Roundhill Magnificent Seven ETF ( *MAGS* ) - *Equal Weight* concentrated exposure to so-called “Magnificent Seven” stocks

The Roundhill Magnificent Seven ETF ( *MAGS* ) offers *equal weight* concentrated exposure to the “Magnificent Seven” stocks – Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla. 

It's P/E of 29.70 is very similar to broad technology sector, which is good. However, it's projected long-Term earnings growth rate is 10% *poorer* than it's technology index. Perhaps these are *too big* to coninue replicating such earnings growth forever.

Even though it has produced oversized return during last 1 year, it's going forward return potential seems to be lesser than it's broad technology index. Also, being so concentrated is also prone to higher risk.

iShares Russell Top 200 Growth ETF ( *IWY* ) might offer better diversification and higher earnings growth potential. We discussed it in past here: https://financial-well-being.blogspot.com/2022/01/iShares-Russell-Top-200-Growth-ETF-IWY-Best-passive-index-ETF-for-large-cap-growth.html

However, don't be surprised if, in short term, mega cap synergy momentum continues and MAGS keeps outperforming it's sector for few more years.

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