Mag 7 ETFs, led by tech stocks like Apple and Amazon, surged in May

From Nasdaq: 2025-06-05 10:00:00

In May, the Magnificent Seven stocks, including Apple, Microsoft, Alphabet, Amazon, NVIDIA, Tesla, and Meta Platforms, collectively gained over 13%, driving 62% of the S&P 500’s gains. Roundhill Magnificent Seven ETF surged 10% in the past month, outperforming the broad market fund. NVIDIA reclaimed its position as the world’s most valuable company with a market cap of $3.45 trillion.

The Mag 7 stocks are expected to continue their solid performance due to superior earnings growth, AI boom, defensive play, and solid fundamentals. These mega-cap tech stocks have faster growth rates, higher profit margins, and reasonable valuations. Analysts have also upgraded companies like Amazon and Meta, citing factors like eased U.S.-China tariffs and strong company performance.

Despite recent rebounds, challenges lie ahead for the Mag 7 stocks. Valuations have increased sharply, with a median forward P/E ratio of 28, compared to the broader S&P 500’s 21.4. Increased capital expenditures in AI infrastructure could pressure profit margins, and U.S.-China trade tensions pose a risk to profitability. AI adoption and ongoing investment in AI infrastructure are expected to provide further growth opportunities in the tech sector.

Investors looking for exposure to the Magnificent Seven stocks can consider ETF options like Roundhill Magnificent Seven ETF (MAGS), MicroSectors FANG+ ETN (FNGS), Vanguard Mega Cap Growth ETF (MGK), Invesco S&P 500 Top 50 ETF (XLG), and iShares S&P 100 ETF (OEF). These ETFs offer varying levels of exposure to the Mag 7 stocks and can provide a way to capitalize on their potential growth.



Read more at Nasdaq: Mag 7 ETFs Surge: Will the Rally Keep Rolling?