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Want to Own NVIDIA? Buy These ETFs

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  • (0:30) - Can You Gain Exposure To NVDA Without Owning The Stock?
  • (4:40) - Top ETFs To Keep On Your Radar Right Now
  • (30:00) - Episode Roundup: NVDA, MAGS, NVDL, VGT, SMH
  • Podcast@Zacks.com

 

Welcome to Episode #408 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.

This week, Neena Mishra, Zacks Director of Research, joins the podcast to discuss the ways investors can own NVIDIA (NVDA - Free Report) through ETFs. Obviously, you could just buy NVIDIA, the stock. But some investors want more diversity.

You could get shares of NVIDIA with a basic S&P 500 ETF but there are other ETFs where NVIDIA is more of a focus, including technology ETFs.

Which ETFs should investors consider?

4 ETFs that Hold NVIDIA: Should You Buy?

1.      Roundhill Magnificent 7 ETF

The Magnificent 7 ETF (MAGS - Free Report) holds just 7 stocks, with NVIDIA among them. MAGS is an equal weight ETF with an expense ratio of 0.29%.

Shares of MAGS are up 42.3% year-to-date with the S&P 500 up just 18.1%.

Should you buy all of the Magnificent 7 stocks, including NVIDIA, with MAGS?

2.      GraniteShares 2x Long NVDA Daily ETF

The 2x Long NVDA Daily ETF (NVDL - Free Report) is just what it sounds like. It’s a double long NVIDIA ETF. Sounds great on the way up, but might not be so fun on the way down.

Shares of NVDL are up 122.1% year-to-date but it shouldn’t really be held for long periods. These double long ETFs are designed for short-term trading.

With an expense ratio of 1.15%, is NVDL the ETF if you want to make a big bet on NVIDIA?

3.      Vanguard Information Technology ETF

Vanguard Information Technology ETF (VGT - Free Report) is a large ETF with $87.6 billion in assets. VGT holds 321 stocks but the top 3 stocks in the portfolio are three mega-cap technology stocks. NVIDIA is the third largest holding at 14% of the portfolio.

VGT is a lower cost ETF with an expense ratio of just 0.1%. Shares have gained 23% year-to-date which is outperforming the S&P 500, up 18.1%.

Is it too late to buy into a technology ETF like VGT?

4.      VanEck Semiconductor ETF (SMH - Free Report)

VanEck Semiconductor ETF is a popular ETF if you want to own NVIDIA because NVIDIA is its largest holding, at 20.2% of the portfolio.

SMH has gained 55% year-to-date, easily beating the S&P 500 at 18%. SMH has an expense ratio of 0.35%.

Should an ETF that focuses on the semiconductors exclusively, like SMH, be at the top of your list?

What else do you need to know about ETFs that own NVIDIA?

Tune into this week’s video podcast to find out.


See More Zacks Research for These Tickers


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NVIDIA Corporation (NVDA) - free report >>

VanEck Semiconductor ETF (SMH) - free report >>

Vanguard Information Technology ETF (VGT) - free report >>

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