Nvidia and Meta Drive Large-Cap Growth Fund Success with 15.2% Increase in 2023

US stock mutual funds and ETFs rose by 7.2% in Q3, boosting year-to-date returns to nearly 11%. Nvidia and Meta have significantly contributed to large-cap growth funds, with a 15.2% increase in 2023. Market optimism is driven by declining interest rates, robust corporate earnings, and AI expansion. Despite caution about potential October volatility, the overall market environment remains positive.

US stock mutual funds and ETFs rose by 7.2% in the third quarter, boosting year-to-date returns to nearly 11%. This robust performance was fueled by significant contributions from large-cap growth funds, particularly NVIDIA and Meta, which saw a 15.2% increase in 2023. The market's optimism is rooted in declining interest rates, robust corporate earnings, and the expanding AI sector.

Key Contributors to Q3 Growth

NVIDIA Corporation (NASDAQ:NVDA) has been a significant driver of large-cap growth funds. The company's stock has seen substantial buying activity from institutional investors and hedge funds. For instance, Charter Capital Management LLC DE purchased 2,240 shares of NVIDIA during the second quarter, valued at approximately $354,000 Charter Capital Management LLC DE Purchases Shares of 2,240 NVIDIA Corporation $NVDA^[1]. Additionally, several other institutional investors have increased their holdings in NVIDIA, reflecting confidence in the company's growth prospects. Despite insider selling, such as Director Persis Drell selling 40,000 shares Charter Capital Management LLC DE Purchases Shares of 2,240 NVIDIA Corporation $NVDA^[1], the overall sentiment remains positive.

Meta Platforms, Inc. (NASDAQ:META) also contributed to the growth of large-cap funds. The company's stock has shown resilience despite regulatory challenges and market volatility. The AI sector's expansion has been a key factor in driving market optimism, as seen in the recent growth of BigBear.ai (BBAI), which has positioned itself as a leader in AI-driven defense solutions AI stock under $10 surges on defense deal optimism^[2].

Market Environment and Outlook

The market's positive environment is supported by declining interest rates, which have made borrowing cheaper for companies and consumers. Robust corporate earnings have also bolstered investor confidence. The Federal Reserve's interest rate cuts have provided a tailwind for stock markets, and the AI sector's growth has further fueled market optimism.

Despite these positive factors, some caution is advised regarding potential volatility in October. Market participants should remain vigilant and monitor economic indicators and geopolitical developments that could impact stock prices.

Conclusion

The third quarter's strong performance by U.S. stock mutual funds and ETFs, particularly large-cap growth funds, underscores the resilience and growth potential of the market. The expansion of the AI sector and robust corporate earnings have been key drivers of this performance. While caution is advised regarding potential volatility, the overall market environment remains positive, driven by declining interest rates and robust corporate earnings.

References

Charter Capital Management LLC DE Purchases Shares of 2,240 NVIDIA Corporation $NVDA^[1] https://www.marketbeat.com/instant-alerts/filing-charter-capital-management-llc-de-purchases-shares-of-2240-nvidia-corporation-nvda-2025-10-05/
AI stock under $10 surges on defense deal optimism^[2] https://www.thestreet.com/markets/should-you-invest-in-this-ai-stock-under-10-