US Stock ETF Assets Surpass $9 Trillion: Three Advantages Drive Continuous Global Investor Buying

US Stock ETF Assets Exceed $9 Trillion, Funds Continue to Flow In

On July 28, 2026, according to the latest data from the Investment Company Institute (ICI), assets under management of US exchange-traded funds (ETFs) surpassed the $9 trillion mark for the first time, up about 15% year-over-year. ETFs tracking core indices such as the S&P 500 and Nasdaq 100 contributed the most to this growth. This milestone once again highlights global investors' preference for the US stock market. Against a backdrop of low interest rates, high inflation, and geopolitical risks, why buying US stocks remains the core choice for international capital? This article will analyze from three irreplaceable advantages.

Advantage 1: World's Best Corporate Resources and Shareholder Return Culture

The US stock market gathers the most innovative and profitable companies globally. From the Magnificent Seven (Apple, Microsoft, Amazon, Google, Nvidia, Tesla, Meta) to leaders in healthcare, finance, and consumer sectors, these companies generally have strong moats and continuously growing cash flows. In the first half of 2026, earnings per share (EPS) of S&P 500 constituents grew 8.4% year-over-year, exceeding expectations. More importantly, US companies have a long tradition of shareholder returns: in Q2 2026, S&P 500 companies announced a total of $350 billion in buyback plans and paid approximately $140 billion in dividends. This "buyback + dividend" cash return mechanism provides a stable cushion for long-term investors. Compared to other markets, many emerging market companies, while having high growth, still have imperfect corporate governance and shareholder return mechanisms, whereas the mature corporate culture of US stocks makes investment more predictable.

Advantage 2: Extreme Market Liquidity and Trading Freedom

The US stock market is the most liquid capital market globally. As of June 2026, the combined average daily trading volume of the New York Stock Exchange and Nasdaq exceeded $650 billion, nearly three times that of the A-share market and over ten times that of the Hong Kong market. This means investors can enter and exit the market at any time with very low bid-ask spreads, avoiding liquidity risk. Additionally, US stocks offer T+0 trading (requires account equity of $25,000 or a cash account) and no price limits, allowing professional investors to flexibly manage risk. For long-term buy-and-hold investors, low friction costs in the US market are particularly important: commissions at top brokers have dropped to zero, and the average ETF management fee is only about 0.20%. This highly efficient market provides a level playing field for all types of capital, from pension funds to individual retail investors.

Advantage 3: Diverse Investment Tools and Tax Optimization

The explosion of the US ETF market is a direct reflection of Advantage 3. From sector ETFs (e.g., technology, healthcare, energy) to factor ETFs (value, growth, momentum), from leveraged/inverse ETFs to thematic ETFs (artificial intelligence, clean energy, space economy), investors can find almost any desired risk exposure. Currently, there are over 3,000 US ETFs with total assets of $9 trillion, accounting for more than 70% of the global ETF market share. More critically, the tax policy of the US stock market is relatively friendly for non-US investors: when mainland Chinese investors buy US stocks, capital gains are tax-free, dividend tax is 10% (requires filing W-8BEN form), while dividend tax is higher when buying Hong Kong or A-shares. For example, investing in the same stock with a 3% dividend yield, the actual dividend received from US stocks is about 10 percentage points more than from Hong Kong stocks. Additionally, using US ETFs for global allocation can further diversify unsystematic risk.

Latest Developments and Investment Advice

On July 28, 2026, the Federal Reserve raised interest rates by 25 basis points to 5.75% as expected, but market expectations for a rate pause in September intensified. Under the expectation of peak rates, growth stocks and tech ETFs have once again become sought after. Data shows that in the past week, $28 billion flowed into US equity ETFs, with tech ETFs accounting for 40%. Combined with historical patterns, the end of a rate hike cycle is often the starting point for an acceleration of the US stock bull market. For beginners, it is recommended to start with index ETFs such as VOO (S&P 500 ETF) and QQQ (Nasdaq 100 ETF) to enjoy long-term compounding. For advanced investors, sector rotation strategies or quantitative ETFs can be used for enhancement. However, it should be noted that US stocks are not without risks: high valuations (S&P 500 P/E ratio around 23x), geopolitical shocks, and tightening liquidity could trigger pullbacks. Therefore, investors are advised to use dollar-cost averaging to diversify timing risk and maintain global diversification in asset portfolios.

In summary, the US stock market, with its three pillars of high-quality corporate groups, extreme liquidity, and abundant tools, has become an indispensable ballast stone for global asset allocation. Behind the $9 trillion ETF boom is global capital's vote with real money on the question "Why buy US stocks?"