From Nasdaq: 2024-05-03 07:15:00

The “Magnificent Seven” are seven tech-focused mega-cap companies with significant influence over major indexes like the S&P 500 and Nasdaq Composite. Investors interested in owning a piece of each company can create their own Magnificent Seven exchange-traded fund (ETF) instead of buying ETFs with high allocations in these companies.

Top growth-focused ETFs like the Roundhill Magnificent Seven ETF have lower net assets, higher expenses, and limited track records. Investors can consider better alternatives like Vanguard ETFs with expense ratios ranging from 0.03% to 0.07% or the Invesco QQQ ETF with an expense ratio of 0.2%.

Each ETF assigns higher weightings to components with higher market caps, with Microsoft holding the highest weight due to its over $3 trillion market cap. Individual investors may want to target specific companies they believe in and want increased exposure to, similar to top money managers like Warren Buffett.

Investors looking for balanced holdings across all seven growth stocks can create their own equal-weight Magnificent Seven ETF for just over $6,000. This approach provides baseline exposure to each company, allows for gradual acquisition of shares over time, and offers control over the allocation of individual positions.



Read more at Nasdaq: Here’s How Much It Would Cost to Build Your Own Personal Equal Weight “Magnificent Seven” ETF