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On February 22, when Nvidia shares created history by soaring over 16 percent in a single day and adding $277 billion to its market cap, several thematic global exchange traded funds (ETFs) scaled their life-time peaks. Their skewed weightage on the shares of the AI chipmaker and a secular rally in semiconductor stocks helped the surge.
One of the biggest beneficiaries was Lyxor MSCI Semiconductor ESG Filtered UCITS ETF, which goes with ticker name CHIP. It has a weightage of 31.65 percent to Nvidia shares. With such concentrated positioning, CHIP has the highest weightage among all global ETFs on Nvidia shares. The concentration risk seemed to have paid off in 2024 so far with returns generated in excess…
