If you own an ETF tracking the S&P 500 or the Nasdaq-100, the Magnificent Seven are unavoidable.
The Defiance Large Cap ex-Mag 7 ETF (NASDAQ:XMAG) and the Roundhill Magnificent Seven ETF (NASDAQ:MAGS) are photographic negatives of one another.
Roundhill Magnificent Seven Covered Call ETF (MAGY) is a covered call ETF that primarily holds MAGS while writing short-term call options on the underlying ETF. The fund distributes payouts weekly. MAGY underperformed its core holding MAGS over the past year, with fund's option-writing book generating net losses during FY25, while investors additionally incurring additional expense drags. A large portion of FY25 distributions came through return of capital, raising concerns regarding NAV sustainability and distribution quality, while also undermining income predictability.
Stocks are aloft—and on the climb.
Tech earnings strength and rising estimates signal resilience, making tech ETFs attractive despite weak sentiment and geopolitical concerns.
The S&P 500 is down nearly 3% year-to-date, yet three widely held tech ETFs are quietly telling a different story.
The Mag Seven ETF is lagging behind small-caps and equal-weight tech. It would be a mistake, though, to count out tech's heavyweights.
Magnificent 7 earnings are heating up as Apple, Microsoft, Meta and Tesla report, putting AI strategy, valuations and Mag-7 ETFs in the spotlight.
The Magnificent Seven have been running out of fuel well before we rang in the new year.
The S&P 500 is the most well-known benchmark, and buying an ETF focused on this index could have yielded good long-term returns.
I am upgrading Roundhill Magnificent Seven ETF (MAGS) to a "Buy," citing robust EPS growth trends into 2026. MAGS offers equal-weight exposure to the Magnificent Seven, with strong recent momentum and improved fundamentals despite recent volatility. The Mag 7 group is forecasted to deliver 23% EPS growth in 2026, outpacing the S&P 500 ex-Mag 7 by 12 percentage points.
Mega-cap growth stocks have been some of the top performers in the stock market. The Roundhill Magnificent Seven ETF (BATS:MAGS) contains the seven largest publicly traded corporations, and that fund has regularly outperformed the S&P 500 since its inception.