03:12 PM EDT, 06/17/2024 (MT Newswires) -- Nvidia's ( NVDA ) weighting in the index that the Technology Select Sector SPDR (XLK) exchange-traded fund follows will likely increase to around 21%, displacing Apple ( AAPL ) as the second top pick next to Microsoft (MSFT), CNBC reported Monday.

Apple's ( AAPL ) weighting will drop significantly to 4.5% from about 22% while Nvidia ( NVDA ) is set to rise sharply from just 6% amid Nvidia ( NVDA ) shares' outperformance this year, the report said, citing Matthew Bartolini, head of SPDR Americas Research.

The major technology ETF will be forced to acquire more than $10 billion worth of Nvidia ( NVDA ) shares while cutting back dramatically on Apple ( AAPL ), the report said.

SPDR does not comment on specific trading strategies around rebalances, the report said.

The fund did not immediately reply to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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