WISE ETF Underperforms, Struggles to Keep Up with NVIDIA
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 19 2026
0mins
Source: Yahoo Finance
- WISE ETF Performance: The WISE ETF is down 4% year-to-date and up 14.6% over the past year, significantly trailing NVIDIA's 18% YTD gain and 62% annual increase, indicating poor weight allocation between profitable giants and unprofitable software firms.
- Investor Return Gap: Investors choosing WISE in 2025 received only a fraction of NVIDIA's returns, as the fund's promise of exposure to generative AI companies is undermined by the drag from money-losing startups within its portfolio.
- Strong Performance of NVIDIA and AMD: NVIDIA reported Q4 FY2026 revenue of $68.13 billion, up 73% year-over-year, while AMD's revenue for the same quarter was $10.25 billion, up 38%, highlighting robust demand and profitability in the hardware sector, which further emphasizes WISE's portfolio disadvantages.
- Deteriorating Financials of Software Firms: Companies like BigBear.AI and Gorilla Technology within WISE's holdings are unprofitable and growing slowly, making their valuation multiples appear unrealistic, reflecting a declining market confidence in speculative software names.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy NVDA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 204.650
Low
200.00
Averages
264.97
High
352.00
Current: 204.650
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Amazon's Cloud Services Accelerate Growth Amid Market Volatility
- Cloud Revenue Growth: Amazon's first-quarter AWS revenue rose 28% year-over-year to $37.6 billion, marking its fastest growth in 15 quarters, indicating strong competitive positioning in the cloud market and expected to further boost overall company performance.
- AI-Driven Profit Enhancement: AWS's AI revenue has reached an annual run rate of $15 billion, with a backlog of $364 billion, demonstrating that investments in artificial intelligence are significantly enhancing profitability and driving overall operating margin to a record 13.1%.
- Capital Expenditure Plans: Amazon plans to invest approximately $200 billion by 2026, with $43.2 billion spent in the first quarter primarily on AWS and AI expansion, which has led to a substantial decline in free cash flow, yet management views this as a necessary investment to seize market opportunities.
- In-House Chip Design Advantage: Amazon's custom chips now run at an annual revenue rate exceeding $20 billion, up nearly 40% from the previous quarter, allowing the company to reduce reliance on external suppliers, which is expected to save tens of billions in capital expenditures while enhancing AWS's margins.
See More
AI-Driven Memory ETF Surges Amid Shortage
- ETF Performance: The Roundhill Memory ETF has surged 156% since its launch on April 2, 2026, driven by a memory shortage fueled by AI demand, making it an attractive option for investors.
- Low Investment Threshold: With a trading price around $72, a $100 investment allows for over 1.25 shares of the Roundhill Memory ETF, significantly lowering the barrier for entry into the memory market for small investors.
- Transparent Fee Structure: The ETF has an expense ratio of 0.65%, which, while higher than most index funds, remains reasonable compared to other thematic ETFs, prompting investors to weigh fees against potential returns.
- Risk Management: By focusing solely on memory companies, the Roundhill Memory ETF mitigates concentration risk associated with other semiconductor firms, making it a suitable choice for investors already holding major stocks like Nvidia, thus providing diversified investment opportunities.
See More
Analysis of Why Vanguard S&P 500 ETF is Popular
- Market Benchmark Advantage: The S&P 500 index includes companies with a market cap of at least $22.7 billion, and due to its stringent profitability requirements, it has historically favored growth companies, providing investors with stable returns and lower risk over time.
- ETF Size Growth: The Vanguard S&P 500 ETF has ballooned to $1.7 trillion in total net assets, making it the largest ETF globally, reflecting investors' strong recognition of its low cost and reliability, which further drives capital inflows into the market.
- Growth ETF Performance: The Vanguard S&P 500 Growth ETF has achieved an annualized return of 17.2% since inception, outperforming the S&P 500 ETF over the past decade, and while it carries higher risk, it is positioned to deliver significant capital appreciation during bull markets.
- Investor Confidence: Although the Vanguard S&P 500 Growth ETF was not recommended by The Motley Fool as a top investment choice currently, its long-term growth potential and market performance continue to attract significant investor interest, indicating a sustained market appetite for growth-oriented investments.
See More
Abbott's Q2 Earnings Preview and Growth Drivers
- Diversified Business Structure: Abbott operates across four major segments: medical devices, diagnostics, nutrition, and established pharmaceuticals, with Q1 2023 medical device revenue reaching $5.5 billion, accounting for about 50% of total sales, which has helped the company remain resilient in changing healthcare environments.
- Diabetes Care Growth: Abbott's FreeStyle Libre continuous glucose monitoring platform generated approximately $2 billion in Q1 sales, with over 7 million users globally, and as the number of diabetes patients is expected to exceed 850 million by 2050, Abbott has significant growth potential in this area.
- Cardiovascular Business Contribution: Abbott's cardiovascular segment generated about $578 million in Q1 revenue, and with an aging population, analysts expect this market to expand significantly over the next decade, with Abbott's MitraClip and TriClip products helping to capture this growing share.
- Stable Revenue Sources: Abbott's diagnostics and nutrition segments produced approximately $2.1 billion and $2 billion in Q1 sales, respectively, with brands like Ensure and Similac providing steady revenue streams that help offset fluctuations in other areas of the business.
See More
Home Depot Reports $41.8 Billion Revenue in Q1 2026
- Strong Revenue Performance: Home Depot reported $41.8 billion in revenue for Q1 2026 (ending May 3), solidifying its leadership in the home improvement market, which directly benefits investors through consistent income.
- Attractive Dividend Returns: The company pays a quarterly dividend of $2.33 per share, totaling $9.32 annually, requiring investors to hold 1,073 shares to generate $10,000 in yearly dividends, showcasing a 2.77% yield that significantly exceeds the S&P 500 index.
- Consistent Dividend Record: With 157 consecutive quarters of dividend payments, exceeding 39 years, Home Depot demonstrates a strong commitment to shareholders, appealing to market participants seeking reliable income streams.
- Macro Environment Challenges: Despite facing headwinds from high inflation and rising interest rates that have softened same-store sales trends, the company's ability to continue returning capital to investors indicates a robust financial position.
See More
SpaceX Stock Fluctuations Capture Market Attention
- Price Peaks and Declines: On June 16, SpaceX's stock reached an intraday high of $225.29, briefly pushing its market cap to $2.97 trillion, but by June 18, it had fallen to $2.36 trillion, indicating increased market volatility.
- Financial Performance Comparison: SpaceX reported a net loss of $8.69 billion on revenues of $19.3 billion over the past year, reflecting a challenging financial landscape despite income from rocket launches and Starlink operations, which may undermine investor confidence.
- Valuation Level Analysis: Currently, SpaceX's price-to-sales ratio stands at 125x, significantly higher than Nvidia's 20x, indicating a potential overvaluation that could lead to future stock price corrections, necessitating caution among investors.
- Market Competition Landscape: As SpaceX faces intensified competition from giants like Amazon, the uncertainty surrounding its future growth is palpable, especially after the integration of AI and social media businesses, with profitability remaining a critical challenge.
See More
Amazon's Cloud Services Accelerate Growth Amid Market Volatility
- Cloud Revenue Growth: Amazon's first-quarter AWS revenue rose 28% year-over-year to $37.6 billion, marking its fastest growth in 15 quarters, indicating strong competitive positioning in the cloud market and expected to further boost overall company performance.
- AI-Driven Profit Enhancement: AWS's AI revenue has reached an annual run rate of $15 billion, with a backlog of $364 billion, demonstrating that investments in artificial intelligence are significantly enhancing profitability and driving overall operating margin to a record 13.1%.
- Capital Expenditure Plans: Amazon plans to invest approximately $200 billion by 2026, with $43.2 billion spent in the first quarter primarily on AWS and AI expansion, which has led to a substantial decline in free cash flow, yet management views this as a necessary investment to seize market opportunities.
- In-House Chip Design Advantage: Amazon's custom chips now run at an annual revenue rate exceeding $20 billion, up nearly 40% from the previous quarter, allowing the company to reduce reliance on external suppliers, which is expected to save tens of billions in capital expenditures while enhancing AWS's margins.
See More
AI-Driven Memory ETF Surges Amid Shortage
- ETF Performance: The Roundhill Memory ETF has surged 156% since its launch on April 2, 2026, driven by a memory shortage fueled by AI demand, making it an attractive option for investors.
- Low Investment Threshold: With a trading price around $72, a $100 investment allows for over 1.25 shares of the Roundhill Memory ETF, significantly lowering the barrier for entry into the memory market for small investors.
- Transparent Fee Structure: The ETF has an expense ratio of 0.65%, which, while higher than most index funds, remains reasonable compared to other thematic ETFs, prompting investors to weigh fees against potential returns.
- Risk Management: By focusing solely on memory companies, the Roundhill Memory ETF mitigates concentration risk associated with other semiconductor firms, making it a suitable choice for investors already holding major stocks like Nvidia, thus providing diversified investment opportunities.
See More
Analysis of Why Vanguard S&P 500 ETF is Popular
- Market Benchmark Advantage: The S&P 500 index includes companies with a market cap of at least $22.7 billion, and due to its stringent profitability requirements, it has historically favored growth companies, providing investors with stable returns and lower risk over time.
- ETF Size Growth: The Vanguard S&P 500 ETF has ballooned to $1.7 trillion in total net assets, making it the largest ETF globally, reflecting investors' strong recognition of its low cost and reliability, which further drives capital inflows into the market.
- Growth ETF Performance: The Vanguard S&P 500 Growth ETF has achieved an annualized return of 17.2% since inception, outperforming the S&P 500 ETF over the past decade, and while it carries higher risk, it is positioned to deliver significant capital appreciation during bull markets.
- Investor Confidence: Although the Vanguard S&P 500 Growth ETF was not recommended by The Motley Fool as a top investment choice currently, its long-term growth potential and market performance continue to attract significant investor interest, indicating a sustained market appetite for growth-oriented investments.
See More
Abbott's Q2 Earnings Preview and Growth Drivers
- Diversified Business Structure: Abbott operates across four major segments: medical devices, diagnostics, nutrition, and established pharmaceuticals, with Q1 2023 medical device revenue reaching $5.5 billion, accounting for about 50% of total sales, which has helped the company remain resilient in changing healthcare environments.
- Diabetes Care Growth: Abbott's FreeStyle Libre continuous glucose monitoring platform generated approximately $2 billion in Q1 sales, with over 7 million users globally, and as the number of diabetes patients is expected to exceed 850 million by 2050, Abbott has significant growth potential in this area.
- Cardiovascular Business Contribution: Abbott's cardiovascular segment generated about $578 million in Q1 revenue, and with an aging population, analysts expect this market to expand significantly over the next decade, with Abbott's MitraClip and TriClip products helping to capture this growing share.
- Stable Revenue Sources: Abbott's diagnostics and nutrition segments produced approximately $2.1 billion and $2 billion in Q1 sales, respectively, with brands like Ensure and Similac providing steady revenue streams that help offset fluctuations in other areas of the business.
See More
Home Depot Reports $41.8 Billion Revenue in Q1 2026
- Strong Revenue Performance: Home Depot reported $41.8 billion in revenue for Q1 2026 (ending May 3), solidifying its leadership in the home improvement market, which directly benefits investors through consistent income.
- Attractive Dividend Returns: The company pays a quarterly dividend of $2.33 per share, totaling $9.32 annually, requiring investors to hold 1,073 shares to generate $10,000 in yearly dividends, showcasing a 2.77% yield that significantly exceeds the S&P 500 index.
- Consistent Dividend Record: With 157 consecutive quarters of dividend payments, exceeding 39 years, Home Depot demonstrates a strong commitment to shareholders, appealing to market participants seeking reliable income streams.
- Macro Environment Challenges: Despite facing headwinds from high inflation and rising interest rates that have softened same-store sales trends, the company's ability to continue returning capital to investors indicates a robust financial position.
See More
SpaceX Stock Fluctuations Capture Market Attention
- Price Peaks and Declines: On June 16, SpaceX's stock reached an intraday high of $225.29, briefly pushing its market cap to $2.97 trillion, but by June 18, it had fallen to $2.36 trillion, indicating increased market volatility.
- Financial Performance Comparison: SpaceX reported a net loss of $8.69 billion on revenues of $19.3 billion over the past year, reflecting a challenging financial landscape despite income from rocket launches and Starlink operations, which may undermine investor confidence.
- Valuation Level Analysis: Currently, SpaceX's price-to-sales ratio stands at 125x, significantly higher than Nvidia's 20x, indicating a potential overvaluation that could lead to future stock price corrections, necessitating caution among investors.
- Market Competition Landscape: As SpaceX faces intensified competition from giants like Amazon, the uncertainty surrounding its future growth is palpable, especially after the integration of AI and social media businesses, with profitability remaining a critical challenge.
See More
