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The Fund seeks to track the investment results of the S&P 500 Growth Index; the Underlying Index, which measures the performance of the large-capitalization growth sector of the U.S. equity market. It is a subset of the S&P 500; the Parent Index and consists of those stocks in the Parent Index exhibiting the strongest growth characteristics, as determined by S&P Dow Jones Indices LLC; the Index Provider or SPDJI, a subsidiary of S&P Global, Inc.

Apple Inc

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NVIDIA Corporation

Amazon.Com Inc

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Broadcom Inc

Tesla, Inc.

Eli Lilly & Co.

Nvidia Corp&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) H20&nbsp;graphics processing unit (GPU) revenue could be affected by China&#8217;s prioritization of domestic-made&nbsp;artificial intelligence&nbsp;(AI) chips.
China has informally urged its companies to leverage domestic AI chips over those from&nbsp;Nvidia, SCMP <a target="_blank" href="https://www.scmp.com/tech/article/3281254/tech-war-china-advocates-use-local-ai-chips-over-those-us-powerhouse-nvidia" rel="noreferrer noopener">cites</a> familiar sources. The stock is trading lower on Monday.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/10/41143369/apple-to-launch-budget-iphone-in-2025-aims-for-market-share-gains-from-huawei-and-xiaomi" rel="noreferrer noopener">Apple To Launch Budget iPhone in 2025, Aims for Market Share Gains from Huawei and Xiaomi</a>
The Asian country ordered its companies to prioritize&nbsp;Huawei Technologies chips instead.
Reports indicating China&#8217;s retaliation against the U.S. semiconductor embargo on the Asian country started emerging in May. The U.S. cited national security reasons for the sanctions.
According to official records, China committed <a target="_blank" href="https://www.benzinga.com/government/24/09/40748185/chinas-markets-still-manage-to-get-nvidia-ai-chips-via-smuggling-report" rel="noreferrer noopener">43.5 billion yuan</a> ($6.12 billion) to computing data centers.
<a target="_blank" href="https://www.benzinga.com/news/24/08/40550305/nvidia-tech-fuels-chinese-ai-growth-overseas-alibaba-ramps-up-7b-investment" rel="noreferrer noopener">Prior reports said</a> Chinese AI developers bypass U.S. sanctions by leveraging blockchain technology via overseas data centers. China also resorted to smuggling Nvidia chips.
Recently, Alibaba Group Holding&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>)&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/09/40977069/alibaba-teams-up-with-nvidia-to-supercharge-evs-for-chinese-automakers-report" rel="noreferrer noopener">cloud computing services unit</a> collaborated with Nvidia to boost the&nbsp;autonomous driving&nbsp;experience for Chinese smart vehicle owners. The Chinese hyperscalar had previously acknowledged the severe impact of US sanctions on its AI ambitions.
Nvidia can earn $12 billion in sales from 1 million H20 GPUs in China in 2024. Nvidia acknowledged China as its third-largest market in its financial year, which ended January 28.
Investors can gain exposure to Nvidia through SPDR Select Sector Fund &#8211; Technology (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) and iShares S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVW#NYSE">IVW</a>).
<h2 class="wp-block-heading">Will Nvidia Stock Go Up?</h2>
When trying to assess whether or not NVIDIA will trade higher from current levels, it's a good idea to take a look at analyst forecasts. 
Wall Street analysts have an average 12-month price target of $152.76 on NVIDIA. The Street high target is currently at $200.0 and the Street low target is $90.0. Of all the analysts covering NVIDIA, 32 have positive ratings, 2 have neutral ratings and no one has negative ratings.
In the last month, one analyst has adjusted price targets. Here's a look at recent price target changes <a href="https://www.benzinga.com/quote/NVDA/analyst-ratings">[Analyst Ratings]</a>. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering NVIDIA have performed in recent history. 
Stocks don't move in a straight line. The average stock market return is approximately 10% per year. NVIDIA is 159.34% up year-to-date. The average analyst price target suggests the stock could have further upside ahead.
For a broad overview of everything you need to know about NVIDIA, visit <a href="https://www.benzinga.com/quote/NVDA">here</a>. If you want to go above and beyond, there's no better tool to help you do just that than <a href="https://pro.benzinga.com/">Benzinga Pro</a>. Start your free trial today.
Price Action: NVDA stock is down 0.43% at $124.38 premarket at last check Monday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/news/24/10/41162084/amazon-prime-video-ramps-up-ads-taking-on-netflix-and-disney-in-streaming-battle" target="_blank" rel="noreferrer noopener">Amazon Prime Video Ramps Up Ads, Taking on Netflix and Disney+ in Streaming Battle</a></li>
</ul>
Image via Shutterstock

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BABA

NVDA

Nvidia's GPU Sales at Risk As China Pushes Local AI Chips in Retaliation

Nvidia Corp&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) jittery investors await an update on its Blackwell chip rollout ahead of the Goldman Sachs Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) conference in San Francisco, where Nvidia chief Jensen Huang will speak with Goldman chief speak with&nbsp;David Solomon, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-09-10/nvidia-s-blackwell-chip-delay-is-center-stage-amid-stock-slump?srnd=phx-technology&amp;sref=TBDibEcD" rel="noreferrer noopener">reports</a>.
The stock took a 15% hit since it released <a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40613050/nvidia-q2-earnings-guidance-top-street-view-as-ai-fuels-record-data-center-revenue-gross-margin-fal" rel="noreferrer noopener">its quarterly print</a> and disclosed Blackwell chip&#8217;s launch remains impaired by engineering snags.
CEO Jensen Huang&#8217;s assurances also failed to contain the meltdown. However, Nvidia expects &#8220;several billion dollars&#8221; of revenue from Blackwell in its fiscal fourth quarter.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/10104052/newplot-7.png" alt="" class="wp-image-540142" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/10104052/newplot-7.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/10104052/newplot-7-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Bloomberg reports that Zacks Investment Management client portfolio manager Brian Mulberry and Bank of America analysts flagged the delay as a potent concern in the absence of other positive catalysts for the stock. Mulberry expects Blackwell&#8217;s timely execution to contain the stock volatility.
Mai Capital Management portfolio manager Chris Grisanti, in <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40787302/nvidia-shares-riding-on-huge-ai-tailwind-says-portfolio-strategist-why-expert-says-" rel="noreferrer noopener">a CNBC interview</a>, snubbed the selloff backed by the ambitious artificial intelligence ambitions of cash-rich Big Tech giants like Microsoft&nbsp;Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) and&nbsp;Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) Amazon Web Services.
<a target="_blank" href="https://www.benzinga.com/news/24/09/40790997/taiwan-semiconductors-strong-august-sales-hint-at-big-gains-ahead-ai-and-iphone-demand-fuel-optimism" rel="noreferrer noopener">Meanwhile, Nvidia&#8217;s key</a> supplier, Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>), recorded 33% topline growth in August 2024, signaling optimism over the smartphone market recovery and continued demand for&nbsp;Nvidia&#8217;s&nbsp;artificial intelligence chips.
Despite the selloff, Nvidia stock is up over 137% in the last 12 months. Investors can gain exposure to the stock through iShares Russell 1000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWF#NYSE">IWF</a>) and iShares S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVW#NYSE">IVW</a>).
Price Action: NVDA stock is down 0.37% at $106.08 at the last check on Tuesday.
Photo via Shutterstock

AMZN

MSFT

Nvidia Faces Investor Scrutiny Over Blackwell Chip Delays, Big Revenue Expected: Report

Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) recently launched a new line of Windows PCs with AI capabilities.
However, the Wall Street Journal <a target="_blank" href="https://www.wsj.com/tech/microsoft-rolled-out-ai-pcs-that-cant-play-top-gamesand-theres-no-quick-fix-0a1b6376?mod=tech_lead_story" rel="noreferrer noopener">reports</a> that these PCs, powered by Qualcomm Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) chips using designs from U.K.-based Arm Holdings Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>), need help with gaming compatibility.
Unlike the traditional Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>)- powered PCs that have dominated the market for decades, these new AI PCs require a translation layer to run most popular games like League of Legends and Fortnite. This results in glitches and performance issues.
Analysts predict these issues may be resolved over time, especially with the expected launch of Intel&#8217;s AI-powered chips later this year. These upcoming models could reclaim market share, particularly among gamers prioritizing performance and compatibility.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/03090625/newplot.png" alt="" class="wp-image-526972" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/03090625/newplot.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/03090625/newplot-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
This situation mirrors past struggles with ARM-based Windows devices. <a target="_blank" href="https://www.benzinga.com/news/24/08/40347392/apple-intel-and-amd-lead-charge-in-ai-capable-pc-market-surge-report" rel="noreferrer noopener">Canalys flagged that</a> Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) rules the AI PC market with its entire Mac lineup.
Intel, Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), and Qualcomm are among the other AI PC players. AI PC shipments reached 8.8 million in the second quarter of 2024, accounting for 14% of total PCs.
Microsoft&nbsp;stock gained over 25% in the last 12 months. Investors can gain exposure to the stock through iShares Russell 1000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWF#NYSE">IWF</a>) and iShares S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVW#NYSE">IVW</a>).
<h2 class="wp-block-heading">Microsoft Stock Prediction For 2024</h2>
Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.
Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Microsoft, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Microsoft, the 200-day moving average sits at $410.92, according to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, which is below the current price of $417.74. For more on charts and trend lines, <a href="https://pro.benzinga.com/">see a description here.</a>
Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.
Price Action: MSFT stock is up 0.19% at $417.93 premarket at last check Tuesday.
Disclaimer: This content was produced with the assistance of AI tools and reviewed by Benzinga editors.
Photo via Microsoft

AAPL

INTC

QCOM

Microsoft's AI PCs Stumble With Game Compatibility: Report

Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) has succeeded in containing its employee churn rate through its compensation packages.
The chip designer is known for its demanding work environment, where employees slog up to seven days a week, with work hours stretching until 2 a.m.
CEO Jensen Huang has said&nbsp;he prefers&nbsp;to &#8220;torture them into greatness,&#8221; marking a stark contrast with his rivals keen on hiring and firing, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-08-26/what-s-it-like-working-at-nvidia-you-may-get-rich-but-work-remains-stressful?sref=TBDibEcD" rel="noreferrer noopener">reports</a>.
At the same time, Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) looks to downsize in thousands or over <a target="_blank" href="https://www.benzinga.com/news/24/08/40528681/intel-board-member-lip-bu-tan-resigns-amid-chipmakers-struggle-with-cost-cuts" rel="noreferrer noopener">15% of its workforce</a> to accomplish a business turnaround. The company had slashed 5% of its workforce in 2023.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/08/40550305/nvidia-tech-fuels-chinese-ai-growth-overseas-alibaba-ramps-up-7b-investment" rel="noreferrer noopener">Nvidia Tech Fuels Chinese AI Growth Overseas, Alibaba Ramps Up $7B Investment</a>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/27045003/newplot-25.png" alt="" class="wp-image-515283" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/27045003/newplot-25.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/27045003/newplot-25-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Nvidia&#8217;s stock grants, which typically vest over four years, have been pivotal to its success with its employees, the New York Post <a target="_blank" href="https://nypost.com/2024/08/26/business/nvidia-employees-can-work-7-days-a-week-until-2-a-m-but-few-leave-because-of-ai-chip-giants-lavish-pay-report/" rel="noreferrer noopener">reports</a>. The stock&#8217;s 3,776% surge since 2019, courtesy of Big Tech&#8217;s splurge on their artificial intelligence ambitions, has made its employees millionaires.
Nvidia&#8217;s 2023 employee churn rate of 5.3% dipped to 2.7% after its market capitalization surpassed $1 trillion, compared to the industry average of 17.7%.
Nvidia&#8217;s artificial intelligence moat has enabled employees to indulge in luxury cars, high-end real estate, and sporting events like the Super Bowl and the NBA Finals.
According to Bloomberg, Nvidia CFO Colette Kress, who assumed office 11 years ago, owns stock valued at $758.7 million, versus Advanced Micro Devices Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) CFO Jean Hu, who joined in 2023, who owns stock valued at $6.43 million.
Nvidia stock surged 170% in the last 12 months. Investors can gain exposure to the stock through Vanguard Information Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>) and iShares S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVW#NYSE">IVW</a>).
Price Actions: NVDA stock traded higher by 0.58% at $127.19 premarket at last check Tuesday.
Photo via Shutterstock

Nvidia's Stock Surge Turns Employees Into Millionaires, Cutting Churn to Record Low: Report

Meta Platforms, Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) political content control has cost its subscriber base.
The Instagram parent noted a significant plunge in the viewership of its popular accounts to the extent of 65% since a shift in its policy in March, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-08-12/instagram-shunning-politics-reduced-views-for-major-accounts?srnd=phx-technology&amp;sref=TBDibEcD" rel="noreferrer noopener">cited</a> a new study.
The viewership data for five notable Instagram accounts with a collective following of 13.5 million people, including those of&nbsp;Hillary Clinton&nbsp;and&nbsp;GLAAD, an LGBTQ activist group whose topics ranged from voting information, reproductive rights, and advocacy for marginalized groups noted a significant decline, Bloomberg cited researchers at&nbsp;<a target="_blank" href="https://accountabletech.org/" rel="noreferrer noopener">Accountable Tech</a>.
Meta focused on political content control for &nbsp;Instagram and Threads after facing flak for intensifying misinformation and partisan bias.
<a target="_blank" href="https://www.benzinga.com/news/24/06/39508227/meta-faces-backlash-over-instagram-threads-political-content-settings" rel="noreferrer noopener">Prior reports indicated</a> that Instagram and Threads users were grappling with an unexpected change in their political content settings.
Meta had&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/03/37715053/metas-strategy-against-election-disinformation-crowdtangle-shutdown-and-new-initiatives" rel="noreferrer noopener">faced global criticism</a> for role the January 6, 2021, Capitol riot vandalism.&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/07/39759624/meta-removes-heightened-penalties-on-donald-trumps-accounts-a-day-after-ex-president-threatens-to-pu" rel="noreferrer noopener">Meta had suspended former</a> U.S. President Donald Trump&#8217;s Facebook and Instagram accounts for two years after the incident.
Meta reinstated his accounts in February 2023 but emphasized that any further violations could result in &#8220;heightened penalties,&#8221; including suspensions lasting from one month to two years.
Meta Platforms stock has gained 69% in the last 12 months as it strives to generate shareholder value by growing its subscriber base for Instagram, Threads, Facebook while accomplishing its artificial intelligence ambitions as it battles competitors like TikTok and X. Investors can gain exposure to Meta Platforms through iShares S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVW#NYSE">IVW</a>) and iShares Russell 1000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWF#NYSE">IWF</a>).
<h2 class="wp-block-heading">META Stock Prediction For 2024</h2>
Meta Platforms revenue growth in FY23 was 15.69%, reflecting the influence of various factors including the macroeconomic environment, demand for its products and services, and its position relative to competitors. This growth is a critical indicator for investors assessing the company&#8217;s future prospects.
Some macro factors that could impact the company's performance in the next year include higher interest rates, progress on reeling in inflation and labor market strength. The Fed's benchmark rate is currently at 5.33%, while PPI recently came in at 0.1%, growing 2.2% from last year. The unemployment rate was most recently reported as 4.3%.
An investor should pay attention to economic conditions to decide whether they think the macro environment is positive or negative for Meta Platforms stock. For real time economic data and breaking market updates, <a href="https://pro.benzinga.com/">check out Benzinga Pro. Try it for free.</a>
How does this stack up against Meta Platforms's peers?
Investors may also want to analyze a stock in comparison to companies with similar products or in similar industries. Meta Platforms operates in the Communication Services sector. The stock has experienced average annual growth of 12.07% compared to the -6.8% average of its peer companies. This is above the broader sector movement of Meta Platforms.
Price Action: META shares traded higher by 0.74% at $519.79 premarket at the last check on Tuesday.
Image Credits &#8211; Shutterstock

Meta's Policy Shift Takes A Toll On Instagram Engagement: Report

Small-cap stocks are on a tear, eyeing their fifth consecutive day of gains on Tuesday. The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) surged 1.9%, propelling the index to a cumulative gain of over 9% across <a href="https://www.benzinga.com/topic/small-caps">the last five sessions.</a> This remarkable streak represents the Russell 2000&#8217;s best five-day performance since June 2020. 
The turbocharged rise of small caps is attributed to the certainty at this point that the Federal Reserve will lower interest rates at its September meeting. In fact, the Russell 2000 rally kicked off last week, driven by June inflation data coming in below expectations, sparking traders&#8217; speculation about rate cuts.
According to the CME Group&#8217;s FedWatch Tool, fed futures now indicate a full 100% probability of an interest rate cut in nearly two months, marking the first reduction in borrowing costs since 2020. On Monday, Fed Chair Jerome Powell struck a dovish tone, acknowledging that recent inflation reports bolster confidence in returning to the 2% target, effectively hinting <a href="https://www.benzinga.com/economics/macro-economic-events/24/07/39779256/powell-praises-latest-inflation-progress-hints-at-imminent-rate-cuts-warns-hes-ve">at forthcoming rate cuts.</a>
Read also: 
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/small-cap-analysis/24/06/39381483/worried-about-market-volatility-benzingas-smallcap-event-has-answers">Worried About Market Volatility? Benzinga&#8217;s SmallCAP Event Has Answers</a></li>
</ul>
<h3 class="wp-block-heading">Chart: Russell 2000 Notches Best 5-Day Upswing In Four Years</h3>
<figure class="wp-block-image size-large"><a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent071624&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="1024" height="453" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/16101012/image-20-1024x453.png" alt="" class="wp-image-438683" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/16101012/image-20-1024x453.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/16101012/image-20-300x133.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/16101012/image-20-768x340.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/16101012/image-20-1536x679.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/16101012/image-20.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
Image: <a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent071624&amp;t=be2bearmibe3na1">Benzinga Pro</a>
<h2 class="wp-block-heading">Investors Rotate From Tech To Small Caps</h2>
Small caps&#8217; heightened sensitivity to interest rate expectations stems from their greater reliance on bank financing, unlike large-cap companies that frequently raise funds through stock and bond issuance in capital markets.
This is leading investors to shift their focus from early beneficiaries of rate cuts – mainly large-cap tech – to those expected to gain at a later stage (small caps and cyclical stocks).
Over the past five sessions, the Russell 2000 Index has outperformed the tech-heavy Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) – which tracks the Nasdaq 100 – by 10.4 percentage points, marking the widest five-day relative gain of small caps over tech since November 2016.
&#8220;There's certainly a bullish interpretation to the rotation, as any profit-taking in ‘overvalued' tech gets funneled into more neglected areas of the U.S. stock market. This buying, in turn, should lift all boats, just as it has helped the old-school Dow to smash above 40,000 to trade at new record highs,&#8221; said David Morrison, senior market analyst at Trade Nation.
<figure class="wp-block-image size-large"><a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent071624&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="1024" height="506" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/16101522/image-21-1024x506.png" alt="" class="wp-image-438690" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/16101522/image-21-1024x506.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/16101522/image-21-300x148.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/16101522/image-21-768x380.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/16101522/image-21-1536x759.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/16101522/image-21.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
<h2 class="wp-block-heading">Preference For Small-Cap Value</h2>
&#8220;We still have questions on whether this rally is sustainable,&#8221; said Ayesha Tariq, macroeconomist and founder of Macrovisor.
Tariq highlighted that the performance of regional banks, which constitute a significant portion of the Russell 2000, remains uncertain as they have yet to report their earnings. While investment banks have shown strong results driven by trading activities, their net interest margins (NIMs) and wealth management divisions are still facing challenges. For instance, Bank of America has reported a 3% decrease in net interest income (NII), and Wells Fargo has seen a 9% decline.
Additionally, the persistence of relatively high yields indicates that regional banks may continue to face unrealized losses on their balance sheets, according to the expert.
Despite the recent rally, Tariq indicates that the Russell 2000 is still grappling with an earnings recession. However, she suggested that from an investment perspective, small-cap value stocks might be more appealing.
She referred to a chart shared by Bank of America that shows the valuation gap between large-cap growth – as tracked by the iShares S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVW#NYSE">IVW</a>) and small-cap value stocks – as monitored through the iShares Russell 2000 Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWN#NYSE">IWN</a>) – was at its widest since 2000, prior to the recent small-cap rally, indicating potential for further a &#8220;catch-up&#8221; and rotation trade.
<figure class="wp-block-image size-large"><a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent071624&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="1024" height="506" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/16102317/image-22-1024x506.png" alt="" class="wp-image-438703" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/16102317/image-22-1024x506.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/16102317/image-22-300x148.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/16102317/image-22-768x380.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/16102317/image-22-1536x759.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/16102317/image-22.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
Read Next:
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39780995/rate-sensitive-cyclical-stocks-poised-for-rally-as-fed-prepares-to-cut-rates-were-o">Rate-Sensitive Cyclical Stocks Poised For Rally As Fed Prepares To Cut Rates: &#8216;We&#8217;re On The Path To Goldilocks,&#8217; Says Bank Of America</a></li>
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Small Cap Stocks Are Having A Moment: Russell 2000 Notches Best 5-Day Rally In Over 4 Years

Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) is looking to hire nearly 800 new employees, just three months after CEO Elon Musk ordered the most significant <a target="_blank" href="https://www.benzinga.com/news/24/04/38361822/tesla-layoffs-hit-marketing-team-retracts-advertising-push" rel="noreferrer noopener">round of layoffs</a> in the company&#8217;s history. The stock is trading higher premarket Tuesday.
The job openings have steadily appeared on Tesla&#8217;s careers page, with positions ranging from artificial intelligence specialists to service jobs, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-07-16/new-tesla-tsla-jobs-focus-on-ai-robotaxi-after-major-cuts?srnd=technology-vp&amp;sref=TBDibEcD" rel="noreferrer noopener">reports</a>.
Many new positions are related to Tesla&#8217;s AI and robotics initiatives, including developing the Optimus humanoid robot and self-driving technology.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39595720/tesla-deliveries-fall-for-second-straight-quarter-but-stock-takes-off-as-q2-numbers-exceed-expec" rel="noreferrer noopener">Tesla Deliveries Fall For Second Straight Quarter, But Stock Takes Off As Q2 Numbers Exceed Expectations (CORRECTED)</a>
Currently, at least 25 job listings are related to self-driving development or Autopilot, and 30 are focused on Optimus. The company is also looking to replenish its customer-facing departments, according to Bloomberg.
Tesla&#8217;s rapidly expanding energy storage business is another critical area for growth.
The company has posted several dozen energy-related positions in Palo Alto and Lathrop, California, particularly for its Megapacks and solar products. These roles span from engineering positions to installation jobs.
Investors can gain exposure to Tesla through iShares S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVW#NYSE">IVW</a>) and ARK Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKK#NYSE">ARKK</a>).
Price Action: TSLA shares traded higher by 1.16% at $255.56 premarket at the last check on Tuesday.
Also Read:
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<li><a href="https://www.benzinga.com/news/24/07/39778389/automotive-stocks-like-lucid-and-peers-are-trading-lower-on-monday-whats-going-on" target="_blank" rel="noreferrer noopener">China&#8217;s Slow Economic Growth Hits EV Stocks: Canoo, Lucid, Polestar Drop</a></li>
</ul>
Image Via Shutterstock

ARKK

TSLA

What's Going On With Tesla Stock On Tuesday?

Artificial intelligence chip stock Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) saw a continued rally in 2024 as the AI frenzy is in no mood to slow down. The stock surged 167% year-to-date.
Tech investor James Anderson&nbsp;expects Nvidia&nbsp;to reach a market cap of $50 trillion within <a target="_blank" href="https://www.benzinga.com/news/24/07/39772563/whats-going-on-with-ai-stocks-nvidia-amd-on-monday" rel="noreferrer noopener">the next ten years</a>.
However, in the second quarter, Nvidia saw DNB Asset Management make significant adjustments to its U.S.-traded big tech holdings.
DNB trimmed its holdings of Nvidia, despite the stock&#8217;s strong performance, while increasing its positions in Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), which had been underperforming in the market, Barron&#8217;s <a target="_blank" href="https://www.barrons.com/articles/nvidia-stock-apple-tesla-intel-65a7bd6a" rel="noreferrer noopener">reports</a>.
Additionally, DNB more than doubled its stake in Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>). DNB manages around $88 billion in assets.
DNB&#8217;s stake adjustment coincided with reports of the French competition authority investigating Nvidia for alleged anti-competitive practices.
Benoit Coeure, the agency&#8217;s president, told Reuters during a press briefing that Nvidia could face charges pending the outcome of the investigation.
Nvidia <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37414352/wall-streets-dean-of-valuation-thinks-youre-setting-yourself-up-to-lose-with-nvidia" rel="noreferrer noopener">has faced skepticism</a> from New York University Stern School of Business Professor Aswath Damodoran over recent months, with the professor repeatedly calling the stock overvalued.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/16032429/newplot-32.png" alt="" class="wp-image-437635" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/16032429/newplot-32.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/16032429/newplot-32-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
In March, he reflected on past predictions that didn&#8217;t pan out, suggesting either a misunderstanding on his part or by the market.
Despite Nvidia&#8217;s leading role in AI, Damodoran cautioned that achieving profitability might be more complex than believed.
Investors can gain exposure to Nvidia through Vanguard Information Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>) and iShares S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVW#NYSE">IVW</a>).
Price Actions: NVDA shares traded higher by 0.02% at $128.46 premarket at the last check on Tuesday. 
Photo via Wikimedia Commons

What's Going On With Nvidia Stock On Tuesday?

Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) stock is on a roll thanks to the artificial intelligence frenzy. In June 2024, Nvidia briefly became the world's most valuable company, reaching a valuation of $3.34 trillion.
During the Bank of America Securities 2024 Global Technology Conference, Ian Buck, Vice President and General Manager of Nvidia's hyperscale and HPC business, highlighted the financial benefits of investing in GPUs, the First Post <a href="https://www.firstpost.com/tech/nvidia-promises-up-to-700-return-upon-investing-in-ai-gpus-eyes-4-trillion-market-cap-13792152.html" target="_blank" rel="noreferrer noopener">reports</a>.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/07/39733017/taiwan-semiconductor-joins-the-trillion-dollar-club-surpassing-tesla-report" rel="noreferrer noopener">Taiwan Semiconductor Joins The Trillion Dollar Club, Surpassing Tesla: Report</a>
He mentioned that cloud providers see substantial returns on investment with Nvidia's GPUs. Over four years, providers can generate five dollars for every dollar spent on GPUs.
Buck pointed out that inferencing tasks are even more profitable, with a seven-dollar return for each dollar invested in the same period, and this figure is on the rise.
Nvidia is actively addressing the growing demand for AI inference with products like Nvidia Inference Microservices (NIMs), which support popular AI models such as Llama, Mistral, and Gemma. The company is also focusing on its new Blackwell GPU.
Buck emphasized the necessity of early collaboration, noting the significant planning required for data center construction projects.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/12091734/newplot-27.png" alt="" class="wp-image-433421" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/12091734/newplot-27.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/12091734/newplot-27-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Investors can gain exposure to Nvidia through Vanguard Information Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>) and iShares S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVW#NYSE">IVW</a>).
Price Action: NVDA shares traded higher by 2.35% at $130.39 at the last check on Friday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/m-a/24/07/39725192/amd-challenges-nvidia-with-strategic-665m-purchase-of-finnish-ai-lab" target="_blank" rel="noreferrer noopener">AMD Challenges Nvidia With Strategic $665M Purchase Of Finnish AI Lab</a></li>
</ul>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Nvidia Highlights Lucrative Returns For Cloud Providers Using Nvidia GPUs

Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) is facing scrutiny as reports emerge of its advanced AI chips being smuggled into China despite U.S. export restrictions.
The underground market, driven by strong demand for these powerful chips, highlights the ongoing tech rivalry between the U.S. and China.
More than 70 distributors are openly advertising what they claim to be Nvidia&#8217;s restricted chips online, with many verified sellers confirming steady supplies, the Wall Street Journal <a target="_blank" href="https://www.wsj.com/tech/the-underground-network-sneaking-nvidia-chips-into-china-f733aaa6?mod=tech_lead_story" rel="noreferrer noopener">reports</a>.
Many sellers take preorders and promise delivery within weeks, indicating a robust supply chain.
Some even offer entire servers equipped with high-end Nvidia chips, costing up to $300,000. This network caters primarily to AI startups and research institutions in China, the WSJ report added.
Nvidia does not sell its powerful data center chips directly to customers but through third parties like Dell Technologies Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DELL#NYSE">DELL</a>) and Super Micro Computer Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>).
Resellers in China typically ask $32,400 for Nvidia&#8217;s H100 chip, significantly higher than the typical cost, the WSJ report claims.
An estimate suggests about 12,500 AI chips are smuggled annually, while Nvidia sold over 2.6 million A100 and H100 chips globally last year.
<a target="_blank" href="https://www.benzinga.com/news/24/06/39293929/whats-going-on-with-nvidia-amd-stocks-on-wednesday" rel="noreferrer noopener">Prior reports indicated</a> the U.S. government plans to extend its semiconductor technology embargo to Russia, following similar restrictions on China and the Middle East.
This decision stems from concerns that increased trade between China and Russia is helping Moscow bolster its military capabilities.
Previous sanctions on China led semiconductor companies to produce less effective chips to adhere to the restrictions.
China&#8217;s leading chip manufacturer, Semiconductor Manufacturing International Corp, is reportedly increasing its chip production using domestic tools.
<a target="_blank" href="https://www.benzinga.com/government/24/06/39227871/nvidias-ai-chip-has-a-tough-competitor-from-china-huaweis-latest-ascend-910b" rel="noreferrer noopener">Earlier reports highlighted</a> Tencent Holding Ltd&#8217;s (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) efforts to develop AI chips, aiming to capture part of Nvidia&#8217;s dominant market share, which accounts for up to 90% of China&#8217;s $7 billion AI chip market.
Nvidia stock gained over 189% in the last 12 months as U.S. Big Techs splurge on their AI ambitions. Investors can gain exposure to Nvidia through Vanguard Information Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>) and iShares S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVW#NYSE">IVW</a>).
Price Action: NVDA shares traded lower by 0.70% at $121.81 premarket at the last check on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock

DELL

SMCI

TCEHY

Despite Restrictions, Nvidia Chips Are Still Reaching China: WSJ

The semiconductor industry, led by Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), saw a redemption after <a target="_blank" href="https://www.benzinga.com/news/24/06/39524005/whats-going-on-with-nvidia-stock-on-thursday" rel="noreferrer noopener">a Thursday pullback</a>, reflecting an unabated artificial intelligence frenzy.
Meanwhile, key contract chipmaker Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) <a target="_blank" href="https://www.benzinga.com/government/24/06/39546561/whats-going-on-with-taiwan-semi-stock-on-friday" rel="noreferrer noopener">won government approval</a> for an additional $10.26 billion to finance the construction of its second fab in Kumamoto, Japan, and a second fab in Arizona using advanced process technologies.
TSMC's second Arizona fab will upgrade its process technology to 2 nanometers, and the second Kumamoto fab will produce chips ranging from 6-nanometer to 40-nanometer processes.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/28111726/newplot-42.png" alt="" class="wp-image-411307" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/28111726/newplot-42.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/28111726/newplot-42-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
The semiconductor industry had a fruitful week, with Nvidia chief Jensen Huang crediting its success in AI chips to a strategic bet over a decade ago and highlighting its "lowest total cost of ownership" at the shareholder meeting.
Also, <a target="_blank" href="https://www.benzinga.com/government/24/06/39525722/whats-going-on-with-taiwan-semi-stock-on-thursday" rel="noreferrer noopener">recent reports indicate</a> that TSMC is considering advanced chip packaging to capitalize on the AI surge. Nvidia and AMD, among other key customers, have nearly booked TSMC's 3nm process to full capacity through 2026.
Nvidia's stock has gained 205% in the last 12 months, and AMD's stock has gained 48%. Investors can gain exposure to Nvidia via the Vanguard Information Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>) and the iShares S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVW#NYSE">IVW</a>).
Price Actions: NVDA shares traded higher by 0.02% to $124.02 at the last check on Friday. AMD is up 2.15% at $162.90.
<h2 class="wp-block-heading">AMD Stock Prediction For 2024</h2>
When buying a stock for a longer time horizon, it is important for investors to assess where they think the stock is headed in the future.
When mapping a stock's future trajectory, investors should consider factors including the future earnings expectations and expected performance against a benchmark.
Advanced Micro Devices's revenue has grown at an average rate of 35.99% annually over the past 5 years. The average 1-year price target from analysts is $195.64, representing an expected 20.58% upside in 2025.
While past performance is not a guarantee of future results, investors should also look at a stock's historical performance when compared to both a benchmark index and the company's peers. Shares of Advanced Micro Devices have seen an annualized return of 22.35%, outperforming the S&amp;P500 index by 13.83%. This compares to 26.81% growth in the overall Information Technology sector. Advanced Micro Devices has a beta of 3.03.
Photo via Shutterstock

What's Going On With Nvidia And AMD Semiconductor Stocks On Friday?

Exchange-traded funds (ETFs) focused on growth equities &#8211; characterized by robust revenue growth, high valuations, and strong potential for innovation – experienced elevated <a href="https://www.benzinga.com/etfs">inflows in June.</a>
This surge in interest towards growth-linked funds coincided with a significant outperformance of growth over value stocks, reflecting increased investor confidence in the tech sector and disruptive innovations like artificial intelligence.
The eight largest growth-linked ETFs by assets under management (AUM) collectively experienced a substantial $12.2 billion in inflows from the beginning of the month through June 24.
Leading the pack, the Vanguard Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>) saw the highest monthly inflows among its peers, attracting an impressive $5.68 billion. This remarkable figure is set to mark the Vanguard Growth ETF&#8217;s record monthly inflows, ranking second in June only to the nearly $10 billion attracted by the broader iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>). 
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Growth ETF</th>
<th>AUM</th>
<th>June Flows (as of June 24)</th>
</tr>
</thead>
<tbody>
<tr>
<td>Vanguard Growth ETF </td>
<td>$139.84B</td>
<td>$5.68B</td>
</tr>
<tr>
<td>IShares Russell 1000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWF#NYSE">IWF</a>)</td>
<td>$97.00B</td>
<td>$0.03B</td>
</tr>
<tr>
<td>IShares S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVW#NYSE">IVW</a>)</td>
<td>$52.96B</td>
<td>$4.01B</td>
</tr>
<tr>
<td>Schwab U.S. Large-Cap Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHG#NYSE">SCHG</a>)</td>
<td>$30.62B</td>
<td>$0.44B</td>
</tr>
<tr>
<td>SPDR Portfolio S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPYG#NYSE">SPYG</a>)</td>
<td>$29.40B</td>
<td>$0.47B</td>
</tr>
<tr>
<td>Vanguard Mega Cap Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGK#NYSE">MGK</a>)</td>
<td>$22.39B</td>
<td>$1.08B</td>
</tr>
<tr>
<td>Vanguard Russell 1000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VONG#NYSE">VONG</a>)</td>
<td>$20.81B</td>
<td>$0.08B</td>
</tr>
<tr>
<td>IShares Core S&amp;P U.S. Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IUSG#NYSE">IUSG</a>)</td>
<td>$18.94B</td>
<td>$0.15B</td>
</tr>
<tr>
<td>Vanguard Small-Cap Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VBK#NYSE">VBK</a>)</td>
<td>$17.25B</td>
<td>$0.26B</td>
</tr>
</tbody>
<tfoot>
<tr>
<td>Total</td>
<td></td>
<td>$12.2B</td>
</tr>
</tfoot>
</table>
<figcaption class="wp-element-caption">Source: TradingView</figcaption></figure>
<h3 class="wp-block-heading">Growth Stocks Surge To Record Highs Against Value</h3>
The Vanguard Growth ETF&#8217;s relative performance against its counterpart, the Vanguard Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTV#NYSE">VTV</a>), set new record highs in June, surpassing the previous peaks achieved in November 2021, as illustrated in the chart below, <a href="https://www.benzinga.com/pro/register0524b?utm_source=BZprocontent062524&amp;t=be2bearmibe3na1">sourced from Benzinga Pro.</a>
The primary drivers of the growth style&#8217;s outperformance in June were tech giants Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), which saw robust rallies of 15% and 8.8%, respectively. 
<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/pro/register0524b?utm_source=BZprocontent062524&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="1024" height="460" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56-1024x460.png" alt="" class="wp-image-405212" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56-1024x460.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56-300x135.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56-768x345.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56-1536x690.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
Read Next:
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<li> <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39440559/growth-stocks-leave-value-stocks-in-the-dust-4-reasons-for-biggest-monthly-lead-in-">Growth Stocks Leave Value Stocks In The Dust: 4 Reasons For Biggest Monthly Lead In Over A Year</a></li>
</ul>
Image generated using artificial intelligence via Midjourney.

New ETFs

Markets

IUSG

SCHG

SPYG

VONG

Tech, AI Drive $12.2B Inflows Into Growth ETFs, Marking Record Outperformance Over Value

Overall, ETFs pulled in $12.8 billion in capital last week, pushing the year-to-date inflows to $324.7 billion. U.S. fixed-income ETFs led the way higher with $8.3 billion in inflows, followed by inflows of $1.8 billion in international equity ETFs and $1.8 billion in currency ETFs. 
Vanguard S&amp;P 500 ETF (ARCA:VOO), iShares S&amp;P 500 Growth ETF (ARCA:IVW), iShares Russell 2000 ETF (ARCA:IWM), Vanguard Total Stock Market ETF (ARCA:VTI) and iShares MSCI EAFE Growth ETF (BATS: <a class="ticker" href="https://www.benzinga.com/stock/efg#BATS">EFG</a>) dominated the top creation list last week. 
Wall Street wrapped up the last week with gains. The tech-heavy Nasdaq Composite Index outperformed, advancing 2.4%, while the S&amp;P 500 and Dow Jones Industrial Average booked gains of 1.3% and 0.3%, respectively. The gains were driven by the tech surge, especially NVIDIA (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>). The chipmaker surpassed Apple (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) in terms of market cap and became the second-most valuable company in the United States. 
Rate cut bets ramped up last week following the weak data, which signaled a slowdown in the world&#39;s largest economy. U.S. manufacturing activity slowed for the second straight month in May, and U.S. construction spending fell unexpectedly for the second consecutive month in April on declines in non-residential activity. 
However, a stronger jobs report diminished rate cut bet hopes to end the week, leading to a spike in Treasury yields. U.S. job growth jumped in May and wage growth accelerated. The economy added 272,000 jobs in May, above the Bloomberg expectation of 185,000 jobs, reflecting continued strong hiring in a range of sectors. 
We have detailed the ETFs below: 
Vanguard S&amp;P 500 ETF 
Vanguard S&amp;P 500 ETF topped the asset flow creation last week, gathering $11.9 billion in capital. It tracks the S&amp;P 500 Index and holds 504 stocks in its basket, each accounting for no more than 7% of the assets. Vanguard S&amp;P 500 ETF is heavy on the information technology sector, while financials, healthcare and consumer discretionary round off the next three spots with a double-digit allocation each. 
Vanguard S&amp;P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 4.4 million shares. It has AUM of $464 billion and a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook. 
iShares S&amp;P 500 Growth ETF 
iShares S&amp;P 500 Growth ETF has accumulated $3 billion in its asset base. It targets the growth segment of the S&amp;P 500 Index by tracking the S&amp;P 500 Growth Index. iShares S&amp;P 500 Growth ETF holds 228 stocks in its basket, with key holdings in information technology, consumer discretionary and communication. iShares S&amp;P 500 Growth ETF charges 18 bps in annual fees and has amassed $50 billion in its asset base. The fund trades in an average daily volume of 2 million shares and has a Zacks Rank #2 (Buy) with a Medium risk outlook. 
iShares Russell 2000 ETF 
iShares Russell 2000 ETF has accumulated $1.8 billion in its asset base. It is the largest and most popular ETF in the small-cap space, with an AUM of $60 billion and an average daily volume of 26 million shares. iShares Russell 2000 ETF holds well-diversified 1,937 stocks in its basket and has key holdings in industrials, financials, healthcare, information technology and consumer discretionary. 
iShares Russell 2000 ETF charges 19 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook. 
Vanguard Total Stock Market ETF 
Vanguard Total Stock Market ETF gathered $1.5 billion in capital. It provides exposure to the broader stock market by tracking the CRSP US Total Market Index. Vanguard Total Stock Market ETF holds a large basket of well-diversified 3,719 stocks with key holdings in technology, consumer discretionary, industrials, healthcare and financials. 
Vanguard Total Stock Market ETF charges 3 bps in fees per year from investors and trades in an average daily volume of 3 million shares. VTI has amassed $401 billion in its asset base and has a Zacks ETF Rank #2 with a Medium risk outlook. 
iShares MSCI EAFE Growth ETF 
iShares MSCI EAFE Growth ETF has pulled in $1.4 billion in capital, taking its total AUM to $13.9 billion. It offers exposure to a broad range of companies in Europe, Australia, Asia, and the Far East whose earnings are expected to grow at an above-average rate relative to the market. iShares MSCI EAFE Growth ETF follows the MSCI EAFE Growth Index and holds 327 stocks in its basket. Japanese firms make up 22.1% of the portfolio, while France and the United Kingdom round off the next two spots with double-digit exposure each. 
iShares MSCI EAFE Growth ETF charges 36 bps in annual fees and trades in an average daily volume of 323,000 shares. It has a Zacks ETF Rank #3 (Hold) with a Low risk outlook.
<a href="https://www.zacks.com/stock/news/2286800/5-most-loved-etfs-of-last-week?cid=CS-BENZ-FT-etf_news_and_commentary-2286800">To read this article on Zacks.com click here.</a>

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5 Most-Loved ETFs of Last Week

There are tons of interesting <a href="https://www.benzinga.com/topic/taxes">tidbits about Tax Day</a>. 
According <a href="https://www.irs.gov/newsroom/irs-delivers-strong-2024-tax-filing-season-expands-services-for-millions-of-people-on-phones-in-person-and-online-with-expanded-funding">to</a> the Internal Revenue Service (IRS):
<ul>
<li>Officers answered more than one million taxpayer phone calls this season.</li>
<li>They processed over 100 million individual tax returns through April 6.</li>
<li>Tens of millions more filings will be made on the April 15 deadline.</li>
<li>About 19 million taxpayers will file extensions due Oct. 15.</li>
<li>More than $200 billion in refunds were already delivered. </li>
<li>The average refund was $3,011 — a 4.6% increase from last April's average of $2,878.</li>
</ul>
These numbers change yearly, but there&#8217;s at least one fairly consistent Tax-Day trend: a jittery stock market. 
According to <a href="https://www.bankrate.com/investing/the-tax-season-effect/">Bankrate</a>, citing data from S&amp;P Global&#8217;s Kensho unit, the first couple weeks of April are typically &#8220;rougher.&#8221;
Many taxpayers will liquidate stocks or tap their money market funds to fulfill immediate cash requirements.
And from 2000 to 2016, the S&amp;P 500 Index declined an average 0.2% during the first two weeks before Tax Day.
After Tax Day, it&#8217;s a different scenario. The S&amp;P 500 usually bounces back to finish April about 1.7% higher on average (climbing &#8220;an astonishing&#8221; 75% of the time, Bankrate notes). 
Per <a href="https://money.com/stocks-could-rise-after-tax-day/">Money.com</a>, the S&amp;P 500 index enjoyed an average gain of 0.83% in the week following the tax deadline from 1998 to 2022 (for 19 out of 25 years). The one-week median gain throughout the year is 0.31%.
In April, the market&#8217;s overall impact is minimal. Investors would be wise to stick to their long-term investment strategy and prioritize contributing to tax-advantaged retirement accounts (i.e., <a href="https://www.benzinga.com/money/what-is-a-401k">401k plans</a> and <a href="https://www.benzinga.com/money/best-ira-accounts">IRAs</a>).
Historically, the S&amp;P 500 has yielded around 10 percent annual gains. The goal is to stay invested over time rather than attempting to time the market. 
Financial advisors typically suggest that their clients invest in S&amp;P 500 index funds (see below) and remain focused on distant future outcomes rather than short-term fluctuations.
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/23/04/31731464/post-easter-spy-market-action-analyzing-s-p-500-etfs-historical-performance-after-the-ho">SPDR S&amp;P 500 ETF</a> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)</li>
<li>iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>)</li>
<li>Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>)</li>
<li>iShares S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVW#NYSE">IVW</a>)</li>
<li>Invesco S&amp;P 500 Equal Weight ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSP#NYSE">RSP</a>)</li>
</ul>
Yardeni Research president Ed Yardeni predicts the S&amp;P 500 could surge <a href="https://www.benzinga.com/markets/equities/24/03/37724263/this-is-a-long-term-bull-market-market-expert-ed-yardeni-stands-by-his-5-400-year-end-s-p-500-ta">26% by 2026 to 6,500</a>.
"I think this is a long-term bull market,&#8221; the economist <a href="https://www.cnbc.com/video/2024/03/13/this-is-a-long-term-bull-market-says-ed-yardeni.html" target="_blank" rel="noreferrer noopener">told</a> CNBC in March. &#8220;I still got 5,400 by year-end and that was a pretty bold call a year ago, but right now that's looking pretty conservative, and why not more?"  
Now Read: <a href="https://www.benzinga.com/economics/macro-economic-events/24/04/38247125/retail-sales-rises-more-than-expected-in-march-indicate-strong-consumer-spending">Retail Sales Rises More Than Expected In March, Indicate Strong Consumer Spending</a>
Image: Shutterstock

Rydex ETF Trust Rydex S&P Equal Weight ETF

How Does The Stock Market Perform Ahead Of Tax Day? 'Rough' At First, Data Shows

The opening quarter of the year ended with U.S. equity indices marking the fifth consecutive month of gains, gold prices soaring to all-time highs and Bitcoin&#8216;s (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) market cap surging by over $500 billion in <a href="https://www.benzinga.com/topic/bitcoin">the past three months.</a>
The exchange-traded fund (ETF) market witnessed significant activity, with certain funds capturing substantial inflows, reflecting shifting investor sentiment.
A review of March&#8217;s ETF inflows uncovers a notable trend: two Bitcoin-related ETFs, launched just at the start of the year, have swiftly made their way into the top 10 for inflows. This rapid ascent highlighted a significant shift toward embracing cryptocurrency within mainstream investment strategies.
According to Canaccord Genuity, this &#8220;tailwind should persist&#8221; in the quarters to come as retail investors increasingly seek to incorporate Bitcoin ETFs into IRAs and other tax-favored accounts. 
&#8220;The anticipation is that spot ETFs will play a more pivotal role in influencing Bitcoin&#8217;s price dynamics in the future,&#8221; analysts said in a note. 
A Bank of America&#8217;s recent analysis revealed a shift in investor behavior, with ETF inflows surpassing single stock inflows for the first time in five weeks.
Here&#8217;s an in-depth look at the top 10 ETFs by inflows for March, providing a clear view of where investors are placing their bets.
<h1 class="wp-block-heading">March&#8217;s Top 10 ETF By Inflows: A Surprising Entry of Two Bitcoin Funds</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Rank</th>
<th>ETF Name</th>
<th>Inflows (USD)</th>
</tr>
</thead>
<tbody>
<tr>
<td>1</td>
<td>SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)</td>
<td>21.288 B</td>
</tr>
<tr>
<td>2</td>
<td>Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>)</td>
<td>8.294 B</td>
</tr>
<tr>
<td>3</td>
<td>iShares Bitcoin Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBIT#NASDAQ">IBIT</a>)</td>
<td>7.322 B</td>
</tr>
<tr>
<td>4</td>
<td>iShares S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVW#NYSE">IVW</a>) </td>
<td>4.808 B</td>
</tr>
<tr>
<td>5</td>
<td>iShares MSCI USA Quality Factor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QUAL#NYSE">QUAL</a>)</td>
<td>3.931 B</td>
</tr>
<tr>
<td>6</td>
<td>BlackRock U.S. Equity Factor Rotation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DYNF#NYSE">DYNF</a>)</td>
<td>3.597 B</td>
</tr>
<tr>
<td>7</td>
<td>Fidelity Wise Origin Bitcoin Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FBTC#NYSE">FBTC</a>)</td>
<td>3.018 B</td>
</tr>
<tr>
<td>8</td>
<td>iShares U.S. Treasury Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GOVT#NYSE">GOVT</a>)</td>
<td>2.783 B</td>
</tr>
<tr>
<td>9</td>
<td>Vanguard Total Stock Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTI#NYSE">VTI</a>) </td>
<td>2.693 B</td>
</tr>
<tr>
<td>10</td>
<td>Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)</td>
<td>2.682 B</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data: Tradingview</figcaption></figure>
Read Now: <a href="https://www.benzinga.com/markets/equities/24/04/38026629/alarming-rise-in-home-insurance-costs-expected-to-continue-into-2024-insurance-stock-etf-soars-t">Alarming Rise In Home Insurance Costs Expected To Continue Into 2024: Insurance Stock ETF Soars To All-Time Highs</a>
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Coverage of Bitcoin, Etherum, Ripple and all the latest digital currencies.

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Two Bitcoin-Related ETFs Shine In March's Top 10 Inflow Rankings: 'This Tailwind Should Persist,' Analysts Say

Apple Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>),&nbsp;Meta Platforms Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), and&nbsp;Google&#8217;s&nbsp;parent company&nbsp;Alphabet Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) are now under investigation by the European Union, according to its&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/03/37828545/meta-bows-down-to-eu-regulations-after-apple-and-google-cut-subscription-prices-for-ad-free-facebook" rel="noreferrer noopener">new Digital Markets Act</a>.
The announcement on Monday signifies the first batch of probes since the act&#8217;s recent enactment.
This comes from the U.S. Justice Department&#8217;s lawsuit against Apple for allegedly hindering competitors&#8217; ability to integrate with the iPhone, potentially increasing consumer prices, the Wall Street Journal&nbsp;<a target="_blank" href="https://www.wsj.com/tech/eu-launches-probes-into-apple-meta-google-under-new-digital-competition-law-4d383201" rel="noreferrer noopener">reports</a>.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/02/36987709/microsoft-negotiates-with-european-cloud-providers-to-avert-eu-antitrust-action" rel="noreferrer noopener">Microsoft Negotiates with European Cloud Providers to Avert EU Antitrust Action</a>
The investigations will focus on whether Apple and Google adhere to regulations mandating that they allow app developers to inform customers of alternative purchasing options outside their primary app stores.
The European Commission expresses concern over the limitations these tech giants may impose on developers&#8217; freedom to communicate with users and market their products.
Additionally, the EU plans to review alterations Google has implemented to display search results within Europe. The law prohibits companies from favoring their services over their competitors.
Another line of inquiry will examine Apple&#8217;s compliance with mandates for user-friendly software removal and default setting adjustments on iPhones, including providing choice screens for alternative search engines and browsers.
Meta&#8217;s &#8220;pay or consent&#8221; scheme, which requires European users who opt out of targeted ads on Instagram and Facebook to subscribe for a monthly fee, will also be scrutinized.&nbsp;
EU regulators have conflicted with major tech companies, imposing substantial fines on firms such as Google and&nbsp;Microsoft Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) for violating antitrust rules.&nbsp;
Microsoft attracted scrutiny for its alleged misuse of market power by integrating its Teams videoconferencing application with its Office suite.
Additionally, significant financial maneuvers, such as Microsoft&#8217;s $10 billion investment in OpenAI, the parent of ChatGPT,&nbsp;Amazon.Com Inc&#8217;s&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) $1.4 billion merger with&nbsp;IRobot Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IRBT#NASDAQ">IRBT</a>), and Adobe Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADBE#NASDAQ">ADBE</a>) $20 billion acquisition of Figma, have all been subject to review by EU authorities.
Last week&#8217;s reports indicated Meta slashed the subscription cost for its ad-free versions of Facebook and Instagram in Europe to 5.99 euros a month, down from the initial rate of 9.99 euros, to mitigate the concerns of privacy and antitrust authorities in the region.
This adjustment seeks to balance the requirements of EU privacy regulations and the Digital Markets Act&#8217;s rules on ad personalization.&nbsp;
Investors can gain exposure to the U.S. Big Tech stocks via&nbsp;Invesco QQQ Trust, Series 1&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) and&nbsp;IShares S&amp;P 500 Growth ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVW#NYSE">IVW</a>).
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/01/36609298/eu-cracks-down-on-tech-giants-apple-alphabet-and-qualcomm-in-regulatory-spotlight" rel="noreferrer noopener">EU Cracks Down on Tech Giants: Apple, Alphabet, and Qualcomm in Regulatory Spotlight</a>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: William Hook on Unsplash

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IRBT

Apple, Meta, and Google's Alphabet Under Scrutiny, EU Launches Antitrust Probes

To say Tesla Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>) has had a wild week would be an understatement. After ascending to almost $969 on Tuesday, the electric vehicle maker closed around $749 on Thursday. Even with that slide, the stock enters Friday up nearly 17% over the past week.
While plenty of articles have been written about exchange traded funds <a href="https://www.benzinga.com/trading-ideas/long-ideas/20/01/15116422/3-etfs-with-meaningful-tesla-exposure">with significant Tesla exposure</a>, it almost feels like heresy to discuss the fund&#39;s that are light on Elon Musk&#39;s company. But as <a href="https://www.cfraresearch.com/">CFRA Research</a> Director of ETF &amp; Mutual Fund Research Todd Rosenbluth points, some well-known ETFs have no exposure to shares of Tesla.
Here are some prominent examples.
Related: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/20/02/15272203/teslamania-runs-wild-now-what">Teslamania Runs Wild! Now What?</a>
<h3>SPDR S&amp;P 500 ETF (SPY)</h3>
It&#39;s not just the SPDR S&amp;P 500 ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spy#NYSE">SPY</a>). It&#39;s the Vanguard S&amp;P 500 ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/voo#NYSE">VOO</a>), the iShares Core S&amp;P 500 ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ivv#NYSE">IVV</a>) and any ETF that follows the S&amp;P 500 or a related index. As Rosenbluth notes, the reasoning behind this is simple.
&ldquo;The S&amp;P 500 Index requires a company to generate four consecutive quarters of positive GAAP earnings before the stock is eligible to be added following an index committee vote,&rdquo; he said. &ldquo;While TSLA reported GAAP EPS of $0.58 in the fourth quarter of 2019, pushing its string to two quarters, CFRA Equity Analyst Garrett Nelson highlights that Tesla announced a delay in vehicle deliveries from its recently-started China factory due to the coronavirus outbreak.&rdquo;
<h3>Consumer Discretionary Select Sector SPDR (XLY)</h3>
Plenty of folks think of Tesla as technology company and perhaps a time will come that it&#39;s moved to that sector, but for now, the company, like auto manufacturing stocks, resides in the consumer discretionary sector.
The Consumer Discretionary Select Sector SPDR (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xly#NYSE">XLY</a>), <a href="https://www.ssga.com/us/en/intermediary/etfs/funds/the-consumer-discretionary-select-sector-spdr-fund-xly">famous for its massive weight to</a> Amazon.com (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>), can&#39;t hold Tesla until meets the S&amp;P 500 profitability requirement because XLY&#39;s underlying index is essentially a representation of the S&amp;P 500 consumer cyclical constituency.
<h3>iShares S&amp;P 500 Growth ETF (IVW)</h3>
The iShares S&amp;P 500 Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ivw#NYSE">IVW</a>), as is the case with the aforementioned S&amp;P 500 ETFs, isn&#39;t alone in its exclusion. In addition to the iShares fund, several rivals track the S&amp;P 500 Growth Index and Tesla isn&#39;t yet part of that benchmark.
Based on Tesla&#39;s market value of almost $133 billion at Thursday&#39;s close, if the stock entered the S&amp;P 500 Growth Index tomorrow, it would be the third-largest consumer discretionary name in the benchmark, behind only Amazon and Home Depot (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hd#NYSE">HD</a>).
Rosenbluth has Overweight ratings on all of the ETFs mentioned here.

Long Ideas

Select Sector SPDR-Consumer Discretionary

3 Popular ETFs With No Tesla Exposure

Among the many asset classes that performed well in the first quarter were mid-cap stocks. In the first three months of the year, the S&amp;P MidCap 400 Index returned 14.8&nbsp;percent, beating the S&amp;P 500 by 140 basis points.
<h3>What Happened</h3>
While traditional mid-cap exchange traded funds topped large-cap rivals in the first quarter, the really impressive returns were delivered by mid-cap growth funds.
&ldquo;The often overlooked and under-allocated mid-cap growth fund category cranked out one of its rare high notes during the first three months of 2019, with an <a href="http://news.morningstar.com/fund-category-returns/mid-cap-growth/$FOCA$MG.aspx">18.4% return</a> that beat the eight other equity style boxes,&rdquo; <a href="https://www.investmentnews.com/article/20190402/FREE/190409976/how-mid-cap-growth-funds-owned-the-first-quarter">according to InvestmentNews</a>.
<h3>Why It&#39;s Important</h3>
The recent outperformance of mid-cap growth stocks highlights an interesting scenario with two mid-cap growth ETFs: the iShares S&amp;P Mid-Cap 400 Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ijk#NYSE">IJK</a>) and the Invesco S&amp;P MidCap 400 Pure Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rfg#NYSE">RFG</a>). IJK and RFG gained 15.9 percent and 15.6 percent, respectively, in the first quarter.
While the names of those ETFs imply some similarities, their underlying indexes are much different. The $7.64 billion IJK tracks the S&amp;P 400 MidCap Growth Index while the $500.30 million RFG follows the S&amp;P MidCap 400 Pure Growth Index.
In RFG&#39;s index, &quot;growth is measured by the following risk factors: sales growth, earnings change to price and momentum,&quot; <a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=RFG">according to Invesco</a>.
<h3>What&#39;s Next</h3>
Some market observers see attractive opportunity between the two mid-cap growth ETFs.
&quot;IJK has similar EPS growth estimates for 2019 and 2020 as the iShares S&amp;P 500 Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ivw#NYSE">IVW</a>) despite materially lower valuations,&quot; <a href="https://www.etfaction.com/">according to ETF Action.</a> &quot;RFG estimates are in a league of their own, but trade with similar multiples (likely because of lower trailing growth. If estimates hold, we expect RFG to outperform in the short to mid-term.&quot;
As ETF Action notes, sometimes these anomalies are attributable to sector-level differences. IJK three largest sector weights, in order, are technology, health care and industrials with that group combining for about half the fund&#39;s weight. RFG&#39;s top three sectors weights, in order, are health care, consumer discretionary and technology with that trio combining for over 51 percent of the Invesco ETF&#39;s roster.
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Rydex ETF Trust S&P Midcap 400 Pure Growth ETF

An Interesting Opportunity Is Brewing With Mid-Cap ETFs

Exchange traded funds dedicated to a single investment factor can take on sector bets that are often significantly larger than broad market funds.
Sector concentration is particularly prevalent in growth and value ETFs. The sectors that often dominate those funds are technology (growth) and financial services (value).
<h3>What To Know</h3>
Growth stocks have been trouncing their value rivals for over a decade due in large part to the global financial crisis taking a heavy toll on the financial services sector. While no sector was immune to the crisis, its aftermath was punitive for the financial services sector.
From 2014 through 2017, the S&amp;P 500 Technology Index outperformed the equivalent financial services index in three of four years and appears poised to do the same again this year.
&ldquo;Although the trend remains intact so far in 2018, a recent uptick in volatility left many investors wondering if value might be in line for a comeback,&rdquo; S&amp;P Dow Jones Indices said&nbsp;<a href="http://www.indexologyblog.com/2018/12/17/value-versus-growth-a-sector-perspective/">in a recent note</a>. &ldquo;Indeed, value outperformed in October and November as many growth-oriented stocks came under pressure from investors looking to take risk off the table. While it remains to be seen if this nascent trend is here to stay, historical sector exposures may be useful for assessing the relative prospects of growth and value.&rdquo;
<h3>Why It&#39;s Important</h3>
The iShares S&amp;P 500 Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ivw#NYSE">IVW</a>), which tracks the S&amp;P 500 Growth Index, devotes 31.52 percent of its weight to tech stocks. By comparison, the fund&#39;s second-largest sector weight, health care, represents just 18.12 percent of the fund&#39;s weight. Three of IVW&#39;s top 10 holdings are technology stocks. IVW has $20.41 billion in assets under management.
The $14.71 billion iShares S&amp;P 500 Value ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ive#NYSE">IVE</a>), which tracks the S&amp;P 500 Value Index, has a financial services weight of 22.31 percent. That&#39;s more than 1,000 basis points above its second-largest sector allocation, which is also health care.
Year-to-date, IVE is down almost 6 percent while IVW, the growth ETF, is up almost 3.6 percent.
<h3>What&#39;s Next</h3>
For over two decades, financials have loomed large in the value index while technology has dominated growth benchmarks. That sector&nbsp;exposure had significant impacts on returns attributable to growth and value stocks.
&ldquo;This result held across all three time frames, capturing 1) the run-up to the height of the Tech bubble (Jan. 1995 to Mar. 2000); 2) the subsequent bursting of that bubble and the run-up to the Global Financial Crisis (Apr. 2000 to Dec. 2007); and 3) the Global Financial Crisis and the most recent bull market in U.S. equities (Jan. 2008 to Nov. 2018),&rdquo; according to S&amp;P Dow Jones.
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/12/12856324/how-to-focus-on-a-hot-corner-of-the-reit-market">The Right REIT ETF Right Now</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/12/12849932/rethinking-global-fixed-income-strategies">A New Global Bond ETF</a>

These Sectors Dominate Growth, Value ETFs

Among individual investment factors, growth is proving sturdy this year. While some investors are waiting on a value resurgence, the iShares S&amp;P 500 Growth ETF (NYSE: <a class="ticker" href="/stock/ivw#NYSE">IVW</a>) is up more than 19 percent year to date, well ahead of the S&amp;P 500.
IVW, which tracks the S&amp;P 500 Growth Index, has rightfully earned its spot as <a href="https://newpublic.cfraresearch.com/">CFRA Research&#39;s</a> focus ETF for the month of October. CFRA rates IVW Overweight, the research firm&#39;s top rating given to exchange-traded funds.
The $19.1 billion IVW is one of the largest growth ETFs on the market. It holds 331 stocks, indicating that a significant portion of the S&amp;P 500 can be considered growth fare.
<h3>Calendar Favors IVW</h3>
Historical seasonal data indicate considering growth stocks early in the fourth quarter could be rewarding as November marks the start of the strongest six-month period for equities.
&ldquo;The November-April period that begins shortly has been a favorable one for growth-oriented strategies,&rdquo; said CFRA director of ETF &amp; mutual fund research Todd Rosenbluth in a note out Monday. &ldquo;According to Sam Stovall, chief investment strategist for CFRA, the S&amp;P 500 Growth index rose on average 6.7 percent in the period dating back to 1990, ahead of the 2.5 percent gain for the benchmark in the May-October period.&rdquo;
As is the case with many growth funds, IVW is highly allocated to the technology and consumer discretionary sectors. Those are the ETF&#39;s largest and third-largest sector weights, respectively, combining for about 52 percent of the fund&#39;s roster. Healthcare is IVW&#39;s second-largest sector exposure at 16.2 percent.
Related Link: <a href="https://www.benzinga.com/trading-ideas/long-ideas/17/10/10123238/tech-tempts-but-valuations-look-high">Tech Tempts, But It&#39;s Pricey</a>
<h3>High Beta Benefit </h3>
&ldquo;The S&amp;P 500 Growth index benefits in part we think from its relatively high exposure to cyclical sectors that also performed the best during this seasonal six-month period,&rdquo; said Rosenbluth.
IVW&#39;s top 10 holdings, which combine for about 29 percent of the ETF&#39;s weight, include familiar growth names such as Apple Inc. (NASDAQ: <a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>), Facebook Inc (NASDAQ: <a class="ticker" href="/stock/fb#NASDAQ">FB</a>), Amazon.com, Inc. (NASDAQ: <a class="ticker" href="/stock/amzn#NASDAQ">AMZN</a>) and Google parent Alphabet Inc (NASDAQ: <a class="ticker" href="/stock/goog#NASDAQ">GOOG</a>) (NASDAQ: <a class="ticker" href="/stock/googl#NASDAQ">GOOGL</a>).
While some actively managed growth funds are performing well this year, historical data indicate that is not typical over the long term.
&ldquo;In the three-year period ended June 2017, just 25 percent of actively managed large-cap growth mutual funds in the S&amp;P Dow Jones Index Versus Active Scorecard (SPIVA) outperformed the S&amp;P 500 Growth index,&rdquo; said Rosenbluth. &ldquo;On an equal-weighted basis, the 9.25 percent average gain among these 266 mutual funds lagged the index by 178 basis points.&rdquo;
Related Link: <a href="https://www.benzinga.com/trading-ideas/long-ideas/17/10/10118290/a-global-consumer-staples-idea">A Global Staples ETF</a>

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