ETFs
Want to Become an NVIDIA Shareholder? Buy These ETFs – July 12, 2024
- (0:30) – Can you get exposure to NVDA without owning the stock?
- (4:40) – Top ETFs to Watch Right Now
- (30:00) – Episode summary: NVDA, MAGS, NVDL, VGT, SMH
- Podcast@Zacks.com
Welcome to episode #408 of the Zacks Market Edge podcast.
Each week, host and Zacks Stock Strategist Tracey Ryniec will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how they impact your life.
This week, Neena Mishra, Director of Research at Zacks, joins the podcast to discuss ways investors can own NVIDIA (NVDA Quick QuoteNVDA – Free report) through ETFs. Sure, you could just buy NVIDIA stock. But some investors want more diversity.
You can get shares of NVIDIA with a basic S&P 500 ETF, but there are other ETFs where NVIDIA is more of a focus, including technology ETFs.
Which ETFs should investors consider?
4 ETFs That Hold NVIDIA: Should You Buy?
1. Roundhill Magnificent 7 ETF
ETF The Magnifique 7 (MAGS) Quick QuoteMAGS – Free report) owns only 7 stocks, including NVIDIA. MAGS is an equal-weight ETF with an expense ratio of 0.29%.
MAGS shares are up 42.3% year-to-date, while the S&P 500 is up just 18.1%.
Should you buy all Magnificent 7 shares, including NVIDIA, with MAGS?
2. GraniteShares 2x Long NVDA Daily ETF
The NVDA Daily 2x Long ETF (NVDL Quick Quote)NVDL – Free report) is exactly what its name implies. It’s a dual long-term NVIDIA ETF. It looks interesting on the upside, but it might not be as fun on the downside.
Shares of NVDL are up 122.1% year-to-date, but they’re not exactly a long-term holding. These dual-long ETFs are designed for short-term trading.
With an expense ratio of 1.15%, is NVDL the ETF if you want to make a big bet on NVIDIA?
3. Vanguard ETF for Information Technology
Vanguard Information Technology ETF (VGT) Quick QuoteVGT – Free report) is a large ETF with $87.6 billion in assets. VGT holds 321 stocks, but the top three stocks in the portfolio are three mega-cap technology stocks. NVIDIA is the third largest holding at 14% of the portfolio.
VGT is a lower-cost ETF with an expense ratio of just 0.1%. Shares have gained 23% year-to-date, outperforming the S&P 500, which is up 18.1%.
Is it too late to buy a tech ETF like VGT?
4. VanEck Semiconductor Exchange Traded Fund (ETF) (Quick Quote SMHSMH – Free report)
The VanEck Semiconductor ETF is a popular ETF if you want to own NVIDIA, as NVIDIA is its largest holding, at 20.2% of the portfolio.
SMH has gained 55% year-to-date, easily outperforming the S&P 500 at 18%. SMH has an expense ratio of 0.35%.
Should a semiconductor-only ETF like SMH be at the top of your list?
What else should you know about ETFs that hold NVIDIA?
Listen to this week’s video podcast to find out.