Topic: How To Invest

Q: Hi Pat; I am seeking your opinion/advice on an ETF that I am thinking about investing in, for exposure to the so called Magnificent Seven Companies. I usually do not do ETFs only individual stocks, mostly on your input. This may be my exception. What are your thoughts on the Roundhill Magnificent Seven ETF, symbol MAGS on Nasdaq? Thanks.

Article Excerpt

A: The Roundhill Magnificent Seven ETF, $37.90, symbol MAGS on Nasdaq Units outstanding: 3.9 million; Market cap: $147.8 million; www.roundhillinvestments.com), offers equal weight exposure to the so-called “Magnificent Seven” stocks—Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla. The fund’s MER is 0.29%. Prior to November 9, 2023, this ETF was originally named the Roundhill Big Tech ETF (BIGT). Now, it has an explicit focus on the Magnificent Seven. Nvidia, Amazon.com, Alphabet Inc. (Google), Microsoft and Apple Inc. are all recommendations of our newsletters. Meanwhile, we see Meta Platforms (Facebook) and Tesla Inc. as holds. We see the fund as okay to hold if you want to own the “Magnificent Seven”. However, you’ll need to take its 100% focus on the Manufacturing sector (and with a sub-focus on technology) into account when looking at your overall portfolio balance across sectors. sectors…