Foreign Stock Investment Guide 2025: Opportunities & Strategies to Participate in the US Market from Vietnam

The U.S. stock market accounts for nearly 80% of the total global market capitalization, with over 6,300 listed companies on major exchanges. It is home to leading global corporations such as Apple, Microsoft, Google, and Amazon—companies with outstanding growth potential. For Vietnamese investors seeking diversification opportunities, the U.S. market offers benefits that cannot be ignored.

Why Should Investors Consider Investing in Foreign Stocks?

Superior Returns

Compared to the Vietnamese stock market, U.S. indices show much more impressive returns. The S&P 500 has increased over 39% since May 2018, while VNIndex declined by 9% during the same period. The Nasdaq (NDX) index alone surged over 64%, driven by the explosive growth of top technology companies.

Risk Diversification

Owning foreign stocks helps investors mitigate the impact of domestic economic fluctuations. Especially in the context of rising interest rates and local currency depreciation, diversifying into international markets becomes an effective asset protection strategy.

Global Company Access

From technology, healthcare, finance to energy— the U.S. market provides limitless options. Investors can own shares of globally influential companies without having to select individual stocks.

Top 10 U.S. Stocks for New Investors

Note: Market values and P/E ratios are constantly changing in real-time.

How to Access the U.S. Stock Market from Vietnam

To trade directly on NYSE or NASDAQ, investors must open accounts with U.S. brokerage firms. However, the prerequisite is holding U.S. citizenship—a barrier for most international investors.

Instead, individual investors can access U.S. stocks through two main derivative tools:

Option 1: Index Funds (ETF)

An (Exchange Traded Fund) functions as a basket of stocks traded like a regular stock on global exchanges. This method is suitable for long-term investors because:

• It creates automatic balance in the portfolio without requiring deep expertise
• Lower transaction costs compared to individual stocks
• Reduces concentration risk through diversification across a basket of securities

Popular 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).

Option 2: Contract for Difference (CFD)

CFDs allow trading on individual stocks. Unlike ETFs, when trading CFDs, you do not actually own the stock but invest in price movements. Key advantages:

• More flexible than ETFs, profiting from both rising and falling markets
• Supports short selling (short selling)
• Uses high leverage, up to 1:200 on some instruments
• 24/5 trading with low costs

Major U.S. Stock Exchanges

New York Stock Exchange (NYSE)

Founded in 1792, NYSE is the oldest stock exchange in the U.S. Major, long-established American companies choose to list here. As of 2022, NYSE’s daily trading volume reached 5 billion shares (.

According to financial sources, NYSE’s market capitalization in mid-2022 was nearly $24.6 trillion. Trading hours: Monday - Friday, from 9:30 AM to 4:00 PM )U.S. time(.

) NASDAQ Stock Market

NASDAQ started operating in 1971 as the world’s first electronic exchange. It is the second-largest exchange in the U.S. by market cap. Due to less stringent listing requirements than NYSE, NASDAQ attracts many emerging tech companies and small-cap firms.

Stocks on NASDAQ tend to be more speculative but also hold greater growth potential. This market clearly reflects technology sector trends and investor attitudes toward high-growth stocks.

Key U.S. Stock Indices

S&P 500 Index

The S&P 500 comprises 500 leading companies, representing about 80% of the total U.S. market capitalization. It uses a market-cap weighted methodology—larger companies have a greater influence on index movements.

The S&P 500 reflects the overall health of the U.S. economy and is considered the best long-term indicator of U.S. stock market performance.

Dow Jones Industrial Average ###DJIA(

The DJIA includes 30 of the largest and most influential companies in the U.S., representing about 25% of the total market value. Unlike the S&P 500, DJIA uses a price-weighted method—stocks with higher prices have more impact on the index.

Dow is famous for its blue-chip stock list—stable companies that pay regular dividends. It does not represent small-cap or emerging tech stocks.

) Nasdaq Composite Index

This index includes all stocks traded on NASDAQ, mainly tech companies but also financials, industrials, and insurance. Nasdaq Composite is more diverse, including small-cap speculative stocks.

Nasdaq Composite clearly shows the performance of the tech sector and investor trends toward high-growth stocks.

Preparation Steps Before Starting Investment

1. Choose a Reputable Broker

A broker directly affects transaction costs, safety of capital, and technical support. Select brokers regulated by reputable federal or international authorities.

2. Build Investment Knowledge

Avoid entering the market without proper understanding. Many trading platforms offer demo accounts with virtual money for practice. Use this phase to learn technical analysis, risk management, and trading strategies.

3. Develop a Specific Financial Plan

Clearly define your investment amount, acceptable risk level, and capital call timing. If using leverage, start with low ratios and increase gradually as you gain experience.

Foreign Stock Trading Process

Suppose you choose a CFD platform for trading; the basic process is as follows:

Step 1: Register and verify your trading account

Step 2: Use analysis tools ###price charts, economic event calendars( to identify opportunities

Step 3: Deposit margin into your account )usually starting from $50(

Step 4: Place buy orders when predicting price increases or sell short when expecting declines

Step 5: Monitor your positions regularly, ready to take profit or cut losses promptly

Final Advice for Investors

Investing in foreign stocks is a smart way to diversify assets and capture global growth. However, success does not come from luck but from knowledge, careful planning, and disciplined execution.

If you are a long-term investor, ETFs are the most suitable form. If you can tolerate higher risks and seek greater profits, CFDs offer higher earning opportunities— but also require strict risk management.

The first step is to choose a reputable broker, learn through demo accounts, and only start trading with real money when truly ready. Wishing you success on your journey into foreign stock investment!