Magnificent 7 Still Comprise Over 30% Of S&P 500 Despite Tech Correction

Despite a market rebalancing away from large tech companies, reflected by an over 10% correction in the Roundhill Magnificent Seven ETF MAGS in the past two weeks, the so-called “Magnificent Seven” companies still comprise an outsized portion of the S&P 500.

The Data: The Magnificent 7 comprises seven of the largest U.S. technology companies weighted heavily in the SPDR S&P 500 ETF Trust SPY.

• Apple Inc AAPL, 6.93% of the index.
• Microsoft Corp MSFT, 6.66% of the index.
• NVIDIA Corp NVDA, 5.95% of the index.
• Alphabet Inc G GOOGL, 4.45% of the index.
• Amazon.com Inc AMZN, 3.94% of the index.
• Meta Platforms Inc META, 2.45% of the index.
• Tesla Inc TSLA, 1.4% of the index.
  (Figures taken at the time of writing)

All components have been in the red over the past 10 market sessions at a higher magnitude than the nearly 3% drop seen in the overall S&P 500. The small-cap Russell 2000 index is up nearly 10% in that period.

Still, the Magnificent 7 collectively comprise around 32% of the S&P 500.

Why it Matters: The data reflects a persistent market bullishness in artificial intelligence and Big Tech.

The current correction has lessened Magnificent 7’s year-to-date performance to a degree, but the Roundhill ETF, which tracks the seven companies, is still up over 35% in 2024.

Several experts have predicted a larger market correction, describing the valuations of NVIDIA and other heavily weighted stocks as “bubble-ish.”

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