From Nasdaq:

In this episode of ETF Spotlight, Dave Mazza discusses the potential of investing in high-growth “Magnificent 7” stocks compared to dividend-paying stocks with reliable income streams. The Magnificent Seven stocks led the market rally last year, responsible for over 62% of the S&P 500’s total return in 2023. Nvidia and Meta are leading the group this year, while Tesla lags in performance. The Roundhill Magnificent Seven ETF (MAGS) has attracted significant interest from investors, providing equal weight exposure to these high-growth stocks.

As ultra-low interest rates and the surge of high-growth tech giants diminish the appeal of dividend-paying stocks, dividend-focused ETFs experienced record low inflows last year. However, dividend growers have performed well in the longer term. The Roundhill S&P Dividend Monarchs ETF (KNGS) holds companies that have consecutively increased their dividends for at least 50 years, and it boasts a higher exposure to “old economy” sectors. Should investors combine the growth potential of the Mag 7 stocks with the income stability of dividend growers?

Tune in to the podcast to learn more about these investment strategies. If you have any comments or questions, email [email protected] or subscribe to the ETF Spotlight. Make sure to also sign up for Zacks’ free Fund Newsletter for top news and analysis delivered straight to your inbox.



Read more: Can Dividend Kings Outperform the Magnificent 7 ETF?