In case you’re partial to the “magnificent seven,” one exchange-traded fund you’ll wish to imagine is the Roundhill Magnificent Seven ETF (NASDAQ:MAGS). Because the identify suggests, this inventory offers you publicity to those most sensible tech shares.
The highest holdings within 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%
Fairly than proudly owning every some of the shares in my opinion, traders can simply achieve publicity to them thru simply this unmarried ETF. The drawback is that at 0.29%, the expense ratio is a little top given the loss of diversification the fund gives, despite the fact that it shouldn’t derail the entire returns.
The fund introduced in April 2023 and up to now has confirmed to be a cast funding, producing returns of round 50% since then, which is best than the 22% positive aspects traders would have earned from merely making an investment within the S&P 500.
For long-term traders who stay bullish on those shares, this ETF can simplify their making an investment methods. Whilst the risk is that with every of those shares accounting for a good portion of the entire portfolio there may be the chance that one dangerous efficiency can weigh at the fund, within the lengthy haul, those will have to nonetheless be cast investments to hold directly to.
This fund will not be appropriate for traders having a look to reduce their possibility as it is a tech-heavy fund, however in the event you just like the “magnificent seven” and need a very simple approach to put money into they all, the RoundHill Magnificent Seven fund is a smart solution to imagine to your portfolio.