Your S&P 500 fund holds US$6,390 of Nvidia per US$100,000. What a 30% fall costs five common mixes, and the tax on trimming before 31 December
Jensen Huang's exit has left millions of American index investors holding a large stake in a company with an interim chief executive and results due on Tuesday. VNN worked out how much Nvidia sits inside five common fund mixes, what an 11%, 16% or 30% fall costs each one, and what trimming costs in federal tax at four income levels before the 31 December cut-off. It ends with the wash-sale trap that can wipe out a tax loss for good, and a checklist.
On 11 November, the day before Jensen Huang resigned, Nvidia made up 6.39% of the largest S&P 500 exchange-traded fund. Only Apple was bigger. For anyone whose 401(k), IRA or brokerage account tracks the S&P 500, that is US$6,390 of every US$100,000 riding on one company. It now has an interim chief executive, a board investigation, an FBI inquiry and a class action, and on Tuesday it reports its quarterly results.
This report does the sums a quick search will not. It shows how much Nvidia sits in five common fund mixes, which reach as high as US$11,070 per US$100,000. It puts a dollar figure on an 11%, 16% and 30% fall for each mix. It sets out the federal tax on trimming at four income levels using the IRS’s 2026 thresholds, and covers the wash-sale fine print, which treats an IRA purchase more harshly than most investors expect. It ends with a checklist to take to your plan provider or tax preparer before 31 December.
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