From Nasdaq: 2024-06-20 11:00:00

The XLK ETF is set for a significant rebalance, increasing NVIDIA exposure while reducing Apple’s share. NVIDIA’s AI dominance has driven a 164% surge in its stock this year, surpassing Apple in market value. XLK will shift its allocation as a result, creating billion-dollar trades in the process.

XLK’s concentration limits have impacted performance despite NVIDIA’s rise. The ETF’s top holdings include Microsoft, Apple, and NVIDIA. As AI continues to boom, tech ETFs like XLK stand to gain. The sector has seen 36.6% CAGR growth and is projected to reach $811.75 billion by 2030 in the global AI market.

In response to Fed rate cut forecasts, technology stocks are expected to thrive. With one rate cut anticipated this year and four in 2025, tech giants like Apple and NVIDIA could benefit. Lower interest rates make borrowing for growth initiatives cheaper, fueling tech sector resilience during uncertain times.



Read more at Nasdaq: Here’s What You Need to Know About Tech ETF XLK’s Shake-Up