##  [# You Owe Your S&P 500 Gains to Nvidia](/sections/features/you-owe-your-sp-500-gains-nvidia) 

 

# You Owe Your S&P 500 Gains to Nvidia

 

 

NVDA accounts for a third of this year’s return in the index.



 

 

 

 

 [![sumit](/sites/default/files/styles/author_image_icon/public/2023-03/Sumit_0.png?itok=SO-7S5SH "sumit")](/authors/sumit-roy) 

[By Sumit Roy ](/authors/sumit-roy)

 Mar 11, 2024

 Edited by: James Rubin

 

 

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If you own the [**SPDR S&amp;P 500 ETF Trust (SPY)**](https://www.etf.com/SPY) you owe nearly a third of your gains to one stock.

Of SPY’s 8.4% return so far this year, 2.7 of those percentage points come from Nvidia’s 87% surge. That means that a single stock accounts for around a third of the S&amp;P 500’s gain.

While certainly an eyebrow-raising statistic, it’s not unprecedented to see a single stock drive so much of the index’s return.

In 2023, Microsoft accounted for 3.4 percentage points of the S&amp;P 500’s 26.2% return. In 2021, the same stock accounted for 2.8 percentage points of the index’s 28.7% return.

Meanwhile, in 2020 and 2019, Apple contributed 3.9 and 2.8 percentage points, respectively, to the S&amp;P 500’s 18.4% and 31.3% returns.

That single stocks have accounted for so much of the S&amp;P 500’s performance in recent years reflects the huge weightings that these stocks have in the index.

When a stock represents 5% of the index, just a 10% move in either direction can drive a half a percentage point change in the level of the index.

When those same stocks move 20%, 30%, or even more as they’ve done in recent years, the impact can be much larger.

## NVDA Stock Risk, S&amp;P 500 Weighting

There’s been a lot of talk about the parabolic ascent of Nvidia and how it’s a risk to the market given how the stock represents over 5% of the S&amp;P 500.

While a Nvidia crash could certainly have broader implications for the stock market by bringing down other tech stocks, on its own, even a halving of Nvidia would only shave roughly 2.5 percentage points off the S&amp;P 500.

That’s not small by any means, but it’s also something that—if it were to happen—probably wouldn’t take place overnight, giving other stocks an opportunity to compensate for it.

 
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 [ Sumit Roy Senior ETF Analyst ](/authors/sumit-roy) 

 

 

  Sumit Roy is the senior ETF analyst for etf.com and author of (Don't) Invest Like a Pro. He creates a variety of content for the platform, including…   [View Bio](/authors/sumit-roy)

 



 

 


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