Nvidia 's blistering rally will force a major technology exchange-traded fund to acquire more than $10 billion worth of shares of the chip giant while cutting dramatically back on Apple .
The index that the Technology Select Sector SPDR Fund (XLK) follows will soon rebalance, based on an adjusted market cap value from Friday's close.
As a result, Microsoft and Nvidia will likely have a weight of around 21%, while Apple will fall sharply to about 4.5%, Bartolini said.
That is a change from the prior weightings, which saw Nvidia's weight be kept artificially low by index rules.
As of June 14, Microsoft and Apple were both at about 22% each in the fund, while Nvidia was just 6%.
Persons:
Matthew Bartolini, Bartolini
Organizations:
Nvidia Corporation, Nvidia, Apple, Microsoft, SPDR, SPDR Americas Research
Locations:
Taipei, Taiwan, SPDR Americas