Nvidia (NVDA) has been a standout performer in the stock market, achieving impressive gains, but even the best stocks can face setbacks. Following its latest earnings report, Nvidia's stock has experienced a pullback, now trading around $117.59. Over the past 52 weeks, the stock has fluctuated between $39.23 and $140.76, reflecting its strong rise driven by the AI boom while also highlighting the inherent volatility in its journey.
Despite the dip, Nvidia remains highly valued, trading at more than 38 times its sales, which can make buying the stock outright a steep investment. For those looking to gain exposure to Nvidia without holding the stock directly, exchange-traded funds (ETFs) provide a diversified way to invest. Below, we explore two ETFs that offer substantial Nvidia exposure alongside other leading stocks.
A Rising Tide for Chipmakers: Invesco PHLX Semiconductor ETF (SOXQ)
Nvidia is a key player in the semiconductor market, particularly with the surge in artificial intelligence (AI) investments, but itâs not the only company benefiting. The Invesco PHLX Semiconductor ETF (SOXQ) offers a way to invest in Nvidia while also gaining exposure to the broader chipmaking industry.
Why This ETF Stands Out:
Current Price and 52-Week Range: The ETF is currently priced at $40,54, with a 52-week range between $24.82 and $46.82, demonstrating solid performance with room for potential growth.
Low Fees: With an expense ratio of just 0.19%, this ETF is one of the most affordable options in the semiconductor sector, providing great value for investors.
Focused Portfolio: The ETF holds 30 semiconductor stocks, including major players like Nvidia (14% of the fund), Broadcom (AVGO), AMD (AMD), Taiwan Semiconductor Manufacturing (TSM), and Texas Instruments (TXN). It also includes a mix of smaller and mid-cap companies, adding diversity and broader exposure.
This ETF is ideal for investors who are bullish on the entire semiconductor industry and want a more diversified approach rather than investing solely in Nvidia.
More Than Just Nvidia: Tech Giants Facing Pullbacks
While Nvidiaâs recent dip has drawn attention, it's not the only tech giant seeing a downturn. The "Magnificent Seven" â a group of leading tech companies â have also experienced declines. Despite the S&P 500 being near its all-time highs, many of these tech stocks are trading below their 52-week highs.
Magnificent Seven Latest Performance:
Company (Symbol) % Below 52-Week High
Nvidia (NVDA) 10.4%
Alphabet (GOOGL/GOOG) 13.7%
Apple (AAPL) 1%
Meta Platforms (META) 2.9%
Microsoft (MSFT) 10.2%
Tesla (TSLA) 23%
Amazon.com (AMZN) 13%
These stocks arenât exactly cheap, but they still offer significant growth potential. If you believe these tech giants will continue to thrive, the Roundhill Magnificent Seven ETF (MAGS) provides equal exposure to all seven companies, including Nvidia, with an expense ratio of 0.29%. Currently priced at around $31.45, this ETF has a 52-week range from $25.31 to $34.92, making it a balanced way to invest in these major tech players.
Choosing the Best ETF for Your Investment Goals
Both ETFs provide a way to invest in Nvidia alongside other leading companies, offering diversification and potentially lower risk than individual stocks. The best choice depends on your specific investment goals: whether you want focused exposure to the semiconductor sector or a broader investment in the top tech companies. If youâre interested in taking advantage of Nvidiaâs dip without making a big commitment, these ETFs could be a strategic fit for your portfolio.
Final Thoughts: Is Now the Time to Invest?
Before investing in the Invesco PHLX Semiconductor ETF or the Roundhill Magnificent Seven ETF, consider your financial goals and risk tolerance. These ETFs offer a diversified approach to investing in Nvidia and other top-performing stocks, allowing you to participate in the marketâs growth without the concentrated risk of individual investments. The recent pullbacks in these stocks could present an opportunity, but always align your investments with your long-term strategy and comfort level. Investing in a diversified way can be a smart move, especially in times of market volatility.
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