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NVIDIA shares influence the performance of many ETFs: goldmine or risk factor?
Many investors also rely on ETFs for their investments because they can add a whole basket of stocks to their portfolio via the exchange-traded index funds and thus diversify it. However, the performance of many ETFs often only depends on a large value contained in them. For example, NVIDIA shares have a major influence on the performance of semiconductor ETFs, but also on that of broader tech ETFs. Advantageous over the course of the year, but recently a small setback According to a report from www.finanzen.net, many ETFs are heavily dependent on the performance of NVIDIA shares. This heavy weighting can be beneficial if NVIDIA stock is good...
NVIDIA shares influence the performance of many ETFs: goldmine or risk factor?
Im Jahresverlauf vorteilhaft, kürzlich aber kleiner Rückschlag
According to a report by www.finanzen.net, many ETFs are heavily dependent on the performance of NVIDIA shares. This heavy weighting can be both beneficial when NVIDIA stock is doing well and detrimental when there are losses. An example of such a setback occurred in mid-October, when NVIDIA stock fell in value due to new restrictions on exporting its chips to China. These price losses dragged down numerous ETFs with a high NVIDIA weighting.
NVIDIA stock is represented in many different ETFs, particularly those focused on semiconductors, metaverse, and artificial intelligence (AI). It is also one of the major tech stocks that significantly influences the NASDAQ 100, the MSCI World Information Technology Index and the S&P 500. The high weight of NVIDIA stock in these ETFs is due to its high market capitalization and market value of over $1 trillion.
Some of the ETFs with a heavy NVIDIA weighting include Amundi MSCI Semiconductors ESG Screened UCITS ETF, Global X Robotics & Artificial Intelligence ETF, Invesco S&P World Information Technology ESG ETF, Amundi S&P Global Information Technology ESG ETF and various iShares ETFs. NVIDIA stock also has a significant portion of the VanEck Semiconductor ETF and the HSBC NASDAQ Global Semiconductor ETF.
From an investor perspective, it is important to be aware of which ETFs NVIDIA's performance plays a crucial role. While this hasn't had much downside so far, as NVIDIA's share price has risen sharply this year, relying on the performance of any one company remains subject to risks.
Source: www.finanzen.net
Read the source article at www.finanzen.net