Nvidia’s Limited Impact on This Promising Semiconductor ETF

Significant Growth in Semiconductor ETFs in 2026

This year, semiconductor stocks are showing remarkable performance, with 10 out of over 5,200 exchange-traded products (ETPs) in the U.S. posting gains of at least 50% year-to-date. Among these, the State Street SPDR S&P Semiconductor ETF (NYSEMKT: XSD), now valued at $3 billion, has emerged as a noteworthy contender despite having only a 2% allocation to Nvidia (NASDAQ: NVDA), while larger funds typically allocate around 17.6% to Nvidia.

The SPDR S&P Semiconductor ETF, which tracks an equally weighted index, has 44 holdings with an average market capitalization of $270.7 billion—significantly lower than the average $1.4 trillion market cap of its largest competitors. The fund charges an annual fee of 0.35%, equating to $35 on a $10,000 investment.