MAGS ETF: What Is It? - Returns, Expense Ratio, Holdings, and Alternative ETFs
A Roundhill concentrated thematic ETF that holds 7 US mega-cap tech stocks — Apple, Microsoft, Nvidia, Alphabet, Meta, Amazon, and Tesla — at equal weight.
SubscribeWhat is this ETF?
This fund holds 7 US mega-cap tech stocks, often called the "Magnificent Seven," at equal weight, maintaining the equal allocation through quarterly rebalancing.
It is suited for investors seeking high-concentration exposure to 7 core mega-cap tech names without the growing mega-cap weighting found in Nasdaq 100 or S&P 500 ETFs.
It is a passive (index-tracking) ETF launched in 2023 by Roundhill Investments.
How does it invest?| Item | Details |
|---|---|
| Underlying Holdings | Apple, Microsoft, Nvidia, Alphabet, Meta, Amazon, Tesla |
| Management Style | Passive (maintains equal weight) |
| Rebalancing Frequency | Once per quarter (restores equal weight) |
| Dividend | None (negligible distributions) |
| Total Expense Ratio | 0.30% |
The fund allocates equal weight across 7 mega-cap tech stocks, providing balanced exposure without market-cap concentration. Through quarterly rebalancing, the structure takes a contrarian approach: when a holding surges and its weight grows, profits are harvested and underperformers are added.
- Equal weighting offers greater diversification across the 7 names compared to a market-cap-weighted index
- Holding only 7 stocks results in a far higher mega-cap tech concentration than the Nasdaq 100
Size and Cost
Assets under management (AUM) stand at $5.5B, with a total expense ratio of 0.30% annually.
As a high-concentration portfolio of only 7 holdings, it is highly vulnerable to single-stock events. GRNY (Fundstrat Granny Shots), XLSR (Sector Rotation), and SSUS listed in the table are similar concentrated thematic or active-strategy ETFs, but their holdings and strategies differ significantly from MAGS. ARKG (ARK Genomics) and RSHO (Reshoring thematic) are separate thematic concentrated ETFs included for reference.
Performance and Flows
1-Year Price Performance
Dividend & Yield
52-Week Price RangeIn an environment where mega-cap tech drives the US stock market, MAGS has delivered returns well above broad indices, though its equal-weight structure has partially capped upside from leaders such as Nvidia and Meta.
Growing appetite for AI-themed exposure and concentrated mega-cap tech investing fueled rapid asset growth shortly after launch, alongside trading demand for straightforward mega-cap tech exposure.
Pros and Cons
Concentrated exposure to 7 mega-cap tech names and the equal-weight rebalancing structure are strengths, but extreme single-stock concentration and elevated volatility are key drawbacks.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
For broader tech diversification, QQQ (Nasdaq 100) and XLK (Technology sector) include mega-cap tech names while holding many more stocks. For a growth tilt with somewhat more diversification, MGK (Vanguard Mega-Cap Growth) and VUG (Vanguard Growth) are also worth comparing. If you want to maximize mega-cap tech concentration without leverage, MAGS is by far the most streamlined choice.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 GRNY | Fundstrat Granny Shots US Large Cap ETF | $27.16 | +1.0% | $4.3B | 0.75% | 0.13% | +5.6% |
 ARKG | ARK Genomic Revolution ETF | $48.72 | +1.2% | $2.0B | 0.75% | - | +52.8% |
 XLSR | State Street US Sector Rotation ETF | $66.14 | +0.5% | $1.1B | 0.70% | 0.4% | +8.3% |
 SSUS | Day Hagan Smart Sector ETF | $56.45 | +0.8% | $601.8M | 0.76% | 0.44% | +15.3% |
 INRO | iShares U.S. Industry Rotation Active ETF | $36.43 | +0.7% | $520.1M | 0.42% | 0.59% | +13.8% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 USLM | United States Lime & Minerals Inc | 1.08% | $109.65 | -1.8% | $3.1B | 23.5 | 0.22% |
 FAF | First American Financial Corp | 0.15% | $64.02 | -1.1% | $6.5B | 9.0 | 3.62% |
 XBOX | Roundhill Box Spread ETF | 0.16% | $101.38 | -0.1% | $0.0M | - | - |
| NVDA | NVIDIA Corp | 0.05% | $216.00 | +2.4% | $5.21T | 27.3 | 0.36% |
| AAPL | Apple Inc | 0.05% | $343.91 | -1.1% | $5.02T | 39.4 | 0.32% |
| AMZN | Amazon.com Inc | 0.05% | $249.09 | +0.4% | $2.69T | 20.0 | - |
| META | Meta Platforms Inc | 0.05% | $630.56 | -1.9% | $1.61T | 21.5 | 0.3% |
Investor Checklist
MAGS is an ultra-concentrated thematic ETF that holds the 7 Magnificent Seven mega-cap tech stocks at equal weight. With exposure limited to just 7 names, it is a high-risk product that places a large bet on the mega-cap tech cycle.
| Checkpoint | What to Confirm | Current Status |
|---|---|---|
| 🎯 Concentration risk awareness | Understand the extreme concentration across only 7 holdings and how single-stock events can affect the portfolio | High concentration risk noted |
| 📊 Compare with QQQ | Assess differences in mega-cap tech concentration and performance relative to the Nasdaq 100 (QQQ) | Higher concentration than QQQ |
| 🔄 Rebalancing mechanics | Understand the quarterly equal-weight rebalancing mechanism and its tax implications | Quarterly rebalancing |
| 📈 Mega-cap tech cycle | Assess current mega-cap tech valuations and the sustainability of the AI growth momentum | Cycle monitoring required |
Because of the 7-name concentration, weak company earnings, regulatory issues, or management changes can have an immediate impact on the entire portfolio. With mega-cap tech valuations elevated, rising rates or a growth slowdown could trigger drawdowns larger than those of broad indices.
MAGS is a high-risk thematic ETF that concentrates on 7 mega-cap tech stocks. It is suitable as a satellite allocation for investors convinced of mega-cap tech's growth story, while a more diversified tech ETF such as QQQ or XLK is the wiser choice as a core portfolio holding.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of September 3, 2026.
Today's 5 AI picks, all free