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Tap Mag-7 ETFs on Temporary US-China Trade Truce

by Market News Data

From Nasdaq: 2025-05-13 06:46:00

  1. The "Magnificent Seven" tech giants, including Apple, Amazon, Microsoft, NVIDIA, Tesla, Alphabet, and Meta, have faced a 6.4% loss this year due to tariff turmoil. The Roundhill Magnificent Seven ETF has underperformed the SPDR S&P 500 ETF Trust.
  2. Following a U.S.-China trade truce, the MAGS ETF saw a 5.8% surge on May 12, with a 12.9% increase over the past month. This relief comes after a period of market cap losses due to tariff announcements.
  3. Amazon and Meta Platforms led a rally among the "Magnificent Seven" tech stocks post-trade truce. Amazon surged 8.1%, Meta climbed 7.9%, Tesla gained 6.8%, Apple rose 6.3%, NVIDIA jumped 5.4%, Google shares increased 3.4%, and Microsoft added 2.4%.
  4. The U.S. and China agreed to lower tariffs temporarily, easing supply-chain concerns for tech stocks. Apple and Tesla, both reliant on Chinese suppliers, saw stock surges. Tesla is also expected to launch its self-driving Taxi in June.
  5. Notably, Amazon, Meta, Google, Apple, and NVIDIA have significant ties to China in terms of product value, ad revenues, and manufacturing. While the trade truce is positive, export bans on NVIDIA chips to China have created some concerns.
  6. Despite the trade truce, export bans on NVIDIA chips to China have impacted NVDA shares. The focus is now on more selective stock picks within the tech sector. However, opportunities still exist within the "Magnificent Seven" group.
  7. For investors looking at ETF options, MAGS, Vanguard Mega Cap Growth ETF, Invesco S&P 500 Top 50 ETF, and iShares S&P 100 ETF are recommended. Specific stock preferences can be played with Meta-heavy ETFs like Fidelity MSCI Communication Services Index ETF.
  8. Consider ETFs like Strive U.S. Semiconductor ETF for potential gains despite chip restrictions. For a broader tech exposure, iShares Global Tech ETF is a good pick, investing around 35% in Microsoft and Apple.
  9. Want to stay informed about key ETF updates? Sign up for Zacks’ free Fund Newsletter for weekly briefs on top news and analysis, along with top-performing ETFs. Get the latest recommendations from Zacks Investment Research for insights into market trends and stock analysis.



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