The ‘Mag 7’ or Magnificent 7 stocks, comprising the most influential U.S.-based companies, with a combined market capitalization of $13.6 trillion, have had their worst month and quarter on record, with still a week left to go.
What Happened: On Monday, Bespoke Investment Group, a New York-based investment advisory company, shared on its X account the 6-month chart of the Roundhill Magnificent Seven ETF MAGS, a fund that offers equal weight exposure to the Magnificent 7 stocks.
The first-ever ETF to track the Mag 7, it allocates between 13% to 15% of its assets to each of the seven stocks: Apple Inc., Alphabet Inc., Amazon.com Inc., Meta Platforms Inc., Microsoft Corp., Nvidia Corp., and Tesla Inc.
Bespoke highlights the fund’s performance this month, especially the chart pattern between 9th April and today. The fund witnessed a steep pullback starting with the tariffs on Liberation Day, followed by a recovery when President Donald Trump announced a 90-day pause to the tariffs.
Now, less than two weeks since “the pause,” the tweet highlights that the fund is merely “cents away” from giving up all of its “post-pause” gains. “So much for the pause doing anything to stop the post-tariff bleeding,” it adds, as tariff-related uncertainties continue to weigh on stocks.
Why It Matters: When markets began to crumble during the first few weeks of the tariffs, U.S. Treasury Secretary Scott Bessent was quoted as saying that this selloff “was more a MAG 7 problem than a MAGA one,” before calling it a reassessment of U.S. tech stock valuations following China’s Deepseek AI breakthrough.
Senior tech analyst Dan Ives of Wedbush Securities has repeatedly called the tariffs “worse than the worst-case scenario,” especially for tech stocks like Apple. Following the pause, he added that the decision saved the markets from the “edge of the cliff,” while noting that China will still be the biggest “wild card” for U.S. tech.
According to Yogesh Kansal, the founder and CEO of investing platform Appreciate, stocks such as Alphabet, Amazon, and Microsoft are now “undervalued” based on their free cash flow metrics. Kansal sees this selloff as a buying opportunity, reported by The Financial Express.
According to Benzinga Edge Stock Rankings, the Roundhill Magnificent Seven ETF has unfavorable price trends in the short, medium, and long-term. What about other tech-focused ETFs? Sign up for Benzinga Edge Stock Rankings to find out.
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