The Magnificent Seven (Plus or Minus a Few)

I hear about the Magnificent Seven several times a day — seven companies and eight stocks that have dominated headlines for the past few months.

The Magnificent Seven comprises Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Nvidia (NVDA), Meta Platforms (META), Tesla (TSLA), and Alphabet (GOOG/GOOGL). These names aren’t new and have all been in the S&P 500 for at least the past five years (most even longer).

But now investors are paying more attention to the Magnificent Seven. And it’s not just because of the catchy name. It makes sense that investors like big tech. They can get exposure to innovation and technological advances while staying relatively safe due to these companies’ scale.

With added excitement surrounding artificial intelligence, the Magnificent Seven may be one of the easiest ways to play this trend without investing in obscure small-cap stocks. But many investors may be unintentionally overallocating to these stocks in their ETFs. These are ways investors can avoid (or embrace) the Magnificent Seven in their ETFs.

Magnificent Seven Growing Their SP 500 Share