Investing in US Stocks from Vietnam: Opportunities and Challenges in 2025

By 2025, investing in US stocks in Vietnam will no longer be a distant dream. The US stock market, with over 6,300 traded symbols and the largest market capitalization in the world, is opening up countless opportunities for Vietnamese investors to seek superior profits. So, how can you start this journey effectively?

Why Invest in US Stocks?

Superior Returns Compared to Domestic Markets

Looking at the historical performance chart, the difference is clear. The S&P 500 index – representing the US stock market – has increased by over 39% since May 2018, while VNIndex has decreased by nearly 9%. In fact, the Nasdaq index has surged more than 64%, thanks to the explosive growth of technology stocks.

Global capital flows into tech giants like Apple, Google, Amazon create sustainable growth momentum for the US market.

Diversify Your Investment Portfolio

Instead of solely focusing on the domestic market, owning US stocks helps you reduce risk when the Vietnamese economy faces pressure. Especially now, with rising interest rates and VND depreciation, diversifying your portfolio becomes more necessary than ever.

Access to Leading Global Companies

Famous tech, financial, and retail giants worldwide are listed on NYSE and NASDAQ. From timeless companies like Tesla, Meta to green stocks like Pfizer, JPMorgan – all offer diverse profit opportunities.

The Two Largest US Stock Exchanges

NYSE: The Home of Long-Standing and Stable Companies

Founded in 1792, NYSE is not only the oldest exchange but also hosts America’s top companies. As of mid-2022, its market capitalization reached nearly $24.6 trillion. NYSE-listed companies are usually mature, with long histories, high stability, and regular dividends.

NASDAQ: The Playground for Tech Startups

Unlike NYSE, NASDAQ was established in 1971 as the world’s first electronic exchange. Its listing requirements are less strict, attracting many new tech companies and small startups. This results in higher volatility but also greater profit opportunities.

Three US Stock Indices You Need to Know

S&P 500: Representative of the Entire Market

Including 500 top companies, the S&P 500 accounts for about 80% of the total US market capitalization. Built on a market-cap weighted methodology, this index reflects the overall trend of the US stock market. If the total market cap of these 500 companies drops by 10%, the index also declines by 10%.

Dow Jones: Trustworthy Blue-Chip Companies

Comprising 30 of the largest and most influential companies, Dow Jones represents about a quarter of the entire market value. Calculated based on price weighting, higher-priced stocks have a greater impact on this index. Dow is famous for its list of strong companies that pay regular dividends.

NASDAQ: The Tech Sector Barometer

Including all stocks traded on NASDAQ, this index reflects the performance of the tech industry as well as investor sentiment towards speculative stocks. With many small-cap companies, NASDAQ is more volatile but offers higher potential returns.

Top 10 Notable US Stocks Today

Note: Stock prices are constantly changing. Data is for reference only at the time of writing.

Two Main Ways to Invest in US Stocks from Vietnam

Method 1: ETF – The Choice for Long-Term Investors

ETF (Exchange Traded Fund) operates by mimicking the fluctuations of an index, such as the S&P 500. Combining the features of an investment fund and stock trading, ETFs offer benefits like:

• Easy diversification at low cost
• No need for deep knowledge of individual stocks
• Reduced market manipulation impact through basket investments

Some famous ETFs include Vanguard S&P 500 ETF (VOO), SPDR S&P 500 ETF (SPY), iShares Core S&P 500 ETF (IVV).

Method 2: CFD – Flexible and Fast

CFD (Contract for Difference) allows you to trade individual stocks without owning them. You invest in price movements, not company ownership.

Advantages of CFDs:

• More flexible than ETFs: profit from both rising and falling prices
• Higher leverage, access to global markets from a single platform
• Ability to short sell, trade outside regular hours, with low transaction costs

CFDs are suitable for investors willing to accept higher risks for quick profits.

5 Steps to Start Trading US Stocks

Step 1: Choose a Reputable Broker

This is the most important step because your broker directly affects your profitability. Select licensed platforms with long operational histories and trusted by the investor community.

Step 2: Prepare Knowledge and Skills

Don’t rush to invest real money. Leading trading platforms often provide demo accounts with virtual funds to familiarize you with the platform, trading strategies, and analysis tools before real trading.

Step 3: Develop a Careful Financial Plan

Once confident, plan your capital allocation clearly. If your initial capital is small, you can use leverage, but be extremely cautious as leverage also amplifies losses.

Step 4: Execute Buy/Sell Trades

Place buy orders when expecting prices to rise or short sell when expecting declines. Always have a clear plan before entering a trade.

Step 5: Manage Positions – Take Profits and Cut Losses Timely

With leveraged derivatives, profits and losses are amplified. Regularly monitor your positions and proactively take profits or cut losses to protect your account.

What Investors Need to Prepare

Before your first investment, ensure:

1. Thorough Market Understanding: Research companies, indices, industry trends. Avoid trading based on emotions.

2. Clear Strategy: Are you investing long-term (ETF) or short-term (CFD)? What is your target profit rate? How much risk can you tolerate?

3. Strict Capital Management: Never put all eggs in one basket. Distribute your capital wisely across tools, sectors, and strategies.

4. Strong Mindset: Markets will go up and down. Be patient with your plan, and never let emotions dictate decisions.

Choose the Right Tools for You

If you want long-term investment and stable wealth building, ETF is the suitable choice – simple, safe, with steady returns.

If you have a high risk appetite, want more flexible trading, and seek quick profits, CFD is the tool to explore – but start with small capital and low leverage.

Whatever tool you choose, remember: the US stock market is waiting for persistent, disciplined investors with knowledge. Start today, but start smart!