Nvidia (NASDAQ: NVDA) has been one of the most impressive growth stocks of all time, but it has pulled back by more than 10% from its recent highs. However, with shares trading for more than 38 times sales even after the decline, many investors may not want to buy Nvidia stock individually.

The best way to get exposure to Nvidia in your stock portfolio might be through an exchange-traded fund (ETF) that has a large allocation to the chipmaking giant but also owns plenty of other stocks. Here are two in particular that you might want to take a closer look at right now.

A rising tide lifts all chipmakers

Nvidia is certainly the most prolific chipmaker in the market right now, and for good reason, but it isn't the only one that is benefiting from the surge in artificial intelligence (AI) investment. The Invesco PHLX Semiconductor ETF (NASDAQ: SOXQ) could be a great way to invest.

For one thing, its 0.19% expense ratio is among the lowest in the semiconductor ETF space and is extremely low for a narrowly focused index fund in general.

This is a rather concentrated ETF with just 30 holdings, all of which are semiconductor manufacturers (chipmakers). As you might expect, large companies make up the bulk of the holdings, but more than one-fifth of the portfolio is small and mid-cap stocks. Nvidia is the highest-weighted holding with a 14% allocation, and Broadcom (NASDAQ: AVGO), AMD (NASDAQ: AMD), Taiwan Semiconductor Manufacturing (NYSE: TSM), and Texas Instruments (NASDAQ: TXN) round out the top five.

So, if you want to buy the post-earnings dip in Nvidia, but you're bullish on the chipmaking industry as a whole, this could be an ETF to put on your watch list.

Nvidia isn't the only megacap that has pulled back

Although Nvidia has been in the headlines recently since it is the most recent of the megacaps to report earnings, it's important to realize that it isn't the only "Magnificent Seven" stock that has pulled back recently. In fact, with the S&P 500 close to its all-time high, it might surprise you to learn that five out of the seven stocks are down by more than 10% from their 52-week highs.

Data source: yCharts. Percentages as of 8/29/2024.

Now, I'm not saying that these stocks have become "cheap" by any definition. All of the Magnificent Seven stocks trade for price-to-earnings (P/E) multiples that are well above that of the average S&P 500 company. But they also have tons of growth potential, and if you're a believer that these winners will keep winning, you can invest in all seven with the Roundhill Magnificent Seven ETF (NASDAQ: MAGS).

The ETF offers equal-weight exposure to all seven stocks and comes with a reasonable 0.29% expense ratio. If you think the pullbacks in companies like Alphabet and Amazon.com have been overdone in addition to Nvidia, this ETF could be worth a closer look right now.

Which is best for you?

Both of these are solid ETFs with reasonable fees, and the best choice for you depends on what your investment goals are and what groups of stocks you want exposure to. After Nvidia's latest earnings, if you think the recent pullback has gone a bit too far and want to invest but don't necessarily want to open a large position in Nvidia itself, these two ETFs could be smart choices for your portfolio.

Should you invest $1,000 in Invesco Exchange-Traded Fund Trust II - Invesco Phlx Semiconductor ETF right now?

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Matt Frankel has positions in Amazon. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, Tesla, and Texas Instruments. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Want to Buy the Nvidia Dip? Here Are 2 ETFs You Should Take a Look At was originally published by The Motley Fool