Reported 8 months ago
The State Street Technology Select Sector SPDR Fund, tracking the S&P Technology Select Sector Index, has Nvidia, Microsoft, and Apple as top holdings. Despite Nvidia exceeding Apple's market cap, the ETF's rebalancing rules cause Nvidia to have a lower current allocation. The ETF is expected to heavily buy Nvidia shares and sell Apple shares during the next rebalancing, posing risks. An alternative ETF, the Vanguard Information Technology ETF, offers more balanced positions and a strong performance history without the described rebalancing concerns.
Source: YAHOO