Investing in America: 6 ways to access the world’s largest stock market

By Staci West on 26 June 2026 in US

The United States is a global powerhouse. It boasts the world’s largest economy, its most dominant stock market, and a population of more than 340 million people. This means it shouldn’t be ignored by investors, particularly those wanting longer-term exposure to innovative growth companies.

But there are potential downsides. Outperforming this market is a challenge as it’s closely followed by thousands of analysts. It’s also heavily exposed to technology, which can be both a blessing and a curse.

Here, we outline everything you need to know about investing in the US, explore the pros and cons, and suggest investment funds to consider.

Overview

The US is rarely out of the news. It occupies a huge presence in world affairs, and this has arguably increased since Donald Trump moved into the White House. It has a nominal Gross Domestic Product (GDP) of $32.38 trillion – comfortably ahead of China’s $20.85 trillion – and a thriving stock market*. Decisions made in Washington, such as going to war and imposing tariffs, can affect thousands of companies and consumers worldwide.

Global giants

A key attraction of investing in the US market is getting exposure to world-class, innovative names in a variety of sectors. Fifteen of the largest companies on the planet – in terms of market capitalisation – are listed on this country’s stock markets. This includes the six biggest on the planet**:

• NVIDIA — $5.07 trillion
• Apple — $4.41 trillion
• Alphabet (Google) — $4.24 trillion
• Microsoft — $2.78 trillion
• Amazon — $2.54 trillion

Concentration risk

Therefore, if you opt for a US tracker fund that replicates US indices, you’ll naturally have a heavier weighting towards this area of the market. While that’s a benefit when everything is flying, as has been the case in recent years, it will be a negative if the sector runs into problems.

US stock market indices

There are three main US stock market indices: the S&P 500, the Dow Jones Industrial Average, and the Nasdaq.

• S&P 500: This tracks 500 of the largest companies listed in the US. It’s weighted by market capitalisations, which means larger companies such as Apple have a bigger influence. This has become increasingly important in the technology era, as performance has become heavily concentrated in a small number of mega-cap stocks. The top 10 holdings now account for 40.8% of the index***, whereas 20 years ago the top 10 represented only around a quarter.
• Dow Jones Industrial Average: The DJIA tracks 30 large blue-chip companies. Currently, this includes Amazon, Walt Disney, American Express, and Coca-Cola. It’s weighted on the share price of its stocks.
• Nasdaq: This is a much broader measure and includes more than 3,000 stocks listed on the Nasdaq Stock Exchange. It’s regarded as a benchmark for the global technology sector.

Difficulty in outperforming

Thousands of analysts follow the US stock market. The fact that it’s so closely scrutinised makes it very difficult for larger businesses to deliver positive surprises. For example, according to SPIVA Scorecards, only about 10% of large-cap investment funds consistently outperform the S&P 500****, prompting investors to question whether active management is worthwhile. It’s also why FundCalibre’s Elite Ratings are useful. Our experts analyse numerous US funds to find those with the best management teams and investment approaches.

Six ways to invest in the US

How you choose to invest in the US can also influence returns. So, what are the options, and how do you know which approach is most suitable?

1. Buying individual stocks – You can buy shares in individual companies, but you’re reliant on that business performing well. If the price rises, you’ll benefit. If it falls, you’ll lose money. A better option is a fund that pools money from many investors, as it provides diversification and doesn’t require you to make asset allocation calls.
2. Trackers and Exchange-Traded Funds – A passive approach may suit investors wanting broad exposure to the US. If the market rises, so do their investments. If it falls, then their holdings follow suit. A US-focused tracker or exchange-traded fund is the cheapest way to get access to the US market, but you won’t have the possibility of outperforming.
3. Active US funds – The next option is an actively-managed US fund. Many of those will be heavily weighted towards the largest US-listed companies. Currently, this means tech names such as Apple. These firms have seen share prices soar in recent years, largely due to the AI boom. However, some US funds will have exposure to stocks from further down the market capitalisation scale.
4. Investing by themes – You can invest in funds that focus on growing companies – or more established names that pay dividends to investors from their profits. There are also portfolios whose managers try to generate both income and growth. That’s why it’s important to understand a fund’s philosophy.
5. Smaller companies – Investing in medium and smaller-sized companies can often be a successful approach for investors, as these businesses are less closely followed by analysts. They may also be at an earlier stage in their development or operating in a niche sector that has a greater chance of surprising on the upside.
6. Diversified approach – The final option is to have a global fund that invests in US companies, as well as those listed in other countries. This provides a degree of diversification. You’ll need to decide how much US exposure meets your needs, then review individual funds to ensure their allocations are suitable.

Is now the right time to invest in the US?

US stock markets hit record highs in early June, and the expectations are pretty positive for the rest of 2026. The S&P 500 is forecast to climb 6% to a year-end target of 7,600^, according to Ben Snider, chief US equity strategist at Goldman Sachs Research.

Should you commit your money to the US now? Well, a golden rule of investing is that you need to be making decisions over periods of at least five years. This time horizon enables investors to ride out stock-market volatility and economic cycles that can affect returns.

Five funds to consider for active exposure to the US

*Source: Statista, April 2026
**Market Cap as of 23 June 2026
***Source: JPMorgan, 20 May 2026
****Source: S&P Global, SPIVA research, 31 December 2025
^Source: Goldman Sachs, 29 April 2026
^^Source: fund factsheet, 31 May 2026