The following is a list of the best companies in the US ranked by their market capitalisation.
|Johnson & Johnson|
|Exxon Mobil Corp.|
|Meta Platforms Inc|
|JPMorgan Chase & Co.|
|Coca-Cola Company, The|
The US stock market is one of the world’s oldest and largest stock markets. It has more than 6,000 domestic and international companies listed on its stock exchanges. The US stock market hosts some of the biggest global names across all sectors. The types of companies listed on the US stock exchanges are mega-cap, large-cap, mid-cap and small-cap.
Mega cap stocks are the largest companies with a market cap above USD 200 billion. Large-cap companies are stocks with a market cap of more than USD 10 billion. Mid-cap stocks belong to companies with a market cap in the range of USD 2 billion to USD 10 billion. While small-cap stocks belong to companies with a market cap between USD 300 million and USD 2 billion.
Investors seeking international exposure should consider investing in US stocks. Diversifying internationally will help the investment portfolio in generating significant returns. Investing in US stocks will help you benefit from dollar appreciation as well.
However, you need to closely track the US economy and the markets. Furthermore, investing in US stocks has its own risks. The inherent volatility in the markets and also the forex risks are inevitable while investing internationally.
Following are the benefits of investing in US stocks:
US companies host the biggest tech companies and globally recognized brands. The US stock market also has companies from China, Germany, Japan, etc. listed on its exchanges. These companies are well-known all over the world. Because the US is a global power, its stock market is worth investing in.
Through US stock, you can spread out and diversify your investments in the US economy to reduce economic risks. A country’s stock market is affected by political issues, elections, the budget, etc. Diversifying your money is a good way to protect your investments from a sudden impact. Even though gold and bonds are good investments, putting money into US stocks is a good way to diversify your portfolio. Also, it may have the potential to set you up for good returns.
You can do fractional investing in the US markets. To elaborate, 1 share of Apple is about USD 163, i.e., approximately INR 13,000. It may seem quite expensive to invest in the US stock market. However, Indians can invest in fractions. You can buy Apple shares in fractions for INR 2,000 or INR 5,000, as it may seem fit for you. Thus, investing in US stocks is for everyone who wishes to diversify their investments geographically.
When you buy US stocks as an investment, you pay for them in dollars. While buying US stocks, you are betting not only on the stock’s value but also on the dollar. If the dollar goes up against the rupee, your investment goes up, too.
The US is home to some of the biggest tech giants. Innovation comes every day. New companies, technologies, and products emerge from time to time. Having access to participate in the growth story of such companies and the economy will help you generate significant returns.