The frenzy for AI investments is receiving a new branding on Wall Street. Following the sensational market debut of SpaceX, a new stock grouping dubbed "MANGOS" has rapidly gained popularity. Several ETF issuers have already raced to file applications for related funds, but analysts caution that the investment rationale behind this naming game warrants more scrutiny than its marketing appeal.
The acronym MANGOS stands for Meta, Anthropic, NVIDIA, Alphabet, OpenAI, and SpaceX. According to reports, after SpaceX's highly anticipated market debut last week, this grouping quickly captured market attention. Several smaller ETF issuers promptly filed fund applications aiming to transform this concept into a tradable product.
However, both OpenAI and Anthropic remain private companies, not yet trading on public markets, and the related ETF applications are still pending approval from the U.S. Securities and Exchange Commission.
The rise of this new concept reflects shifting market expectations about the distribution of AI's benefits. Some investors believe the beneficiaries of the AI boom are gradually expanding from chipmakers and cloud computing giants to include large private tech firms like OpenAI and Anthropic, thereby challenging the market leadership of the "Magnificent Seven."
Evolution of the Naming Game: From FAANG to the "Magnificent Seven" to MANGOS
Wall Street's enthusiasm for naming tech stock groups has a long history. In the 2010s, FAANG—Facebook (now Meta Platforms, Inc.), Amazon.com, Apple, Netflix, and Google (now Alphabet)—was the hottest tech stock label. Subsequently, the "Magnificent Seven" became synonymous with the AI-driven bull market. By late 2024, the "BATMANN" concept was briefly seen as a new market pillar. With a second Trump term, geopolitical factors led to the emergence of the "TACO trade" and "NACHO trade."
Now, MANGOS is the latest vehicle for market narratives. The underlying logic is that as some members of the "Magnificent Seven" lose their luster, the market needs a new set of high-growth AI targets to absorb capital. Joseph Powers, Chief Investment Officer at RWA Wealth Partners, noted that some investors may be trimming their holdings in the "Magnificent Seven" to make room for a new generation of high-growth AI companies.
Powers also pointed out that the nature of AI infrastructure development is evolving. In the early stages of the AI boom, large tech companies could largely fund infrastructure investments themselves, giving them an advantage over smaller rivals. However, as AI-related expenditures continue to grow, more companies may need to turn to public markets for financing. "We will see how much capital these three companies—SpaceX, Anthropic, and OpenAI—can absorb from the market," Powers said.
Multiple ETF Issuers Rush to Position Themselves with Complex Structures
Several smaller ETF issuers have already filed applications for related funds. The Corgi ETF Trust I has applied to establish the Corgi MANGOS ETF. This fund intends to invest at least 80% of its net assets in securities, derivatives, or other instruments related to Meta, Anthropic, NVIDIA, Alphabet, OpenAI, and SpaceX. Since OpenAI and Anthropic remain private, the fund may gain exposure through derivatives, private investment vehicles, or other structures.
The Yorkville America Investment Trust has separately applied to establish two funds: the Yorkville America MANGO Plus ETF and the Yorkville America MANGO Plus Premium Equity Income ETF.
The former will include, in addition to MANGOS members, chip and hardware companies such as AMD, Broadcom, Micron Technology, Intel, and Dell Technologies. According to the filing, publicly traded MANGOS members are expected to be held with roughly equal weightings, while exposure to OpenAI and Anthropic would primarily be achieved through perpetual futures contracts. The latter fund will additionally sell call options on the MANGO Plus portfolio constituents to enhance returns.
All these applications are in the preliminary stages and have not yet received SEC approval.
Strong Marketing Hype Raises Questions About Investment Logic
Despite the market enthusiasm, some ETF analysts have reservations about the substantive value of the MANGOS concept. Dave Nadig, President and Director of Research at ETF.com, stated in a phone interview that such products might be "slightly over-packaged convenience bundles."
"There is no academic basis for bundling a few companies that aren't public yet, where you might only get exposure through a special purpose vehicle, with a few extremely large hyperscale cloud providers and calling that a coherent investment thesis," Nadig said. He believes the grouping reflects more a batch of high-momentum, high-profile names rather than a clear rationale for why these companies should belong in the same portfolio.
Nadig pointed out that for investors seeking direct exposure to the AI boom, buying the relevant company stocks directly might be simpler than paying ETF management fees for a small basket. He acknowledged that such funds might have some value as short-term trading tools—buying one ETF is more convenient than trading multiple stocks simultaneously—but he is skeptical of their use as long-term investment vehicles. "These things might have a place as trading tools, but they don't constitute a real investment thesis," he said.
Nadig also highlighted a deeper risk: Wall Street's conceptual labels may have value in describing established market patterns, but packaging a story into a product before it has been market-tested could potentially harm investors. What MANGOS captures is the latest focal point of investor imagination—AI labs, chipmakers, cloud giants, and newly listed high-growth companies. However, whether this grouping can become the next enduring market leadership cohort remains unknown.
Comments