{"id":48838,"date":"2026-11-12T20:01:05","date_gmt":"2026-11-12T20:01:05","guid":{"rendered":"https:\/\/financialrush.com\/?p=48838"},"modified":"2026-11-12T20:01:05","modified_gmt":"2026-11-12T20:01:05","slug":"nvidia-stock-drop-isnt-big-deal-for-many-etf-mutual-fund-investors","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=48838","title":{"rendered":"Nvidia stock drop isn&#8217;t big deal for many ETF, mutual fund investors"},"content":{"rendered":"<p> \n<\/p>\n<div>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-108549797\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>BERLIN, GERMANY &#8211; OCTOBER 19: Jensen Huang, CEO of Nvidia, pictured at the Invest in Germany Summit 2026 event on October 19, 2026 in Berlin, Germany. (Photo by Thomas Koehler\/Photothek via Getty Images)<\/p>\n<p>Thomas Koehler | Photothek | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Nvidia stock <a href=\"https:\/\/www.cnbc.com\/2026\/11\/12\/nvidia-nvda-jensen-huang-second-affair.html\">plunged in early trading on Thursday<\/a> after Jensen Huang <a href=\"https:\/\/www.cnbc.com\/2026\/11\/12\/nvidia-jensen-huang-ceo-live-updates.html\">stepped down as CEO<\/a>. Huang co-founded the chipmaker 33 years ago and built it into a behemoth at the center of the artificial intelligence boom.<\/p>\n<p>Since <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-3\"><a href=\"https:\/\/www.cnbc.com\/quotes\/NVDA\/\">Nvidia<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> is among the largest publicly traded companies by market capitalization, its stock is, by default, a substantial holding in several popular mutual funds and exchange-traded funds. <\/p>\n<p>Many investors therefore hold the chipmaker&#8217;s stock in their portfolios \u2014 and may worry about their exposure.<\/p>\n<p>But mutual fund and ETF investors&#8217; exposure to Nvidia stock is likely relatively low, data shows \u2014 and any big swings in its stock price are likely to have a fairly muted impact on investor portfolios, financial advisors said.  <\/p>\n<p>&#8220;This is just a very contemporary, sensational case of risk,&#8221; said Philip Chao, a certified financial planner and chief investment officer at Experiential Wealth, based in Cabin John, Maryland. &#8220;But that is part and parcel to stock investing.&#8221;<\/p>\n<\/div>\n<div class=\"group\">\n<div class=\"RelatedContent-relatedContent\" id=\"RegularArticle-RelatedContent-1\">\n<div class=\"RelatedContent-container\">\n<div class=\"RelatedContent-nonCollapsibleContent\">\n<h2 id=\"read-more-cnbc-personal-finance-coverage\" class=\"RelatedContent-header\">Read more CNBC personal finance coverage<\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Nvidia&#8217;s stock fell more than 10% early Thursday on news of Huang&#8217;s resignation. <\/p>\n<p>Huang stepped down following his admission to having an affair with Alice Huang, a woman who U.S. intelligence officials believe is a spy for China, and after reports that he had a separate extramarital relationship with a direct report, Kimberly Powell, vice president of healthcare at Nvidia. Reuters also <a href=\"https:\/\/www.cnbc.com\/2026\/11\/12\/nvidia-jensen-huang-ceo-live-updates.html\">reported<\/a> Thursday that Huang had an &#8220;intimate relationship&#8221; with a second Nvidia employee, citing two people familiar with the matter.<\/p>\n<p>The stock has since pared some of those losses, and was down more than 5% as of roughly 2:50 p.m. EST.<\/p>\n<p>However, investors &#8220;shouldn&#8217;t worry&#8221; about their exposure, Chao said.<\/p>\n<p>For example, if Nvidia were 5% of an overall fund&#8217;s holdings and the stock dropped 10%, the fund&#8217;s value would decline 0.5%, assuming all else was equal, Chao said. <\/p>\n<p>&#8220;It&#8217;s not a big deal,&#8221; he said. &#8220;Most people are just reacting to the sensational aspect of this [news].&#8221;<\/p>\n<\/div>\n<h2 id=\"nvidias-impact-on-popular-etfs\" class=\"ArticleBody-subtitle\"><a id=\"headline0\"\/>Nvidia&#8217;s impact on popular ETFs<\/h2>\n<div class=\"group\">\n<p>Let&#8217;s look at some of the <a href=\"https:\/\/www.morningstar.com\/funds\/how-largest-stock-etfs-us-performed\" target=\"_blank\">most popular stock ETFs<\/a> for some specific examples of why investors likely have limited exposure. <\/p>\n<h3 id=\"1-vanguard-sp-500-etf\" class=\"ArticleBody-smallSubtitle\">1. Vanguard S&amp;P 500 ETF<\/h3>\n<p>Nvidia stock is the largest holding in the Vanguard S&amp;P 500 ETF (<span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-6\"><a href=\"https:\/\/www.cnbc.com\/quotes\/VOO\/\">VOO<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>). <\/p>\n<p>The fund, as the name suggests, tracks the performance of the S&amp;P 500 U.S. stock index and had a market capitalization of $1.7 trillion as of Sept. 30, <a href=\"https:\/\/investor.vanguard.com\/investment-products\/etfs\/profile\/voo#portfolio-composition\" target=\"_blank\">according<\/a> to the most recent Vanguard data.<\/p>\n<p>On that date, Nvidia stock accounted for about 8.4% of the entire portfolio. <\/p>\n<p>Assuming that weighting carried forward to today, a 5% decline in Nvidia&#8217;s stock would only cause the fund to lose about 0.42% of its value, all else equal, according to an analysis by Experiential Wealth for CNBC. <\/p>\n<p>A 10% decline would lead the fund to drop by 0.84%, according to the analysis. <\/p>\n<h3 id=\"2-invesco-qqq-trust\" class=\"ArticleBody-smallSubtitle\">2. Invesco QQQ Trust<\/h3>\n<p>The Invesco QQQ Trust (<span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-8\"><a href=\"https:\/\/www.cnbc.com\/quotes\/QQQ\/\">QQQ<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>) is an ETF that tracks the performance of the tech-heavy Nasdaq-100 index. <\/p>\n<p>The fund held about $473.8 billion as of Nov. 10, according to Invesco <a href=\"https:\/\/www.invesco.com\/qqq-etf\/en\/about.html\" target=\"_blank\">data<\/a>. <\/p>\n<p>Nvidia was its second-largest holding, at 6.8% of the overall portfolio. Apple was No. 1, at about 8.4%. <\/p>\n<p>Based on that weighting, the fund would lose just 0.34% of its value if Nvidia&#8217;s stock lost 5%, all else equal, according to the Experiential Wealth analysis. A 10% Nvidia loss would equate to a 0.68% loss for the overall fund.<\/p>\n<h3 id=\"3-vanguard-morningstar-total-stock-market-etf\" class=\"ArticleBody-smallSubtitle\">3. Vanguard Morningstar Total Stock Market ETF<\/h3>\n<p>Nvidia stock was the largest holding in the Vanguard Morningstar Total Stock Market ETF (<span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-10\"><a href=\"https:\/\/www.cnbc.com\/quotes\/VTI\/\">VTI<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>). <\/p>\n<p>The fund had $1.8 trillion as of Oct. 31, <a href=\"https:\/\/investor.vanguard.com\/investment-products\/etfs\/profile\/vti\" target=\"_blank\">according<\/a> to Vanguard.<\/p>\n<p>Nvidia stock accounted for about 7.13% of the fund, as of Sept. 30<strong>.<\/strong><\/p>\n<p>According to that weighting, the overall fund would lose roughly 0.36% of its value if Nvidia&#8217;s stock lost 5%, all else equal, according to Experiential Wealth&#8217;s analysis. A 10% Nvidia loss would equate to a roughly 0.71% loss for the overall fund.<\/p>\n<p>&#8220;There&#8217;s a difference between [stock] volatility and substantial losses you cannot recover,&#8221; Chao said. <\/p>\n<p>The Nvidia stock moves fall in the former camp, not the latter, he said. <\/p>\n<\/div>\n<h2 id=\"average-nvidia-exposure-in-all-mutual-funds-etfs\" class=\"ArticleBody-subtitle\"><a id=\"headline1\"\/>Average Nvidia exposure in all mutual funds, ETFs<\/h2>\n<div class=\"group\">\n<p>Across all mutual funds and ETFs, &#8220;<a href=\"https:\/\/www.morningstar.com\/investing-terms\/large-growth\" target=\"_blank\">large growth<\/a>&#8221; funds have the largest average weighting to Nvidia stock, according to Morningstar data. These are funds that tend to hold shares in fast-growing U.S. stocks with large market capitalizations. <\/p>\n<p>Large growth funds had an average 10.34% weighting to Nvidia stock as of Wednesday, according to Morningstar. Funds that focus on the technology sector had a 7.31% average weighting to the stock, the second-largest exposure, it found. <\/p>\n<p>Of course, Nvidia stock doesn&#8217;t exist in a vacuum, financial experts said. <\/p>\n<p>&#8220;A 10% Nvidia drop would usually pull down other semiconductor and AI-linked names, such as AMD &#8230; and Micron,&#8221; Chao said. <\/p>\n<p>And that means mutual fund and ETF losses could be larger than Nvidia holdings might otherwise suggest, he said. <\/p>\n<p>&#8220;This event could easily add further pressure to already stretched AI-related stock valuations,&#8221; Ren\u00e9e Friedman, global head of research at EXANTE, a brokerage firm, wrote in an e-mail. <\/p>\n<p>However, that&#8217;s not a foregone conclusion, experts said. <\/p>\n<p>The S&amp;P 500 index and the <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-13\"><a href=\"https:\/\/www.cnbc.com\/quotes\/.IXIC\/\">Nasdaq Composite<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>, for example, were down slightly for the day as of about 2:50 p.m. EST.<\/p>\n<\/div>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.cnbc.com\/2026\/11\/12\/nvidia-stock-drop-etf-mutual-fund-investors.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"BERLIN, GERMANY &#8211; OCTOBER 19: Jensen Huang, CEO of Nvidia, pictured at the Invest in Germany Summit 2026&hellip;\n","protected":false},"author":3,"featured_media":48839,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-48838","post","type-post","status-publish","format-standard","has-post-thumbnail","category-investing","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/48838","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=48838"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/48838\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/48839"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48838"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48838"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48838"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}