Understanding ETF exposures when it comes to Nvidia
August 28, 2024
Options traders are anticipating Nvidia's (NVDA) earnings results to swing the stock nearly 10% in either direction, a move that could draw down or raise up markets (^DJI, ^IXIC, ^GSPC) along with the chipmaker. BNY Mellon global head of ETFs Ben Slavin joins Brad Smith in-studio to talk about the ETFs that could also be swayed through their exposures to Nvidia and the AI chip trade: "One thing that's very important for investors really to understand is what those weights are in the ETFs they hold. Obviously, Nvidia, given the big run-up in the stock, is a significant weight in not just the S&P but a wide variety, several hundred ETFs that hold the stock. And so obviously, depending on which way things go here, you're going to see a big impact, and those ETFs are going to move." Slavin notes the gains actively managed ETFs have seen over passively managed funds. He also notes that a major risk more investors are reconsidering is their concentration in any big stock, namely the Magnificent Seven tech names., For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Luke Carberry Mogan. Follow along with Yahoo Finance's latest coverage of Nvidia ahead of its earnings this week: Nvidia earnings are almost here. What investors will look forWhy Nvidia's stock rally is not driving broader market gainsNvidia earnings highlight a busy end of August: What to know this weekThese are other AI plays as Nvidia positions itself as 'hub'Nvidia is 'priced for perfection.' Strategist explains whyIf you don't own Nvidia stock, you are missing a revolution, tech investor saysNvidia earnings: One top tech analyst's key metric to watchNvidia gets ready to take over the stock market (again)Nvidia earnings: Rationality is out the window, analyst saysNvidia vs. Alphabet: Strategist picks which to buy & avoidNvidia investing 'aggressively' in R&D: Analyst explains whyNvidia earnings: Options market predicting $300 billion swing in stockNvidia still the best AI chip play right now: AnalystNvidia earnings: What the options market is anticipating4 AI terms Nvidia investors should knowNvidia earnings 'absolutely key to the AI infrastructure trade' Read More...
Options traders are anticipating Nvidia’s (NVDA) earnings results to swing the stock nearly 10% in either direction, a move that could draw down or raise up markets (^DJI, ^IXIC, ^GSPC) along with the chipmaker. BNY Mellon global head of ETFs Ben Slavin joins Brad Smith in-studio to talk about the ETFs that could also be swayed through their exposures to Nvidia and the AI chip trade:
“One thing that’s very important for investors really to understand is what those weights are in the ETFs they hold. Obviously, Nvidia, given the big run-up in the stock, is a significant weight in not just the S&P but a wide variety, several hundred ETFs that hold the stock. And so obviously, depending on which way things go here, you’re going to see a big impact, and those ETFs are going to move.”
Slavin notes the gains actively managed ETFs have seen over passively managed funds. He also notes that a major risk more investors are reconsidering is their concentration in any big stock, namely the Magnificent Seven tech names.,
For more expert insight and the latest market action, click here to watch this full episode of Wealth!
