What If You Only Owned The Magnificent 7?
Maybe seven really is enough
Let’s be honest, the Magnificent 7 have absolutely crushed the S&P 500.
Apple, Microsoft, Alphabet, Amazon, Meta, Nvidia, and Tesla have carried the market on their backs.
They have posted seven consecutive months of gains. They’re up 49% in that time and it’s their 2nd longest streak over the past 10 years.
And the more you look under the hood, the more you start to wonder, do you even need to own anything else?
The returns? They’ve been off the charts.
Over the past year, the Roundhill Magnificent Seven ETF (MAGS) is up 38.42%. The S&P 500 is up 17.10%.
Over the past two years, the Roundhill Magnificent Seven ETF (MAGS) is up 117.86%. The S&P 500 is up 55.10%.
Over the past five years the S&P 500 has been up 94%.
Of the seven companies, Amazon (+47%) is the only one to underperform the S&P 500. You can see the others easily outperformed the index.
If we zoom out 10 years, the gap widens even further versus the S&P 500.
It’s not even really the S&P 500 anymore.
So here’s the question I’ll throw your way:
Do you really need the rest of the S&P 500 anymore?