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Key Takeaways
- Nvidia’s stock surged Thursday, a day after a Q4 earnings beat, driving ETFs holding the stock higher.
- Nvidia shares soared to an all-time high, pulling some ETFs such as iShares Semiconductor ETF (SOXX) to record highs as well.
- Two of the largest and most popular ETFs, Vanguard Total Stock Market (VTI) and SPDR S&P 500 ETF (SPY), have large Nvidia positions and saw gains as well.
Some of the largest and most popular exchange-traded funds (ETFs) exposed to Nvidia (NVDA) had a field day with the stock up 15% to a record on Thursday, a day after trouncing expectations for quarterly results yet again.
The No.1 artificial intelligence-linked company sees demand continuing to surge as it tripled revenue and increased profit by more than eight times from a year earlier. Nvidia shares had trended lower in anticipation of the earnings, but more than erased those losses after the numbers were reported, lifting up ETFs that have invested in the stock.
Popular ETFs that own large numbers of Nvidia shares, including Vanguard Total Stock Market ETF (VTI), SPDR S&P 500 ETF Trust (SPY) and iShares Core S&P 500 ETF (IVV), rose as Nvidia shares climbed. VTI, which owns more than 73 million Nvidia shares as its third-largest stock position, gained 1.9% on Thursday, while SPY 2.08% and IVV traded 2.06% higher.
| Popular ETFs that own a large number of Nvidia shares | ||||
|---|---|---|---|---|
| ETF | Number of shares (as of Feb. 21, 2024) | % of Total ETF Assets | Total ETF Assets (as of Feb. 21, 2024) | Today’s move |
| Vanguard Total Stock Market ETF | 73.75 M (as of Jan. 31, 2024) | 3.07% (as of Dec. 31, 2024) | $356.6 B (as of Jan. 31, 2024) | +1.9% |
| SPDR S&P 500 ETF Trust | 28.99 M | 3.98% | $489.1 B | +2.08% |
| iShares Core S&P 500 ETF | 25.54 M | 3.97% | $433.8 B | +2.06% |
Larger funds that own a lot of shares in one company may still have a relatively low exposure to it as a percentage of the total assets in their portfolio. However, ETFs that have a greater concentration of a particular stock among their holdings stand to gain or lose more due to a big price swing, depending on which direction the price moves.
Some big-name ETFs have a significant chunk of their portfolios invested in Nvidia shares. For example, VanEck Semiconductor ETF (SMH), which has $14.64 billion in assets, owns just 5.24 million Nvidia shares, but that’s its largest holding, accounting for more than 23% of its portfolio. The VanEck ETF was up more than 7% Thursday.
Nvidia is also the biggest position, at 1.66 million shares or 9.63% portfolio weight, for BlackRock’s $11.6 billion iShares Semiconductor ETF (SOXX). The ETF jumped over 5.3% to an all-time high of more than $642. Similarly, iShares Russell 1000 Growth ETF (IWF), with a 6% portfolio exposure to Nvidia, rose more than 3%.
| Popular ETFs with concentrated Nvidia positions | ||||
|---|---|---|---|---|
| ETF | Number of shares (as of Feb. 21, 2023) | % of Total ETF Assets | Total ETF Assets | Today’s move |
| VanEck Semiconductor ETF | 5.24 M | 23.64% | $14.64 B | +7.06% |
| iShares Semiconductor ETF | 1.66 M | 9.63% | $11.6 B | +5.39% |
| iShares Russell 1000 Growth ETF | 8.05 M | 6.37% | $85.2 B | +3.01% |