State Street Technology ETF To Put Nvidia Before Apple In Revamp
Portfolio Pulse from Michael Juliano
State Street Capital Advisors plans to revamp its Technology Select Sector SPDR Fund (XLK) by increasing exposure to Nvidia (NVDA) and reducing exposure to Apple (AAPL). This change will involve buying $11 billion of Nvidia shares and selling $12 billion of Apple shares, significantly altering the ETF's composition.
June 17, 2024 | 9:50 pm
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NEGATIVE IMPACT
State Street's XLK ETF will reduce its exposure to Apple by selling $12 billion worth of shares, dropping Apple's weight in the ETF to 4.5%.
The significant sale of Apple shares by a major ETF like XLK is likely to increase supply and negatively impact Apple's stock price in the short term.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
State Street's XLK ETF will increase its exposure to Nvidia by buying $11 billion worth of shares, raising Nvidia's weight in the ETF to over 20%.
The significant purchase of Nvidia shares by a major ETF like XLK is likely to drive up demand and positively impact Nvidia's stock price in the short term.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
State Street's Technology Select Sector SPDR Fund (XLK) will undergo a major overhaul, increasing exposure to Nvidia and reducing exposure to Apple.
The rebalancing of XLK to increase Nvidia exposure and reduce Apple exposure is likely to attract investor interest and potentially drive up the ETF's price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100