Nvidia (NASDAQ:NVDA) has cemented its position as a powerhouse in various tech-focused exchange-traded funds (ETFs), despite recent setbacks. While its market cap recently dipped to $3 trillion, a significant correction by any measure, underestimating Nvidia’s continued growth potential due to its massive size would be akin to dismissing a racehorse just because it’s leading by a few lengths.

Size alone doesn’t seem to hinder growth for market leaders like Nvidia, especially in the era of artificial intelligence (AI). In a landscape where data is the new gold, the scale of a company like Nvidia could be the fuel that propels it even further ahead. As the S&P 500 tilts towards top-heaviness, the AI boom could push it into stratospheric heights.

Expect volatility to be a constant companion for NVDA stock. For investors seeking to temper this turbulence, an ETF with significant exposure to Nvidia might be a prudent choice. Let’s explore three ETFs that are heavily invested in NVDA shares.

Technology Select Sector SPDR Fund (NYSEARCA:XLK) has emerged as a compelling choice in the tech ETF landscape, particularly following a significant rebalancing of its top holdings.

While ETF rebalancing is often ho-hum, XLK stands out for its top-heaviness, even surpassing the Nasdaq 100. The fund is heavily concentrated in its top two holdings, with individual stakes typically below 5%. Currently, Microsoft and Nvidia collectively account for over 40% of XLK’s assets.

Despite the risk of overemphasizing Nvidia at the expense of Apple, whose weighting in XLK has shrunk, investors seem keen on ramping up their exposure to Nvidia. XLK offers a double serving of Nvidia and Microsoft shares, catering to the appetite for these tech titans.

The VanEck Robotics ETF (NASDAQ:IBOT) is another ETF significantly influenced by Nvidia. NVDA stock plays a substantial but not overwhelming role, typically occupying single-digit positions in the fund’s portfolio.

Investors are not only exposed to Nvidia but also to noteworthy semiconductor equipment manufacturers poised to benefit from automation in robotics. Moreover, the ETF includes lesser-known international players seeking to harness AI and automation in tangible ways.

With a more diversified approach than XLK, the IBOT ETF offers a broader play on robotics companies beyond the realm of Nvidia. This diversification is an attractive feature for cautious investors looking to mitigate concentration risk for a chance at substantial returns.

Market Fluctuations and the SMH ETF

The VanEck Semiconductor ETF (NASDAQ: SMH) has emerged as a go-to indicator for the overall health of the semiconductor sector. Over the course of this year, SMH shares have surged impressively by more than 53%.

Recently, much like the ups and downs of the NVDA stock, the SMH ETF experienced a slight downturn, retracting approximately 6.5% from its peak performance. However, such minor fluctuations are unlikely to cause concern, especially considering that the semiconductor industry is poised for sustained growth in the coming years.

Key Holdings in the SMH ETF

Despite its diversified exposure to 26 holdings, the SMH ETF shares a similarity with the XLK ETF in its significant focus on Nvidia, which accounts for more than 20% of the total ETF. Notably, Nvidia is the sole constituent with a weight exceeding 20% in SMH. Following Nvidia is Taiwan Semiconductor (NYSE: TSM) with a weight of 12.9% in the second position.

Investment Prospects with SMH and XLK

Both SMH and XLK ETFs present appealing opportunities for investors seeking an indirect means of investing in Nvidia and its industry counterparts. Depending on your approach to the tech market, either of these ETFs can offer unique and enticing possibilities for investment.

On the date of publication, Joey Frenette held shares of Apple and Microsoft. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.