It's the era of Nvidia Corp (NASDAQ: NVDA).
This week, the US tech giant has continued to dominate financial headlines. Yesterday, everyone was talking about how it became the largest company in the US stock market. This morning, the buzz is about its 3% overnight drop.
Nvidia shares have delivered impressive returns for its shareholders, surging 171% since January 2024, including a breathtaking 38% gain in the past month.
However, not everyone has direct access to US shares or feels comfortable navigating the complexities of investing in foreign markets, let alone dealing with the hassle of creating an international trading account.
This brings up an intriguing alternative: investing in exchange-traded funds (ETFs) that include Nvidia in their portfolios.
Let's first hear what experts say about Nvidia's future. Then explore ASX ETFs that offer the best exposure to the company.
What experts say about Nvidia shares
Analysts remain optimistic about Nvidia's future. The company enjoys its leadership in graphics processing units (GPUs) and its expanding presence in artificial intelligence (AI).
The company's recent advancements in AI technology have positioned it at the forefront of the industry, attracting significant attention and investment. Nvidia boasts over 80% market share in the important AI market keeping competitors at bay, as my colleague Keithen highlighted.
Despite lofty valuations, many predict the company's growth to continue as it leverages its cutting-edge technology to explore new markets and opportunities.
Betashares Nasdaq 100 ETF (ASX: NDQ)
One ETF that stands out for providing excellent exposure to Nvidia is the BetaShares NASDAQ 100 ETF. This ETF tracks the performance of the NASDAQ 100 Index, which includes 100 of the largest non-financial companies listed on the NASDAQ stock market.
At present, Nvidia represents 8.7% of this ETF, making the NDQ ETF a great option for those looking to invest in Nvidia indirectly.
By investing in NDQ, you're not only gaining exposure to Nvidia but also to other leading tech giants like Apple, Amazon, and Microsoft. This diversification helps mitigate the risks associated with investing in a single stock.
The NDQ ETF charges a management fee of 0.48%.
Other ASX ETFs with Nvidia shares
Other ASX ETFs that own Nvidia shares are Global X Semiconductor ETF (ASX: SEMI) and Betashares Metaverse ETF (ASX: MTAV), as my colleague James highlighted.
- Global X Semiconductor ETF has 13% of its net assets invested in Nvidia with a management fee of 0.45%
- Betashares Metaverse ETF has 8% of its net assets invested in Nvidia with a management fee of 0.69%
The Global X Semiconductor ETF has the highest exposure to Nvidia, with the rest invested in the eco-system of the AI industry. The constituents include semiconductor equipment makers like Taiwan Semiconductor Manufacturing and ASML Holding.
These are all market leaders in their respective fields, located in Taiwan and the Netherlands. This ETF might be more suitable for those seeking broader global exposure in the industry.
This ETF is up 68% over the past year.
The Betashares Metaverse ETF has a similar exposure to Nvidia with a higher management fee. This ETF is up 37% over the past year.
