The week before Labor Day is usually a slow one. This one likely won’t be, though, with Nvidia set to report results after the close today. The high-flying stock is a constituent for nearly 700 ETFs, according to VettaFi. There are 440 funds with a top-15 position in the semiconductor giant.
Which ETFs Own a Lot of Nvidia?
Some of this is due to discretionary decisions made by active management. However, the meteoric rise in the stock in 2024 has caused it to have a significant influence on many index funds. As of August 23, NVDA was up over 160% in value for the year. While it was slightly off its early summer highs, the stock recovered in August.
The Van Eck Semiconductor ETF (SMH ) and the Technology Select Sector SPDR (XLK ) had 20%+ weightings in the company. Meanwhile, the Fidelity MSCI Information Technology ETF (FTEC ), the iShares Global Tech ETF (IXN ) and the Vanguard Information Technology ETF (VGT ) had between 14% and 17% stakes in the semiconductor company.
Apple and Microsoft provide some diversification to investors in the broader technology sector ETFs. Meanwhile, Taiwan Semiconductor is SMH’s second largest position, representing 13% of assets.
What Does the Earnings Picture Look Like?
According to research from Wall Street Horizon, a TMX company, Nvidia’s earnings are expected to triple to $0.63 per share, from a year earlier. The company has beaten earnings expectations in the previous six calendar quarters. Yet, Wall Street Horizon noted there have been reports that the next generation AI chips could be delayed. This could impact future earnings. https://www.wallstreethorizon.com/blog/Nvidia-Earnings-in-Focus-Chips-Stocks-Chopping-Around
Many Active ETF Managers Loved Nvidia Heading into EPS
There are many active ETFs with a double-digit weighting in Nvidia, based on the latest available data. American Century Focused Dynamic Growth (FDG ), the BlackRock Large Cap Growth (BGRO ), Fidelity Blue Chip Growth FBCG),, and T. Rowe Price Blue Chip Growth (TCHP ) all had 12% or more invested in the stock.
This was a slight overweight the semiconductor company recently had in the Russell 1000 Growth index used by many of these active ETFs. Given the strong gains achieved this year, some of these active managers might adjust their portfolios if the fundamentals show signs of weakening.
There are other active large-cap equity ETFs such as the Touchstone US Large Cap Focused ETF (LCF ) that was recently underexposed to Nvidia. LCF recently had a 4% stake in the company.
While the eyes of many stock investors are on Nvidia later today, the $3 trillion market cap company plays a big role for ETFs investors alike.
For more news, information, and analysis, visit VettaFi | ETFDB.
