Big Reshuffle of $71 Billion ETF Looms as Nvidia Surpasses Apple

-- One of the world’s most prominent technology ETFs looks poised for a big rebalancing that would ramp up exposure to Nvidia Corp. at the expense of Apple Inc. – spurring billions of dollars in trading volume in one fell swoop.These Are the World’s Most Expensive Cities for Expats in 2024S&P 500 Races Toward 30th All-Time High of 2024: Markets Wrap

On that basis, Apple and Nvidia are set to reverse their positions in the ETF with the former’s weight dropping to 4.5% and the latter rising above 20%, according to calculations sent by the index provider to three market participants familiar with the matter. Matt Bartolini, head of SPDR Americas Research at State Street, said XLK will rebalance according to its rules and the methodology. The ETF is obliged to track the S&P benchmark that is designed to stay in compliance with the diversification regulations.S&P has left the door open to making an exception when it unveils sector weightings at the end of the month, judging by a document sent late last week and seen by Bloomberg News.

Any last-minute deviation from the public methodology would not be taken well by traders, who tend to take positions in anticipation of possible revisions in index rebalances like this. While it’s getting crowded, buying stocks that are entering major indexes and selling those that are exiting them has become one of the most reliable strategies for the hedge fund world.

This unique rule is why Nvidia has been massively under-owned by XLK, leading the fund to trail the traditional S&P 500 tech sub-index by more than 5 percentage points this quarter — the widest dispersion since 2001. ‘I’m counting on this income’: Single mom in NC faces squatter nightmare after Airbnb guests refuse to leaveHere's what investors should expect from Enbridge's dividend in 2024. The post How Much Will Enbridge Pay in Dividends This Year? appeared first on The Motley Fool Canada.FEATURE Nvidia stock was trading down slightly Monday. The chip maker has been getting more price-target upgrades on Wall Street. Nvidia shares fell 0.6% at $131.07 on Monday. The stock closed up 1.

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