MAGS Is Treading Water This Year. Here's Why the Smartest Investors Are Still Buying.
The ETF invests only in "Magnificent Seven" stocks.
Overview
The "Magnificent Seven" stocks have been the driving force behind the market's current bull market. Right near the beginning of the bull market in April of 2023, Roundhill Financial launched an exchange-traded fund (ETF) that sought to capitalize on the strength of these seven magnificent megacaps -- Nvidia (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG), Meta (NASDAQ: META), Amazon (NASDAQ: AMZN), and Tesla (NASDAQ: TSLA).
The Roundhill Magnificent Seven ETF (NYSEMKT: MAGS) became the first ETF to invest solely in these seven stocks. And it's had a great run the past three years, returning 55% on an annualized basis in 2023, 62% in 2024, and 21% in 2025. It has a three-year annualized return of 31% as of Aug. 25.
Details
But this year has been a different story. The ETF has barely been above water, up about 2% year to date, while the Nasdaq Composite and S&P 500 are each up 12%.
Source
Originally published at www.fool.com.