Written by Michelle Sofia Michelle Sofia Michelle Sofia
Financial Content Architect & SEO Market Analyst
As a financial journalist and a SEO specialist my passion for making education in finance accessible runs deep. My work combines hands-on market trend analysis with straightforward writing to create content that’s both informative and easy to understand for the average reader. At CleaRank, we’ve built our reputation on a simple idea: transparent broker comparisons shouldn’t be reserved for experts because everyone deserves clear and transparent information, especially when it comes to choosing a broker. Day to day, I focus on refining our educational materials to maximize their visibility and usefulness across trading communities. using our CLEAR™ Methodology The CLEAR™ Score (Credibility, Leverage, Execution, Accessibility, Regulation) is our proprietary ranking system. The CLEAR™ Score provides you with the most accurate and transparent broker ranking after evaluating all the key factors that are crucial for trading success. .

Last fact check on September 14, 2025 by

Jacob Bakshi Jacob Bakshi Jacob Bakshi
CFD & Options Trading Specialist
Trading CFDs and options has been my playground for years, and I love helping others understand these powerful tools and what makes the financial world tick. My work mostly focuses on giving traders the confidence to make informed decisions with unbiased reviews into platforms that prioritize fair pricing, advanced tools, and reliable execution because In fast-moving markets, every detail matters. I have a background in market analysis and risk management, and I’m always on the lookout for brokers that offer the right tools for serious traders.

Meet the MAGS ETF – Investing in the Magnificent Seven

The big tech giants such as Apple, Microsoft, Nvidia, Google, Amazon, Meta, and Tesla have led the major indexes toward consistent new highs over the last decade. Their domination has  been so prominent, that in the investment and trading world, this basket of companies has become known as the ”Magnificent Seven”. They have generated enormous returns and have outperformed both the S&P 500 and the NASDAQ, leading to the creation of an ETF that specifically tracks these seven companies.

We’ll break down everything to know about investing in the Magnificent Seven: the pros and cons, how to invest, and step-by-step instructions on purchasing the MAGS ETF. We also present additional ETFs, including leveraged and short strategies, as well as updated performance charts.

Which companies are considered the Magnificent Seven?

  • Apple (symbol AAPL)
  • Microsoft (symbol MSFT)
  • Nvidia (symbol NVDA)
  • Google (symbol GOOGL)
  • Amazon (symbol AMZN)
  • Meta Platforms (symbol META)
  • Tesla (symbol TSLA)

We argue that Broadcom(NASDAQ: AVGO) and ASML should join the MAG 7 and become the MAG 9 or replace the Meta and Tesla. Broadcom is now a trillion-dollar semiconductor force, with custom AI accelerators and networking gear. While ASML holds a monopoly in advanced lithography which is the bottleneck for every AI chip.

Jacob Bakshi, Senior Derivatives Strategist at CleaRank, adds:

“The ‘Magnificent Seven’ was never meant to be a static club. Markets reward companies that define the next growth cycle, and right now that cycle is AI infrastructure. Broadcom and ASML are no longer supporting actors, they’re the plumbing and the blueprint for every advanced chip on the planet. Meta and Tesla still matter, but their growth stories are more consumer-cycle dependent. If we’re measuring by technological choke-points and revenue visibility, the smarter index today looks more like a ‘Mag 9’: keep the core five (AAPL, MSFT, NVDA, GOOGL, AMZN) and add Broadcom and ASML alongside the original two only if they keep earning the seat. In short, the market’s center of gravity is shifting from applications of AI to the infrastructure that powers it—and AVGO and ASML sit right at that fulcrum.”

Where do you buy an ETF tracking the Magnificent Seven?

An ETF tracking the Magnificent Seven is available for trading on the American (U.S.) stock exchange and can be purchased through a self-directed trading account at one of the major international brokerage platforms such as Interactive Brokers, Charles Schwab, or Fidelity.

Alternatively, it can also be purchased through global online brokers such as eToro or Saxo Bank.

Advantages of investing in the MAGS ETF 

  • Enormous past returns:
    Although the whole concept of the Magnificent Seven is relatively new and the MAGS ETF was created only during 2023, it is worth noting that the historical returns of the stocks included in what is called the “Magnificent Seven” are tremendous, consistently outperforming the S&P 500.
  • Automatic quarterly rebalancing:
    The MAGS ETF, for example, performs automatic rebalancing once per quarter, thus balancing between the weights of the seven companies included in the ETF.
    In fact, once a quarter, the weight of each of the seven stocks returns to being one-seventh of the ETF (a weight of approximately 14.28%).
  • Competitive Management fees:
    The expense ratio of the MAGS ETF currently stands at 0.29% per year.
  • savings in trading commissions:
    When you purchase one ETF, you pay a buy/sell commission only once.
    On the other hand, if you wanted to purchase the seven stocks separately, you would have to pay that buy/sell commission seven times.
CleaRank

Market Cap & S&P 500 Global Weight

Market capitalization and S&P 500 influence of top tech companies.

Market Cap (USD Trillions)

% of S&P 500*

CleaRank

Historical Returns of the Magnificent 7

Annual performance based on Bloomberg Magnificent 7 Total Return Index.

Data from Bloomberg Magnificent 7 Total Return Index.

Disadvantages of investing in the MAGS ETF

  • Excellent past performance does not guarantee future returns:
    Despite the blistering past performance of the Magnificent Seven, it does not necessarily indicate what these companies will deliver in the future.
  • Less diversification:
    You’re only really investing in seven stocks. Although these companies are giants and represent a combined weight of around 30% of the S&P 500, you;re still significantly less diversified than the S&P 500 index or global equity indexes
  • Invest on your own and save on management fees:
    It’s simple to construct your own MAGS ETF as it’s just a basket of seven stocks and anyone can do it. Check for a broker that allows trading in fractional shares and this will enable significant cost savings.

How to buy the MAGS ETF

  • Open a self-directed trading account that allows trading on the U.S. exchange.
    You can open one easily via eToro, Charles Schwab or Interactive Brokers.
  • Deposit initial funds into the trading account that you wish to invest in
    the Magnificent Seven ETF. Always allow for extra liquidity in case another opportunity arises and you’d like to trade something else. 
  • Search for the ticker MAGS in the trading platform of your broker. 
  • Submit a buy order after you’ve located the ETF in the trading platform or app. You can submit either a LMT (limit) or MKT (market) buy order. Alternatively, you can contact your broker’s trading desk and ask them to submit the order on your behalf.
  • The last step is to verify that the order has been executed by checking the MAGS ETF is appearing under open orders.

Types of Magnificent Seven ETFs

  • Long Magnificent Seven – MAGS ETF:
    Tracks the Magnificent Seven with equal weight, rebalanced quarterly.
    Expense ratio: 0.29% per year.
    Assets under management: $2.7 billion as of September 10, 2025.
    Launched on April 10, 2023 (began trading April 11, 2023). 
  • Short Magnificent Seven – MAGQ ETF:
    Offers inverse exposure to the Magnificent Seven.
    Expense ratio: 0.95% per year.
    Assets under management: approximately $937 thousand. Launched February 29, 2024.
  • 2× Leverage Long Magnificent Seven – MAGX ETF:
    Offers 2× leveraged exposure to the Magnificent Seven.
    Net expense ratio: 0.95% (gross 0.96%).
    Assets under management: approximately $93–95 million. Launched February 28, 2024 

Pro Tip: The MAGS will be the most popular option for most traders that believe in the long term upside potential. MAGQ is for traders who wish to hedge or speculate on a pullback. We suggest MAGX only for highly experienced traders as it offers the most upside but also the most downside as the double leverage amplifies the P/L.

Acquisitions by the Magnificent Seven

The investment appeal of the Magnificent Seven is significantly amplified by the large number of key acquisitions that each of these corporate giants has undertaken over the years. Google has acquired over 260 companies, notably Waze and Youtube. Microsoft is not far behind either with 230 acquisitions, including LinkedIn and Activision Blizzard. The dominance and network of these companies keeps on growing. 

“Every acquisition is another brick in an already unshakable fortress,” says Jacob Bakshi of CleaRank. “When you look at the sheer number of strategic acquisitions, you notice a careful plan to own the next decade of technology. The Magnificent Seven have become an evolving ecosystem that competitors can’t easily replicate. For investors that also means more diversification and dominance than ever.”

Magnificent Seven performance in 2024

The most notable points of the MAGS ETF performance in 2024, was its 64% rally and 6 out of the 7 stocks beat the S&P 500 which clocked in 25% gains. All seven stocks ended 2024 deep in the green.

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Magnificent 7 Performance (2024)

Year-to-date returns for individual stocks.

Data based on the Bloomberg Magnificent 7 Total Return Index.

Magnificent Seven performance in 2025 – Year-to-Date

So what’s the latest for the MAGS ETF. It has continued strong performance in 2025 and has outperformed the S&P 500 after lagging earlier in the year. The strongest performer has been Nvidia while Apple and Tesla remain negative year-to-date which is holding back the MAGS EFT from even stronger collective returns,  

Broadcom (AVGO), Taiwan Semiconductor (TSM), and Berkshire Hathaway (BRK-B) still boast market caps above Tesla’s, keeping alive the debate over whether Tesla should retain its seat in the “Magnificent Seven.”

CleaRank

Magnificent 7 Performance (2025)

Year-to-date returns for individual stocks and key indices.

The Magnificent Seven vs. S&P 500 – Return comparison by years

In 8 out of the past 9 years, the Magnificent Seven (Bloomberg MAG 7 Total Returns Index) has outperformed the S&P 500 by a significant margin. Since January 1, 2016, the Magnificent Seven (Bloomberg index) has achieved a cumulative return of 2,095%, compared to the S&P 500’s cumulative +293%. 

Jacob believes this trend is likely to continue, “ Unless there’s a seismic policy shift or an AI bubble, the MAGS ETF will keep setting the tempo for the S&P 500. It’s important for investors to stay flexible and consider adding Broadcom and TSM instead of Tesla, depending on Q4 performance.”

CleaRank

Magnificent 7 vs. S&P 500

Cumulative return comparison since January 1, 2016.

FAQ

MAGS is the Roundhill Magnificent Seven ETF that consists of the following basket of stocks: Apple, Microsoft, Nvidia, Google (Alphabet), Amazon, Meta, and Tesla in equal weights. Each stock is rebalanced each quarter so each stays at roughly 14.28% of the fund.

Over the past decade these mega-cap tech leaders have driven U.S. markets to repeated record highs. Their collective growth has far outpaced the S&P 500 and Nasdaq, earning them the nickname for their dominance and innovation.

Possibly. Many analysts including CleaRank strategist Jacob Bakshi note that Broadcom (AVGO) and ASML have the scale and AI-infrastructure advantage to become a “Mag 9,” especially if Tesla or Meta lose momentum. You can read more about which companies make up the MAGS ETF here.

Any broker that gives you direct access to U.S. exchanges works. The popular choices include Interactive Brokers, Charles Schwab, Fidelity, eToro, and Saxo Bank. Just search the ticker MAGS and place a market or limit order. Just make sure that you only choose a regulated broker.

The most notable advantages include strong historical performance of the underlying stocks, automatic quarterly rebalancing to keep weights equal, a low annual expense ratio of 0.29%, and one-ticket exposure as you need to place a single trade instead of seven separate purchases. Read more about the advantages of the MAGS ETF here.

Past performance can’t guarantee future gains, less diversification, and if your broker offers fractional shares, you could replicate the basket yourself and skip the management fee. Read more about the disadvantages of the MAGS ETF here.

As of September 13 2025, MAGS is up 12.8 % year-to-date, ahead of the S&P 500’s 12.1 %. Nvidia leads the pack (+41.8 %), while Apple (–12.7 %) and Tesla (–18.9 %) remain negative.

Yes, there’s the MAGQ which is an inverse ETF for traders betting against the group. Then there’s the MAGX, which is a 2× leveraged ETF for aggressive experienced traders seeking amplified returns. Read more about the types of the MAGS ETF here.

Its equal-weight structure and low fees make MAGS a natural fit for long-term growth investors. MAGQ and MAGX are designed for short-term, active trading and carry higher risk.

Disclosure:
This analysis is provided for informational purposes only. All prices, data, and forecasts reflect market conditions at the time of writing and the latest fact-check (as of the date specified above). Investors should consult with a qualified financial advisor before making investment decisions.

Michelle Sofia Author Profile
Michelle Sofia Author Profile

Michelle Sofia

Author of this article

CleaRank started with the simple yet powerful vision that transparent and unbiased broker information should be available to everyone, not just those within the industry. This is where I come in with my many years of experience in financial journalism and SEO. Every day, I focus on creating and refining educational content that truly speaks to trading communities and making it both easy to find and genuinely helpful. It’s all about giving people the knowledge they desperately need in order to make informed decisions—step by step, one article at time.