A Leading Tech ETF Is Shifting The Balance From Apple To Nvidia With A Massive $23 Billion Stake Exchange As Nvidia's Stock Skyrockets By 164%
Portfolio Pulse from Zaheer Anwari
A major technology ETF is rebalancing its portfolio, significantly increasing its holdings in Nvidia (NASDAQ: NVDA) from 6% to 21% while reducing its stake in Apple (NASDAQ: AAPL) from 22% to 4.5%. This involves purchasing $11 billion worth of Nvidia shares and selling $12 billion worth of Apple shares. Nvidia's stock has surged 164% year-to-date, but potential volatility is anticipated.
June 18, 2024 | 5:39 pm
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NEGATIVE IMPACT
The ETF's rebalancing will reduce Apple's holdings from 22% to 4.5%, involving the sale of $12 billion worth of Apple shares. This could exert downward pressure on Apple's stock price in the short term.
The ETF's significant reduction in Apple holdings and the $12 billion sale will likely increase supply of Apple shares, negatively impacting its stock price in the short term.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 100
POSITIVE IMPACT
The ETF's rebalancing will increase Nvidia's holdings from 6% to 21%, reflecting its 164% YTD stock surge. This involves purchasing $11 billion worth of Nvidia shares, potentially boosting its stock price in the short term.
The ETF's significant increase in Nvidia holdings and the $11 billion purchase will likely drive up demand for Nvidia shares, positively impacting its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100