Options traders are anticipating Nvidia's (NVDA) earnings results to swing the stock nearly 10% in either direction, a move that could draw down or raise up markets (^DJI, ^IXIC, ^GSPC) along with the chipmaker. BNY Mellon global head of ETFs Ben Slavin joins Brad Smith in-studio to talk about the ETFs that could also be swayed through their exposures to Nvidia and the AI chip trade:
"One thing that's very important for investors really to understand is what those weights are in the ETFs they hold. Obviously, Nvidia, given the big run-up in the stock, is a significant weight in not just the S&P but a wide variety, several hundred ETFs that hold the stock. And so obviously, depending on which way things go here, you're going to see a big impact, and those ETFs are going to move."
Slavin notes the gains actively managed ETFs have seen over passively managed funds. He also notes that a major risk more investors are reconsidering is their concentration in any big stock, namely the Magnificent Seven tech names.,
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This post was written by Luke Carberry Mogan.
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