as the world’s first electronic exchange, later evolving into an automated trading market. It is the second-largest exchange by market cap in the US.

Listing requirements on NASDAQ are less strict than NYSE, so it often contains many small-cap stocks and emerging tech companies. Stocks here tend to be more speculative but also carry higher risks. Overall, NASDAQ is home to technology firms, from giants to promising startups.

The Three Most Important US Stock Indices

) S&P 500 Index

The S&P 500 includes 500 top companies selected based on market cap, liquidity, and other criteria. These companies account for about 80% of the total US market capitalization, making S&P 500 the most accurate representation of the overall US stock market trend.

The S&P 500 is calculated using a market-cap weighted method, meaning if all 500 companies drop 10%, the index also drops 10%. This is why investors often see the S&P 500 as a measure of the US economy’s overall performance.

Dow Jones Index ###DJIA###

The Dow Jones consists of 30 of the largest, most influential US companies, representing about a quarter of the total US stock market value. It is one of the oldest and most renowned indices worldwide.

Unlike the S&P 500, DJIA is calculated using a price-weighted method, so higher-priced stocks have more influence on the index movement. Dow Jones is known for its list of reputable blue-chip companies with a history of regular and stable dividend payments.

( Nasdaq Composite Index

This index includes all stocks traded on Nasdaq, mainly technology companies along with firms from various other sectors. Nasdaq Composite covers both large and small companies, including new ventures with small market caps and high speculation.

Therefore, Nasdaq Composite reflects the performance of the tech sector as well as investor sentiment towards high-risk stocks.

5 Steps to Start Investing

To effectively play US stocks, follow this process:

Step 1: Choose a Reputable Trading Platform

Selecting a broker is crucial for success. Look for platforms with:

• Clear international licensing
• Competitive transaction fees
• User-friendly interface
• Good customer support
• Advanced analytical tools

Step 2: Find Trading Opportunities

Use technical analysis tools, historical economic data, and blockchain data to identify optimal entry points. Study economic events, company earnings reports, and industry trends.

Step 3: Manage Capital Carefully

• Start with small capital if you are a beginner
• Understand leverage and associated risks
• Avoid investing all your funds in a single position
• Have a detailed disbursement plan before starting

Step 4: Execute Buy/Sell Orders

Place buy orders when you forecast prices will rise or short sell when you expect prices to fall. Make sure you understand order types )market orders, limit orders, stop orders### before executing.

Step 5: Monitor and Manage Positions

Since CFDs use leverage, profits and losses are amplified. Regularly check your portfolio, set reasonable profit targets, and cut losses promptly to protect your capital.

Essential Preparations Before Investing

( Knowledge Preparation

Regardless of the market, investors need solid knowledge of:

• Reading financial statements
• Basic technical analysis
• Risk management
• Trading psychology
• Economic events affecting the market

Use demo accounts with virtual money to familiarize yourself with the platform before investing real money.

) Strategy Development

Clearly define:

• Investment goals ###short-term or long-term###
• Personal risk tolerance
• Capital allocation ratio
• Stock selection criteria
• Profit-taking and stop-loss rules

( Understanding Risks

Trading US stocks involves risks. Stock prices can fall sharply, especially for new companies or volatile sectors. Using leverage amplifies the risk of losses. Only invest what you can afford to lose.

Conclusion: Start Your Investment Journey

Playing US stocks has become easier than ever thanks to technology and online trading platforms. If you are a long-term investor seeking stability, ETFs are a suitable choice. If you accept higher risks for higher returns, CFDs offer many opportunities but require better risk management skills.

The first step is to choose a reputable trading platform, equip yourself with knowledge, and start with small capital. The US stock market awaits patient, disciplined investors who continuously learn. Start now!