[Must-Read for New Investors] After a sharp US market sell-off, a rebound is here! Three handpicked ETF strategies to help you stay both offensive and defensive—even with limited capital!
Last Friday (June 5), US stocks just experienced a 'Black Friday.' Stronger-than-expected non-farm payroll data sparked fears of rate hikes, compounded by a brief shake in AI-related sentiment and profit-taking pressure, causing the Nasdaq to plunge sharply—Philadelphia Semiconductor Index tumbled over 10% in a single day.
However, market sentiment shifted lightning-fast. Just as investors were still reeling, US markets staged a sharp 'oversold rebound' on Monday night (June 8), delivering a powerful recovery. Overnight, the semiconductor sector showed remarkable resilience, $Micron Technology (MU.US)$ 、 $Intel (INTC.US)$ 、 $Marvell Technology (MRVL.US)$ with giants such as [names omitted] mounting a strong collective comeback. This roller-coaster ride—from steep sell-off to explosive rally—has left many investors both excited and anxious.
Given such extreme volatility, is it still appropriate to 'buy the dip' right now?
Although rapid rebounds driven by fresh capital inflows have occurred, investors should remain cautious about the risk of a 'bull trap' from an overly swift recovery. Rather than placing one-sided bets on individual stocks amid wild swings and living in constant anxiety, it’s better toadopt a 'research first, invest small, then scale gradually' strategy—using ETFs to gain instant exposure to industry leaders。
In light of current market conditions, we’ve compiled the following for youThree carefully selected ETF strategies,helping you achieve the perfect balance of offense and defense—even with limited capital:
1. Core U.S. Equity Exposure: Stable positioning, ideal for long-term monthly contributions as a foundational holding
– Selected holdings and value analysis: $Vanguard S&P 500 ETF (VOO.US)$、 $iShares Core S&P 500 ETF (IVV.US)$、 $SPDR S&P 500 ETF (SPY.US)$ Closely tracks the S&P 500 Index or the entire U.S. stock market, representing America's 500 most powerful large-cap companies. This includes global tech giants such as $Apple (AAPL.US)$ 、 $Microsoft (MSFT.US)$ , as well as consumer staples and healthcare leaders (e.g., $Johnson & Johnson (JNJ.US)$ 、 $Coca-Cola (KO.US)$ ）。
– Trading Strategy: ) that have demonstrated strong defensive capabilities during market downturns. Historical data shows broad-market indices possess significant long-term upward momentum. Ideal for 'dollar-cost averaging on dips' during sharp U.S. market volatility, serving as a core long-term investment to smooth out short-term turbulence.
2. Tech & Semiconductors: Capture the AI wave by strategically accumulating high-potential sectors on weakness (offensive allocation)
– Selected holdings and value analysis:
◦ $Invesco QQQ Trust (QQQ.US)$ Focuses on top Nasdaq tech giants, heavily weighted toward the 'Magnificent Seven' U.S. mega-cap stocks. These constituents boast robust cash flows and wide economic moats, and historically, QQQ has consistently shown strong recovery power and long-term resilience following major market selloffs.
◦ $VanEck Semiconductor ETF (SMH.US)$ Precisely tracks the top 25 semiconductor leaders, including NVIDIA and Taiwan Semiconductor. Semiconductors are the lifeblood of global technology, and recent short-term pullbacks have actually relieved valuation pressure.
◦ $Roundhill Memory ETF (DRAM.US)$ For investors seeking exposure to the latest AI hardware trends, consider the world’s first pure-play 'memory' ETF, which officially launched on April 1, 2026. This ETF strictly selects pure memory-related holdings with extremely high concentration in top names—Samsung, SK Hynix, and Micron Technology—all included, making it a precise tool for targeting the AI memory segment.
– Trading Strategy: Tech and chip sectors are experiencing heightened short-term volatility; if market sentiment wavers again or pulls back this week, it could present an ideal opportunity for medium- to long-term staged accumulation.
Screening methodology: Futubull app’s Index ETF section – Index ETFs, data as of 11:00 AM on June 9, 2026, sorted by assets under management (AUM) to select the top 4 broad-market ETFs (VOO, IVV, SPY, QQQ). The Semiconductor Index ETF is the largest by AUM among semiconductor-themed ETFs; DRAM is currently the only ETF exclusively investing in 'memory chips.'
3. Income-focused defensive plays: A new monthly dividend option – Covered Call ETF strategy (defensive side)
– Core investment value and mechanism:If concerned about the sharp volatility of tech stocks, beginners may also consider covered call income-generating ETFs. The core mechanism of these ETFs is that fund managers, while purchasing the underlying assets they track,sell call options on those underlying assets, generating very high dividend yields through the collection of option premiums.
– Advantages and suitable investor profile: The biggest advantage lies inMonthly dividend distributionIts dividend yield is relatively high, primarily due to differences in volatility, making it especially suitable for income-seeking investors who can tolerate some short-term fluctuations.
– Overview of Popular Hong Kong-listed Covered Call ETFs (based on recent data):
◦ Hang Seng China Enterprises Index:
Current latest dividend yield (LFY) stands at 18.1%, generally ranging between 7% and 18%
Has achieved consecutive monthly dividend distributions for 26 months
(Note: As of May 27, 2026; data sourced from GlobalX official website and Futubull app. This ETF was listed in February 2024 and does not include the June 4 dividend record.)
Current latest dividend yield (LFY) is 7.04%, generally hovering around7%–10% range, with a target annualized dividend yield of 22%
Has recorded a stable dividend payout for four consecutive months
(Note: As of May 27, 2026; data sourced from CSOP iShares official website and Futubull app. The ETF was listed in February 2024 and does not include the dividend record for June 4.)
◦ Hang Seng Index:
Current latest dividend yield (LFY) is 14.7%, generally ranging between 6% and 14%
Has recorded a stable dividend payout for 26 consecutive months
(Note: As of May 27, 2026; data sourced from Global X official website and Futubull app. The ETF was listed in February 2024 and does not include the dividend record for June 4.)
Current latest dividend yield (LFY) is 6.67%, generally ranging between 2% and 6%
Has recorded a stable dividend payout for 13 consecutive months
(Note: As of May 27, 2026; data sourced from Hang Seng Investment Management official website and Futubull app. The ETF was listed in February 2024 and does not include the dividend record for June 9.)
◦ Hang Seng Tech Index
Latest dividend yield (LFY) is 18.74%, roughly maintainedat around 7% to 18% level
Has recorded stable monthly dividends for 13 consecutive months
(Note: As of May 27, 2026, data sourced from GlobalX official website and Futubull app. This ETF was listed in March 2025 and does not include the dividend record for June 4.)
– Trading Strategy: The brilliance of this defensive strategy lies in the fact that even if the broader market trades sideways or experiences a mild decline, the substantial 'option premiums' can provide additional steady cash flow as a buffer, effectively smoothing portfolio volatility and achieving both capital preservation and income generation.
Note: ① Screening criteria: All Covered Call ETFs tracking Hong Kong stock indices on the Futubull app, as of June 2, 2026. ② Current dividend yield is for reference only and does not guarantee future payouts at this level. For the latest data, please check the Futubull app – Stock Screener.
💡Tips for beginners:
Blindly chasing rallies or panic-selling during sharp market drops is a major pitfall.Use broad-market ETFs as a foundation, tech stocks for offensive growth, and covered-call ETFs for income-based defense—building a resilient, long-term strategy that even small accounts can leverage for steady growth.
Open the app now and go to the [ETF Zone] to add the above instruments to your watchlist and track their performance. You can also take advantage of current market volatility to position yourself early and build market intuition. If you're still unsure where to start, our past articles provide step-by-step guidance >>【Must-read for beginners】Struggling to pick stocks? Afraid of falling into traps? Think entry costs are too high? Here’s a trick to capture an entire sector at a ‘great value price’!
Remember: Understand the rationale first, start with a small amount of capital, and buy in batches at lower levels—it’s a more effective way to gradually build your own ‘offense-and-defense-balanced’ investment portfolio!
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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