Reported 8 months ago
Nvidia's substantial surge in 2024, reaching its 43rd record closing high and a return of nearly 175%, highlights a limitation for passive investors using mutual funds and ETFs as they are unable to fully benefit from such gains. The success of tech giants like Apple, Microsoft, and Nvidia has caused issues for ETFs due to regulations limiting the weight of individual stocks in funds. Nvidia's weighting in the Technology Select Sector SPDR Fund (XLK) is expected to increase significantly after the upcoming rebalance, impacting the investments of billions of dollars.
Source: YAHOO