Nvidia, Amazon, Tesla Among Tech Stocks Hedge Funds Are Piling Into — Here's How ETFs Like IVV, SPY, VOO Are Riding The Wave

The world’s biggest hedge funds are making some eyebrow-raising moves and they’re laser-obsessed with one thing: Big Tech. Based on the most recent 13F filings, institutional investors and hedge funds poured billions into big tech stocks such as Nvidia NVDA, Microsoft MSFT, Amazon AMZN, Tesla TSLA and Apple AAPL during the last quarter. Even ETFs themselves, like the iShares Core S&P 500 ETF IVV, experienced big inflows of more than $21 billion.

So what does it all mean for average investors? Two things:

• The pros remain highly optimistic about tech.
• By investing in the right ETFs, individual investors can achieve similar exposure without the hedge fund-sized balance sheet.

Follow The Smart Money

While the headlines tend to flow to the likes of BlackRock, Vanguard or Millennium Management, individual investors have access to the same mega-cap tech surge through ETFs.

Here’s a rundown of some of those top stocks against recent fund inflows:

In the meantime, IVV, an S&P 500 exchange-traded fund, was one of the largest, gaining more than $21.36 billion with Capula Management and Millennium taking the lead.

ETFs That Follow The Hedge Fund Tech Bounce

Here are a few ETFs individual investors can look to access the same themes:

IVV, VOO, SPY – Timeless S&P 500 Exposure

Apart from IVV, the Vanguard S&P 500 ETF VOO and the SPDR S&P 500 ETF SPY are filled with the same big-name tech stocks that hedge funds adore. Microsoft, Apple, Nvidia, Amazon, Alphabet GOOGL, and Meta META comprise the heaviest weightings. Notably, VOO has garnered $82 billion in inflows this year as of May 18, indicating strong demand.

QQQ, QQQM – Growth-Oriented & Technology-Laden

Following the Nasdaq-100, Invesco QQQ Trust QQQ and Invesco NASDAQ 100 ETF QQQM provide leveraged exposure to the largest names in tech, including the leaders of the AI revolution.

XLK, VGT – Technology-Sector Focused

Technology Select Sector SPDR Fund XLK and Vanguard Information Technology ETF VGT. These sector-specific ETFs are best for those seeking a cleaner play in the space. XLK, for example, has more than 40% of its assets in MSFT and AAPL combined.

Why The Sprint?

A number of tailwinds are driving this hedge fund tech wave:

AI Arms Race: Hedge funds are wagering big that the AI revolution is only just beginning.

Earnings Resilience: Big Tech has shown remarkable stability and earnings growth amid rate hikes.

Cloud & Infrastructure Demand: Enterprise spending is ramping back up in areas dominated by Microsoft, Amazon and Alphabet.

Even ETFs like IVV, typically seen as broad-market plays, are riding this trend thanks to their tech-heavy weightings.

Hedge funds weren’t hoarding Big Tech with deep pockets, so retail investors don’t have to watch from the sidelines. One can create a diversified, tech-heavy portfolio with a few clicks using ETFs, and a lot less cash.

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