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Nvidia-Free ETF: Growth Stocks Without the Chip Giant
15 Nov
Summary
- Vanguard Russell 1000 Value ETF offers growth stocks without Nvidia.
- Amazon, Apple, Microsoft are top holdings in the Nvidia-free ETF.
- This ETF has a low expense ratio and beat the S&P 500 year-to-date.
Investors looking to invest in growth-focused exchange-traded funds (ETFs) but wish to avoid Nvidia have a distinct choice in the Vanguard Russell 1000 Value ETF. This ETF provides exposure to major technology companies such as Amazon, Apple, and Microsoft, which constitute its top three holdings.
The Vanguard Russell 1000 Value ETF tracks the Russell 1000 Value Index, which categorizes established tech companies like Amazon into its value segment. This approach differs from growth indexes that might exclusively label all tech firms as growth stocks.
As of September 30, Amazon, Apple, and Microsoft collectively represented 17.4% of the ETF's assets. While Apple and Microsoft are split between growth and value indexes, Amazon's entire market cap is in the value index, making it the largest single holding.
The ETF also includes traditional value stocks like Berkshire Hathaway and JPMorgan Chase. It boasts a 21.6 P/E ratio and a 1.5% dividend yield, making it a more income-focused and less expensive option than the S&P 500 ETF. Its year-to-date performance has surpassed the S&P 500, driven by strengths in sectors like energy and healthcare and reduced exposure to semiconductors.
