The Best ETFs with Nvidia Stocks in 2024
Introducing our list of the best ETFs with Nvidia stocks, offering different options for investors with varying risk preferences and investment perspectives.
1. Conservative Option: iShares Core S&P 500 ETF (IVV) – Add Nvidia exposure to your portfolio in a conservative way
ETFs tracking the S&P 500 index are fundamental for long-term, passive investment strategies, providing broad exposure to major US companies. This includes Nvidia, which was the sixth largest company in the world by market capitalization in January 2024.
Among the diverse range of S&P 500-focused ETFs, we have chosen the BlackRock iShares S&P 500 ETF. It is the second largest ETF in the world with over $420 billion in assets. With a low expense ratio of just 0.03%, it is one of the most cost-effective options available in the market.
As of the time of writing, Nvidia stocks accounted for the fourth largest investment in the IVV ETF, representing approximately 2.95% of the fund’s total weight.
– Name and symbol: iShares Core S&P 500 ETF (IVV)
– Expense ratio: 0.03%
– AUM (January 2024): $420 billion
– Nvidia weight (January 2024): 2.95%
2. Nasdaq-100 Tracker: Invesco QQQ Trust Series I (QQQ) – ETF following the Nasdaq-100 index
Invesco QQQ Trust Series I (QQQ) is a leading ETF tracking the Nasdaq-100 index, which includes 101 non-financial companies listed on the Nasdaq stock exchange. This ETF has a competitive expense ratio of 0.20%.
Unlike the S&P 500, the Nasdaq-100 index is heavily weighted towards technology companies and tends to exhibit greater volatility. While the S&P 500 is often preferred for long-term, passive investing, Nasdaq-100-based ETFs like QQQ offer an attractive option for investors optimistic about the US technology sector in the long run.
At the time of writing, Nvidia ranked 4th in terms of shareholding in the QQQ ETF, accounting for approximately 4.48% of the fund’s total weight. Investing in ETFs like QQQ provides greater exposure to Nvidia compared to S&P 500 ETFs.
– Name and symbol: Invesco QQQ Trust Series I (QQQ)
– Expense ratio: 0.20%
– AUM (January 2024): $246 billion
– Nvidia weight (January 2024): 4.48%
3. Actively Managed Growth ETF: Fidelity Growth Opportunities ETF (FGRO) – Actively managed ETF investing in growth stocks
Fidelity Growth Opportunities ETF (FGRO) is an actively managed, semi-transparent ETF that aims to outperform the Russell 1000 Growth index. The fund selects investments based on fundamental analysis and broader economic conditions.
Semi-transparent ETFs, like FGRO, disclose their holdings with a delay. At the time of the latest information, Nvidia ranked second among the fund’s largest holdings with a weight of 7.86%. The largest holding of FGRO was Microsoft, accounting for 10.61% of the fund’s assets.
As an actively managed fund, FGRO has a relatively high expense ratio of 0.59%. However, if you are seeking an actively managed ETF with significant exposure to Nvidia, it may be worth considering.
– Name and symbol: Fidelity Growth Opportunities ETF (FGRO)
– Expense ratio: 0.59%
– AUM (January 2024): $245 million
– Nvidia weight (January 2024): 7.86%
4. Semiconductor Sector ETF: VanEck Semiconductor ETF (SMH) – ETF with substantial exposure to Nvidia in the semiconductor sector
VanEck Semiconductor ETF (SMH) is a popular ETF that tracks the MVIS US Listed Semiconductor 25 index.
The ETF significantly invests in Nvidia, as it represents 22.3% of the fund’s holdings at the time of writing. The second largest holding in the SMH ETF is Taiwanese Semiconductor Manufacturing Company, with a weight of 9.47%.
If you are optimistic about the global semiconductor sector and desire substantial exposure to Nvidia, SMH is a good choice. This ETF has attracted a lot of investor interest with assets worth over $13 billion. However, it’s important to note that the ETF holds shares of only 25 different companies, which means it is not the strongest option in terms of diversification.
– Name and symbol: VanEck Semiconductor ETF (SMH)
– Expense ratio: 0.35%
– AUM: $13.2 billion
– Nvidia weight (January 2024): 22.3%
5. Robotics & Artificial Intelligence ETF: Global X Robotics & Artificial Intelligence ETF (BOTZ) – ETF for investors seeking exposure to cutting-edge technologies
While Nvidia has been a strong performer over the past decade, its stocks began to soar rapidly towards the end of 2022 when the public listing of the OpenAI chatbot Chat GPT created increased interest in artificial intelligence, where Nvidia hardware is extensively used.
Global X Robotics & Artificial Intelligence ETF (BOTZ) is designed to track the Indxx Global Robotics &
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