ETF analyst Eric Balchunas has stated that crypto-themed ETFs, home builders, fintech, and DXJ-themed funds are primarily outperforming the S&P 500 index in ETFs with almost no exposure to Nvidia stocks.
Nvidia, a major player in the tech industry, has a significant influence on the stock market. However, ETFs that lack exposure to Nvidia stocks are not necessarily underperforming. On the contrary, certain sectors are showing strong performance despite the absence of Nvidia stocks.
Crypto-themed ETFs, in particular, are leading the pack. These funds, which focus on companies involved in the development and use of cryptocurrencies and blockchain technology, are outperforming the S&P 500 index. This suggests that the crypto sector continues to be a strong investment opportunity, even in the absence of traditional tech stocks like Nvidia.
In addition to crypto-themed ETFs, home builders and fintech are also outperforming the S&P 500 index. This indicates that these sectors are also strong investment opportunities. DXJ-themed funds, which focus on Japanese equities, are also performing well.
In conclusion, while Nvidia is a significant player in the stock market, its absence in certain ETFs does not necessarily lead to underperformance. Instead, sectors like crypto, home building, fintech, and Japanese equities are showing strong performance, suggesting diverse investment opportunities in the market.