ETFs Hold Big Positions in Hot Stock Nvidia

Nvidia is arguably the hottest stock on the market today. The company is at the center of the boom in artificial intelligence thanks to its position as the world’s largest producer of graphics processing units (chips that enable the complex computations that are needed for AI and machine learning applications).  

Nvidia is a fabless chip company, which means it designs its chips but doesn’t manufacture them.  

Shares are up a whopping 114% so far this year and are on the cusp of surpassing their all-time highs from late 2021. 

But you don’t have to own Nvidia stock directly to benefit from its ascent. With a $776 billion market cap, the stock is the fifth-largest holding in broad market exchange-traded funds like the SPDR S&P 500 ETF Trust (SPY). 

SPY has about a 2% weighting in the stock. 

For many other ETFs—such as sector and industry funds—Nvidia’s weighting is even greater. The Vanguard Information Technology ETF (VGT) holds 8% of its portfolio in Nvidia, while the iShares Semiconductor ETF (SOXX) has a 10% position in the name. 
Nvidia is also a popular holding for thematic ETFs, like those investing in the metaverse, artificial intelligence, gaming and autonomous vehicles. 

The Roundhill Ball Metaverse ETF (METV), the Global X Robotics & Artificial Intelligence ETF (BOTZ), the VanEck Video Gaming and eSports ETF (ESPO) and the Global X Autonomous & Electric Vehicles ETF (DRIV) have 5% to 10% of their portfolios invested in Nvidia stock. 

The three ETFs with the largest weightings in Nvidia are the ProShares Ultra Semiconductors (USD), with 22%; the VanEck Semiconductor ETF (SMH), with 15%; and the AXS Esoterica NextG Economy ETF (WUGI), with 14%.  

Check out etf.com’s Stock Finder tool for a full list of ETFs that hold Nvidia.  

Contact Sumit Roy at [email protected]