MAGS Jumps as Tech ETFs Ride US-China Trade Talk Euphoria
- Tech ETFs surged after the US and China agreed to pause tariffs.
- SOXL delivered a massive 18% daily gain, the highest among semiconductor funds.
- MAGS rose 4.6% as Magnificent Seven stocks stand to benefit from the trade truce.
The Roundhill Magnificent Seven ETF (MAGS) and other tech-focused ETFs surged Monday following a breakthrough in U.S.-China trade relations, as investors rushed into funds tracking the market's biggest tech names.
The rally came after the United States and China agreed to temporarily pause most tariffs on each other's goods over the weekend, sending technology stocks soaring in Monday trading.
For investors looking to profit from the sudden rise in tech giants like Nvidia Corp. (NVDA) and Apple Inc. (AAPL), funds like MAGS and the Direxion Daily Semiconductor Bull 3X ETF (SOXL) delivered immediate gains today, though there are wide differences in performance so far this year.
According to FactSet data, MAGS jumped more than 5% as of midday Monday, as its portfolio of tech giants benefited directly from the easing trade tensions. The $2 billion fund, which launched as the first-ever "Magnificent Seven" ETF in the U.S. market, has seen its one-month performance reach 6.8%.
Despite today's gains, MAGS remains down 12% year to date. The ETF has also experienced $12.1 million in outflows over the past five days and $16.1 million over the past month.
Semiconductor Funds Lead the Rally
The most dramatic gains came from leveraged semiconductor funds, with SOXL skyrocketing 21.7% in afternoon trading, according to FactSet data. The aggressive fund, which provides triple-leveraged daily exposure to semiconductor companies, has surged 37.9% over the past month despite being down 48.2% year to date.
SOXL's dramatic movement reflects the outsized impact of the U.S.-China tariff pause on semiconductor stocks, which have been vulnerable to trade tensions. The $9.9 billion fund has seen $346 million in outflows over the past five days and nearly $1 billion over the past month, FactSet data showed.
Source: FactSet
For investors seeking less volatile semiconductor exposure, the VanEck Semiconductor ETF (SMH) gained 5.2% in afternoon trading, according to FactSet. The $19.8 billion fund holds a concentrated portfolio, led by NVDA at 20.2% of assets.
The broader tech sector also participated in the rally, with the Vanguard Information Technology ETF (VGT) climbing 3.6% Monday afternoon, according to FactSet data. The $80.2 billion fund, which provides diverse exposure to the U.S. information technology sector, has gained 9.8% over the past month but remains down 8% year to date.
VGT's top holdings include AAPL at 18.2%, NVDA at 14.3% and Microsoft Corp. (MSFT) at 13.8%, showcasing the dominant position these companies maintain in the broader tech landscape.
