Nvidia Surpasses Apple as Largest Holding in Vanguard S&P 500 ETF

Nvidia has surpassed Apple as the largest holding in the Vanguard S&P 500 ETF, accounting for 7.50% of its assets. This is a significant shift from just two years ago when Nvidia first passed Apple's market value on June 5, 2024.

The fund's top five positions, including Microsoft and Amazon, add up to nearly 28% of its $1.05 trillion in assets. This concentration of holdings has raised questions about the true nature of an index fund, which promises diversification but often prioritizes a handful of AI-linked giants.

Nvidia's growth has been remarkable, with its revenue increasing by 85% year over year to $81.6 billion in its most recent fiscal quarter. The market has responded accordingly, swelling the company's value and further concentrating the fund's holdings.