If you’re a fan of the “magnificent seven,” one exchange-traded fund you’ll want to consider is the Roundhill Magnificent Seven ETF (NASDAQ:MAGS). As the name suggests, this stock gives you exposure to these top tech stocks.
The top holdings in the fund are as follows:
· Nvidia (NASDAQ:NVDA): 18.3%,
· Meta Platforms (NASDAQ:META): 17.1%,
· Amazon (NASDAQ:AMZN): 14.4%,
· Microsoft (NASDAQ:MSFT): 14.4%,
· Alphabet (NASDAQ:GOOG): 13.5%,
· Apple (NASDAQ:AAPL): 12.7%, and
· Tesla (NASDAQ:TSLA): 9.4%
Rather than owning each one of the stocks individually, investors can easily gain exposure to them through just this single ETF. The downside is that at 0.29%, the expense ratio is a bit high given the lack of diversification the fund offers, although it shouldn’t derail the overall returns.
The fund launched in April 2023 and thus far has proven to be a solid investment, generating returns of around 50% since then, which is better than the 22% gains investors would have earned from simply investing in the S&P 500.
For long-term investors who remain bullish on these stocks, this ETF can simplify their investing strategies. While the danger is that with each of these stocks accounting for a significant portion of the overall portfolio there is the possibility that one bad performance can weigh on the fund, in the long haul, these should still be solid investments to hang on to.
This fund may not be suitable for investors looking to minimize their risk as this is a tech-heavy fund, but if you like the “magnificent seven” and want an easy way to invest in all of them, the RoundHill Magnificent Seven fund is a great option to consider for your portfolio.
