Betting on the US economy? Here are 3 ASX ETFs to consider

Historically, the US stock market has provided long term growth for investors.

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The start of 2025 has been filled with political tension, which has resulted in volatility in the US stock market. 

When the market is experiencing volatility, it can be difficult to pull the trigger on investments. 

For example, after a record-breaking 2024, blue-chip stocks like Nvidia Corp (NASDAQ: NVDA) and Tesla Inc (NASDAQ: TSLA) have had rough starts to 2025. 

These stocks are down around 15% and 30%, respectively, YTD. 

But if we zoom out and take a long-term view, investing in the US stock market has historically brought investors solid returns. 

For example, the total return of the S&P 500 Index (SP: .INX) produced a compound annual growth rate of 10.1% over the past 96.5 years.

One strategy that investors might consider to offset some risk is to focus on investing in markets rather than individual stocks. 

One way to gain exposure to markets like the S&P 500 index is through ASX-listed Exchange Traded Funds (ETFs).

If you are not phased by the bumpy start to 2025, here are three US-focused ETFs to consider that have provided strong returns historically. 

the australian flag lies alongside the united states flag on a flat surface.

Image source: Getty Images

iShares S&P 500 ETF (ASX: IVV)

This ETF aims to replicate the performance of the S&P 500 Index, encompassing the 500 largest publicly traded U.S. companies by market capitalisation

Its largest holdings by weight are: 

Apple Inc: 7.24%

Microsoft Corp: 5.81%

Nvidia Corp: 5.63%

It has increased by 94.08% over the last five years. 

Vanguard US Total Market Shares Index ETF (ASX: VTS)

This ETF seeks to track the performance of the CRSP US Total Market Index, providing investors with exposure to a broadly diversified collection of securities spanning large, mid, and small-cap stocks.

It has the same three largest holdings as IVV; however, the VTS ETF provides exposure to approximately 3,600 holdings. 

Its largest holdings by weight are: 

Apple Inc: 6.08%

Microsoft Corp: 5.26%

Nvidia Corp: 4.76%

VTS has risen 99.66% over the last five years. 

BetaShares NASDAQ 100 ETF (ASX: NDQ)

This ETF provides access to the 100 largest non-financial companies listed on the NASDAQ stock exchange, including major technology firms.

As the name suggests, the NDQ ETF includes 100 holdings, significantly less than the other two ETFs listed above. 

Its largest holdings by weight are: 

Apple Inc: 9.5%

Microsoft Corp: 7.7%

Nvidia Corp: 7.6%

It has increased 122.11% over the last five years.

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Nasdaq 100 ETF, Microsoft, Nvidia, Tesla, and iShares S&P 500 ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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