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Silicon Valley Bank collapse: Which ETFs and stocks are impacted?

Several ETFs have exposure to Silicon Valley Bank, but it appears minimal.

The collapse of Silicon Valley Bank (SVB) sent shockwaves through markets. As the 16th largest bank in the US with a significant presence in the tech sector, publicly-listed companies with funds held at the bank were left in limbo.

While US regulators have since calmed the market by confirming Monday that no deposit holders would suffer losses, it remains the second biggest banking fail in US history and the consequences are likely still being untangled.

Dozens of exchange-traded funds (ETFs) hold shares of SVB’s parent company SVB Financial Group (NASDAQ: SIVB). Meanwhile, a number of US-listed companies hold funds directly at SVB.

Should ETF investors be worried?

Investors holding sector-based financial or cryptocurrency themed ETFs will have seen their portfolios dip. For instance the BlackRock Future Financial & Technology ETF (BPAY) fell nearly 6% following the news on Friday.

However the impact for broad-based index fund holders (typical ETFs) is likely to be minimal.

It’s worth remembering that ETFs typically passively track an index of many multiple stocks. Any one stock in an ETF portfolio tends to make up less than 1% of the total. In the case where a stock collapses, it’s usually replaced by another on the index.

S&P Indices have reportedly said Insulet Corp. (PODD) will replace SVB Financial Group in the S&P 500 index by Wednesday.

The following are ETFs with the most exposure to SVB Financial, according to ETF.com. Data is accurate as of March 14, 2023.

5 ETFs with the most exposure to Silicon Valley Bank

1. BlackRock Future Financial & Technology ETF (BPAY)

2. SPDR S&P Regional Banking ETF (KRE)

3. Motley Fool Mid Cap Growth ETF (TMFM)

4. Virtus Terranova U.S. Quality Momentum ETF (JOET)

5. SPDR S&P Bank ETF (KBE)

5 stocks with funds held at Silicon Valley Bank

The following are stocks of companies that have filed public documents revealing their exposure to SVB. There are hundreds of firms that bank with SVB and these are some of the more well-known of those.


Roblox

1. Roblox (RBLX)

  • Market cap: $26.04 billion*
  • A Roblox filing revealed that it held around 5% of its $3 billion in cash and securities at SVB as of February 28, 2023.

Rocket Lab USA

2. Rocket Lab USA, Inc. (RKLB)

  • Market cap: $1.86 billion*
  • According to a filing from Rocket Lab USA, the company held $38 million in cash at SVB, which represented 7.9% of its total cash as of December 31, 2022.

Roku

3. Roku, Inc (ROKU)

  • Market cap: $8.65 billion*
  • Roku stated in a filing that it had approximately $487 million held at SVB, which represented about 26% of its cash and cash equivalents as of March 10, 2023. It held the remaining balance of $1.4 billion across other large financial institutions.

Etsy

4. Etsy (ETSY)

  • Market cap: $12.82 billion*
  • Etsy has warned sellers that the collapse of SVB has resulted in processing payment delays, according to an email from the company shared with NBC News.

Lemonade

5. Lemonade (LMND)

  • Market cap: $947.35 million*
  • Lemonade advised in a recent filing that it holds just $7,000 in cash with SVB and was not impacted by the bank’s collapse.

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Written by

Kylie Purcell

Kylie Purcell is the senior investments editor at Finder. She has a background in business and finance news with previous roles at SBS, Your Money, TVNZ, Switzer Group and The Adviser magazine. Kylie has a Masters in International Journalism and a Graduate Diploma in Economics. When she's not writing about the markets you can find her bingeing on coffee. " See full profile

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