Roundhill Changes Big Tech ETF Into Magnificent 7 Fund

Roundhill Investments changed the name, ticker and focus of its mega-cap tech ETF to encompass the “Magnificent Seven” companies, as investors look for exposure to the stocks that powered this year’s market gains. 

The Roundhill BIG Tech ETF (BIGT) officially changed its name and ticker to The Magnificent Seven ETF (MAGS) on Thursday, after originally announcing the change last month.  

Roundhill, with $515 million in 10 ETFs, is making the change after having launched BIGT in April. While the fund has gained 25% over that time, investors have put in only about $6 million in the ETF that held the so-called FAAMG stocks: Facebook parent Meta Platforms Inc., Apple Inc., Microsoft Corp., Amazon.com Inc. and Alphabet Inc.  

MAGS adds Tesla Inc. and Nvidia Corp. to fill out the “Magnificent Seven” stocks that comprised 80% of the S&P 500’s total return in 2023, according to a Roundhill blog post.  

The firm made the switch due to investor interest in an ETF dedicated to these particular stocks, Roundhill Chief Strategy Officer Dave Mazza said in the blog post. As proof of the strength of that demand, Mazza said the fund’s trading volume nearly quadrupled after the fund made the switch.  

Magnificent Seven Shows Broad View of Tech

The original big tech fund, and the newly reminted MAGS even more so, broadly illustrate the breadth of tech investing. That scope includes Meta and Alphabet in the communication services sector, Amazon in consumer discretionary and Tesla in industrials. Roundhill said the uniting factor of all the companies is their focus on technological innovation. 

Roundhill’s blog post about the fund said the Magnificent Seven are leaders in innovation and touts the size and the resilience of their business models compared to smaller firms. The U.S. Department of Justice may see things differently as it disputes that the size of these firms is conducive to innovation. It sued Google, which is owned by Alphabet, earlier this year, alleging that the firm’s drive to consolidate market power was “snuffing out innovation.” 

Contact Gabe Alpert at [email protected]