Roundhill Plans Leveraged Magnificent Seven ETF

The firm is starting both 2x and inverse funds for the Magnificent Seven group of tech stocks.

Jeff Benjamin

Wealth Management Editor

Dec 19, 2023

Edited by: Mark Nacinovich

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If you like the Magnificent Seven stocks, which serve as rocket fuel for the likes of the Invesco QQQ Trust (QQQ), you’re going to love the latest offering from Roundhill Investments.

According to a filing last week with the Securities and Exchange Commission, Roundhill plans to launch an ETF that offers twice the daily performance of the renowned Magnificent Seven.

The Roundhill Daily 2X Long Magnificent Seven ETF will invest at least 80% of its net assets in an equally weighted basket representing Facebook parent Meta Platforms Inc. (META), Apple Inc. (AAPL), Amazon.com Inc. (AMZN), Google parent Alphabet Inc. (GOOG), Microsoft Corp. (MSFT), Nvidia Corp. (NVDA) and Tesla Inc. (TSLA). 

The filing follows the November launch of the Roundhill Magnificent Seven ETF (MAGS), which offers long-only exposure to the renowned set of stocks that has been carrying major market indexes and exchange-traded funds, including the QQQ, which has gained more than 52% from the start of the year.

In just over a month, MAGS has gained 13%.

Magnificent Seven's Performance

In a move reflective of the scrappy Roundhill operation, MAGS was created through the conversion of the Roundhill BIG Tech ETF (BIGT), which was a broader mega-gap technology fund.

According to analysis by Goldman Sachs Investment Research, and reported by the Wall Street Journal, the basket of seven stocks gained 75% this year and represents 30% of the S&P 500’s market value, which is the highest ever for any seven stocks.

The S&P 500 is up 23% this year.

For more context on the overall impact of the Magnificent Seven stocks, the Journal calculated the combined weighting of the seven stocks as part of the MSCI All Country World Index to be larger than that of all the stocks from Japan, France, China and the United Kingdom combined.

Of course, for those investors and financial advisors who might feel like the Magnificent Seven ride has gotten a bit too lofty, Roundhill also filed last week to launch the Roundhill Daily 2X Inverse Magnificent Seven ETF.

Contact Jeff Benjamin at [email protected] and find him on X at @BenjiWriter    

Jeff Benjamin

| Contact: [email protected]

Jeff Benjamin is the wealth management editor at etf.com, responsible for coverage related to the financial planning industry. This includes writing, hosting podcasts, webinars, video interviews and presenting at in-person events.

Jeff is a veteran journalist with more than 30 years’ experience covering the financial markets. He has won more than two dozen national and regional awards for his reporting. He most recently worked as a senior columnist at InvestmentNews where he wrote about investment products and strategies, as well as the broader financial planning industry. Prior to that, Jeff worked as an analyst at Cerulli Associates where he researched and wrote reports on the alternative investments industry. Jeff also worked as a money management reporter at Dow Jones Newswires, where he covered the mutual fund industry.

Based in North Carolina, Jeff is a former Marine and has a bachelor’s degree in journalism from Central Michigan University.

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