ETFs
Want to Own NVIDIA? Buy These ETFs
-
(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) via 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
The Magnificent 7 ETF MAGS holds 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 NVDL 2x Long NVDA Daily ETF is exactly what its name implies. It’s a double-long 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
The Vanguard Information Technology ETF VGT 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 (SMH)
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?
The story continues
What else should you know about ETFs that hold NVIDIA?
Listen to this week’s video podcast to find out.
Want to know the latest recommendations from Zacks Investment Research? Download the 7 Best Stocks for the Next 30 Days today. Click to get this free report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
VanEck Semiconductor ETF (SMH): ETF Research Reports
Vanguard Information Technology (VGT) ETF: ETF Research Reports
Roundhill Magnificent Seven ETF (MAGS): ETF Research Reports
GraniteShares 2x Long NVDA Daily ETF (NVDL) : ETF Research Reports