To The Moon

🌟🌟🌟$The Magnificent Seven ETF(MAGS)$ is up a huge 35% year todate, double that of 15% gain for S&P500.  Can MAGS ETF keep soaring especially when the market is mostly concentrated in just these stocks?

The Roundhill Magnificent 7 ETF offers equal weight exposure to the Magnificent 7 stocks - Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla.  MAGS is the first ever ETF to track the Magnificent 7.

MAGS ETF is rebalanced to equal weight on a quarterly basis, ensuring consistent exposure to the Magnificent 7 stocks in just 1 single trade.

For an actively managed ETF, the expense ratio is only 0.29%.  It also pays dividends annually.  The current dividend yield is 0.33%.

The Magnificent 7 represent 31.5% of the S&P500.  This is almost one third segment of the S&P500.  The effect is even more pronounced in the Tech Heavy Nasdaq 100 where the Magnificent 7 account for 42.3% of the index. 

However the Magnificent 7 are magnificent for a reason.  They are fundamentally strong and have wide moat in terms of their brand, pricing power, operational performance, strong balance sheet.  Their products are used by billions of people in some cases. 

Take for example $Amazon.com(AMZN)$  It is a global leader and the largest online retailer in the world with USD 412.1 billion in annual Web sales  in 2023.  It is also a leader in Cloud Computing with Amazon Web Services, providing diverse services like computing power, database storage and content delivery with advanced AI capabilities. 

$Alphabet(GOOG)$  has the biggest share of the Search Engine market with 92%.  It also owns YouTube, Android and many other businesses. 

$Meta Platforms, Inc.(META)$  owns Facebook which is the biggest social media platform in the world with more than 3 billion monthly active users.  Facebook is now part of Meta's family of apps business after it rebranded to Meta Platforms in 2021 to reflect its growing platform and focus on the Metaverse. 

Nvidia is a pure play AI company with its AI specialised chips that are in such high demand that its revenue is up 262% from last year.  It overtook Microsoft and Apple to be the most valuable company in the world until last Friday. 

$Microsoft(MSFT)$  Windows and Office Suite are used around the world.    It has a wide moat arising from switching costs, network effects and cost advantages. 

I like MAGS ETF as it provides me with a low cost way to invest in the Magnificent 7 companies in just 1 trade.  It does the heavy lifting for me so that even though negative news may affect one, the effect will be minimised. 

The best part of MAGS ETF is its capital growth.  It even beats the S&P500 Index this year.  May 2024 be the best year ever for the Magnificent 7 as they continue their exponential growth ahead  with the latest technological advances and innovation. 

Can MAGS ETF keep soaring?  I believe it will as we are just at the beginning of the AI revolution! 

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