Nvidia's Share Slide Has Taken a Toll on Semiconductor ETFs
Nvidia shares tumbled almost 9% last week after U.S. government officials announced more stringent curbs on exports of advanced AI chips to China, dragging down many technology-centric exchange-traded funds that are heavily exposed to the chipmaker.
The VanEck Semiconductor ETF, a $9.4 billion fund with almost 20% of its capital invested in Nvidia, fell more than 4% last week.The iShares Semiconductor ETF, an $8.7 billion fund with a 7.8% weight in Nvidia, lost a similar amount.
The Invesco QQQ Trust (QQQ), a broad-based tech-centered ETF tracking the return of the Nasdaq 100 Index, fell almost 3% last week. Nvidia is the fund's fourth-biggest holding, comprising just over 4% of its portfolio. The Vanguard Information Technology ETF (VGT), which holds a similar share of funds in Nvidia, fell over 3%.
While shares of Nvidia have fared poorly in recent days, their price has nearly tripled so far in 2023, making it the S&P 500's best-performing stock this year. $NVIDIA (NVDA.US)$ $VanEck Semiconductor ETF (SMH.US)$ $iShares Semiconductor ETF (SOXX.US)$ $Invesco QQQ Trust (QQQ.US)$ $Vanguard Information Technology ETF (VGT.US)$
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