Nvidia Eclipsing Apple Threatens Radical Shakeup of $67 Billion ETF
- XLK fund investors have missed out by not owning enough Nvidia
- Chipmaker’s weight could jump above 20% from 6% in rebalance
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One of the world’s biggest tech ETFs looks poised for a shake-up after Nvidia Corp. catapulted past Apple Inc. in size.
Thanks to diversification rules, the $67 billion Technology Select Sector SPDR Fund (ticker XLK) has held way fewer Nvidia shares for months now while the AI giant continues to soar. Currently, the chipmaker makes up roughly 6% of the fund’s assets, compared with 21% for the S&P 500 Information Technology Index — spurring XLK to underperform big time this year.