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Investment Solutions

Features

Investment Solutions

Features

US Share Trading: Popular Investment Themes

Rene Anthony

Tuesday, August 10, 2021

Tuesday, August 10, 2021

US share trading offers unparalleled access to some of the most-popular investment themes across financial markets. Here are five segments that have attracted wide interest in recent times.

US share trading offers unparalleled access to some of the most-popular investment themes across financial markets. Here are five segments that have attracted wide interest in recent times.

With the ASX representing less than 2% of all investment opportunities by global market capitalisation, there is a much larger world of opportunity for investors prepared to look beyond the local share market.

By way of its influence and status as the largest stock market in the world, US share trading has become an increasingly accessible option for Australian investors, including Selfwealth flat-fee brokerage platform

What more, the appeal of a number of popular investment themes has resonated with many investors eyeing exposure to opportunities that may not be available on the local market. Technology and innovation have been central to much of this interest, but there are specific areas investors have sought exposure via US share trading. 

Here are five popular investment themes associated with US share trading.

1. Cloud computing

The cloud computing segment has seen some of the fastest growth of any technology segment, with a number of companies focusing on this space as means to improve efficiency in our workplaces, not to mention, our day-to-day lives.

Today the segment has grown to incorporate a number of different areas, making it integral in the broader deployment of technology throughout the world. Whether it be servers, storage, communication, software, analytics, networking, computing services, or any number of other areas, the shift has been accelerated amid a growing work-from-home theme.

US share trading provides access to companies in this space like Cloudfare (NYSE: NET), Twilio (NYSE: TWLO), Dropbox (NASDAQ: DBX) and Fastly (NYSE: FSLY), to name a few of the many interdisciplinary stocks embracing cloud computing, and that without mentioning well-known giants such as Microsoft and Amazon.

2. Cyber security 

According to Grand View Research, the global cyber security market was valued at US$167.13 billion last calendar year, and it is expected to register a CAGR of 10.9% from 2021 to 2028. 

It no surprise then that a number of cyber security stocks are listed on the US stock market, with investors turning to US share trading to provide exposure to this increasingly important sector. 

After all, the sophistication of cyber attacks continues to evolve, prompting businesses to increase spending in this area. Meanwhile, the shift towards remote working, with greater reliance on cloud computing and the Internet of Things (IoT) to manage critical data, has increased the risk of cyber threats for organisations in a wide assortment of industries.

Investors can invest in a number of companies via Selfwealth US share trading platform. Examples include but are not limited to Zscaler (NASDAQ: ZS), Palo Alto Networks (NYSE: PANW), Okta (NASDAQ: OKTA), CrowdStrike Holdings (NASDAQ: CRWD), SentinelOne (NYSE: S), Mimecast (NASDAQ: MIME), and Fortinet (NASDAQ: FTNT).

3. Electric vehicles

As the world eyes a transition to more renewable forms of energy, global policy-makers have cars in their sights. Mandates are sweeping the world targeting the phasing out of internal combustion engine cars, and the promotion and uptake of electric vehicles.

In the US, President Biden recently signed an executive order that will target electric vehicle sales representing 50% of all new car sales by 2030. The rush is certainly on as car manufacturers look to pivot to new technology.

Tesla (NASDAQ: TSLA) might be the most well-known company operating in this space, with what some might say is a first-mover advantage. However, other companies are quickly following suit. US share trading has proven popular for investors to invest in stocks such as Nio (NYSE: NIO), Xpeng (NYSE: XPEV), Li Auto (NASDAQ: LI) and Lucid Group (NASDAQ: LCID)

4. Mega tech

They are household names that we use almost every day, and arguably, whose products we understand better than any other company we typically invest in.

The FAANG stocks, including Facebook (NASDAQ: FB), Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), Netflix (NASDAQ: NFLX) and Alphabet (NASDAQ: GOOGL) have been instrumental over the years in driving returns of the broader stock market. Add in the likes of Microsoft (NASDAQ: MSFT), and these pioneers have earned their enormous valuations thanks to their global reach and innovative pedigree.

What more, the pandemic has been a tailwind for each of these companies in some form or another, with remote work, online shopping and digital consumption of media all a positive factor. On the back of this, each comapny has delivered blowout results each earnings period, with their stock prices hitting heights that would have seemed unimaginable just a few years ago. If you want to invest directly in the world largest companies, US share trading is the means to do just that.

5. Semiconductors

Few other issues have gained as much publicity in the technology and manufacturing space over the last year as semiconductors, with a global shortage wreaking havoc on a number of supply chains across various industries. 

From computers to smartphones, gaming consoles, gadgets and even the latest vehicles, semiconductors have become hot property in 2021. Unparalleled demand for electronics in the midst of lockdowns, as well as outsourcing of chip production has created an imbalance that is leading to manufacturing delays across a range of products.

Between semiconductor designers, manufacturers and foundries that mass-produce electronic chips, US share trading provides access to a number of companies in this industry. Names include Advanced Micro Devices (NASDAQ: AMD), Nvidia (NASDAQ: NVDA), Taiwan Semiconductor Manufacturing (NYSE: TSM), Micron Technology (NASDAQ: MU), Qualcomm (NASDAQ: QCOM), Intel (NASDAQ: INTC), NXP Semiconductors (NASDAQ: NXPI) and Broadcom (NASDAQ: AVGO).

How do I open a US share trading account?

If you already have an active Selfwealth ASX trading account, then you can refer to our comprehensive 'how-to' guide. for step-by-step instructions on how to open a US share trading account. This is done within the settings of your current ASX account.

If, however, you are new to Selfwealth, you will need apply for an ASX trading account before you can open a US share trading account. In order to do this, you must be a current Australian Tax Resident, and you must submit an Australian Tax File Number (TFN) as part of your ASX trading account.

Make the most of a whole new world of investment opportunities by opening a US share trading account today! If you have any questions, please visit help.selfwealth.com.au for a quick answer.If you want to talk to us directly, you can get us on live chat during trading hours or email us at support@selfwealth.com.au.

Important disclaimer: SelfWealth Ltd ABN 52 154 324 428 (“Selfwealth”) (AFSL 421789). The information contained on this website is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser and/or accountant. Taxation, legal and other matters referred to on this website are of a general nature only and should not be relied upon in place of appropriate professional advice. You should obtain the relevant Product Disclosure Statement for any product mentioned and consider its contents before making any decision.