Nvidia’s (NVDA) weighting in the index that the Technology Select Sector SPDR (XLK) exchange-traded fund follows will likely increase to around 21%, displacing Apple (AAPL) as the second top pick next to Microsoft (MSFT), CNBC reported Monday.
Apple’s weighting will drop significantly to 4.5% from about 22% while Nvidia is set to rise sharply from just 6% amid Nvidia shares’ outperformance this year, the report said, citing Matthew Bartolini, head of SPDR Americas Research.
The major technology ETF will be forced to acquire more than $10 billion worth of Nvidia shares while cutting back dramatically on Apple, the report said.
SPDR does not comment on specific trading strategies around rebalances, the report said.