Will the MAG 7 Stocks Continue to Lead the Stock Market?
The Magnificent Seven includes the following companies trading on the U.S. stock market:
Microsoft (MSFT)
NVIDIA (NVDA)
Apple (AAPL)
Amazon (AMZN)
Alphabet (GOOG)
Meta Platforms (META)
Tesla (TSLA)
The Magnificent Seven ETF product (MAGS) has a portfolio of seven stocks, facilitating easy investment for investment portfolios seeking exposure to these highly capitalized companies that tend to lead the stock market.
The MAG Seven are market cap leaders
The chart of the companies with the leading market caps shows the influence of the MAG Seven stocks:
The chart shows seven of the top eight companies by market cap are the MAG Seven stocks.
Tariffs caused a correction
The Trump administration's April 2 ' Liberation Day ' sent the stock market lower as the fear and uncertainty of unprecedented tariffs weighed on equity prices. The leading indices plunged, led by the technology-heavy NASDAQ composite.
The monthly chart highlights the NASDAQ composite's 26.8% plunge from the December 2024 20,204.58 record peak to the April 7 low of 14,794.45. The Magnificent Seven stocks led the NASDAQ composite lower as uncertainty of future trade barriers gripped the technology and other leading stock market indices.
The MAG Seven came storming back
The daily chart illustrates the rally since the low on April 7.
The NASDAQ Composite rebounded by over 30%, reaching its most recent high of 19,241.41 on May 21. The index was above 19,100 in early June, with the most substantial increases in the MAG Seven stocks.
The MAGS ETF diversifies the exposure to these companies
The top holdings of the Roundhill Magnificent Seven ETF product (MAGS) include:
At $52.37 per share, MAGS had over $2.170 billion in assets under management. MAGS trades an average of more than 2.290 million shares daily and charges a 0.29% management fee. The $0.44 blended divided translates to a 0.84% yield, meaning the yield pays for the expense ratio in a little over one quarter. The MAGS ETF's description is broad:
While the tariffs sent MAGS lower, investors and traders bought the dip.
The monthly chart highlights how MAGS tracked the NASDAQ composite with a 33.5% decline from the December 2024 high to the April 2025 low, and a 37.7% recovery to the May 2025 high.
MAGS underperformed the NASDAQ composite as the tariff issue gripped markets but outperformed the index during the recovery.
The reasons to consider the MAGS ETF product
Most diversified portfolios own some of the Magnificent Seven stocks. The benefits of the MAGS ETF include:
Exposure to a balanced portfolio of the leading technology stocks with the highest market caps.
A one-stop shop for investors through the ETF product.
A low 0.29% expense ratio, more than covered by the blended dividend for long-term holders.
The ETF's assets and daily trading volumes create the high liquidity, allowing for effective buy and sell executions on a tight bid/offer spread.
MAGS is a product that can expose portfolios to the leading technology companies without holding individual positions. MAGS also offers put and call options that can enhance portfolio management.
The companies with the largest market caps are the most widely held stocks. Therefore, expect the Magnificent Seven stocks to continue leading the stock market over the coming months and years until new emerging companies are added or replace the current leaders.
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