Is there an ETF for the Magnificent Seven?

There is an ETF for the Magnificent Seven stocks. The Roundhill Magnificent Seven ETF (NYSEMKT: MAGS) focuses solely on the Magnificent Seven stocks. It held all seven with a roughly equal weighting. The fund had an ETF expense ratio of 0.3%.

What is the most undervalued Magnificent 7 stock?

As of mid-2026, the S&P 500 traded above 25.5 times earnings, while the Nasdaq-100 traded at 34.5 times earnings. The lowest valuation among the Magnificent Seven was Microsoft (23.4 times earnings), which traded at a much lower multiple than the other companies (ranging from more than 24 times (Meta) to nearly 360 times earnings (Tesla)).

How have the Magnificent 7 stocks performed historically?

The Magnificent Seven stocks have historically performed extremely well. Over the last five years, the group has delivered a 119.8% return, more than double the rest of the S&P 500 (57.8%). Nvidia has produced the best return (908.4%), while Microsoft has delivered the lowest (36.5%).

Are the Magnificent 7 stocks suitable for long-term investing?

The Magnificent Seven stocks can be suitable for long-term investment. Many of these companies are capitalizing on major long-term growth trends, such as cloud computing, AI, e-commerce, cybersecurity, and electric vehicles. That positions them to grow their revenue and earnings at above-average rates in the coming years, which could drive continued strong stock price gains. However, they trade at higher valuations and are very large companies. That could make it more difficult to grow at higher rates and deliver higher returns in the future.

What percentage of the S&P 500 are the Magnificent 7 stocks?

As of July 2026, the Magnificent Seven's Market Cap was 32.5% of the S&P 500. The group's combined weighting has typically ranged between 32% and 35% of the S&P 500 over the past year.

Magnificent 7 Stocks: What They Are and How to Invest

Q: What are the Magnificent Seven stocks?

Magnificent Seven stocks are seven mega-cap, tech-focused companies: Apple, Amazon, Alphabet, Meta Platforms, Microsoft, Nvidia, and Tesla.

Magnificent 7 Stocks: What They Are and How to Invest in Them

By Matthew DiLallo – Updated Jul 13, 2026 at 3:15 PM EST | Fact-checked by Robin Hartill, CFP

Key Points

Magnificent Seven stocks lead in AI, cloud computing, and consumer tech; their size impacts major indexes.
These seven stocks have doubled the S&P 500's return over the past five years (119.8% compared to 57.8% for the rest of the S&P 500).
Investing in these stocks carries risks like high valuations and potential regulatory challenges.

The “Magnificent Seven” are seven mega-cap, tech-heavy companies that have driven a huge share of U.S. stock market gains in recent years. They’re leaders in areas like AI, cloud computing, digital advertising, software, and consumer tech, and they’ve become so large that their performance can move major indexes.

Here's a look at the Magnificent Seven stocks and whether they are good investments right now.

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An infographic defining and listing the "Magnificent Seven" stocks along with their respective logos. — Image source: The Motley Fool.

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What are the Magnificent Seven stocks?

The Magnificent Seven stocks are seven of the largest technology-focused companies by market cap.

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Ticker Information Table
Name and ticker	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Dividend yield	Industry
Apple (NASDAQ:AAPL)	$4.5 trillion	0.35%	Technology Hardware, Storage and Peripherals
Alphabet (NASDAQ:GOOG)	$4.2 trillion	0.25%	Interactive Media and Services
Amazon (NASDAQ:AMZN)	$2.8 trillion	0.00%	Multiline Retail
Meta Platforms (NASDAQ:META)	$1.5 trillion	0.36%	Interactive Media and Services
Nvidia (NASDAQ:NVDA)	$5.4 trillion	0.12%	Semiconductors and Semiconductor Equipment
Microsoft (NASDAQ:MSFT)	$3.7 trillion	0.72%	Software
Tesla (NASDAQ:TSLA)	$1.4 trillion	0.00%	Automobiles

Data as of Aug 17, 2026. Showing 7 of 7 total entries.

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All seven companies are focused on capitalizing on large technology-driven growth trends. But technically speaking, five are tech stocks, and two are tech-focused consumer discretionary stocks.

They're leaders in artificial intelligence (AI), cloud computing, video games, social media, digital advertising, software, hardware, e-commerce, and electric vehicles (EVs). These technology trends are driving robust growth for companies focused on them.

Why are they called the “Magnificent Seven”?

Bank of America analyst Michael Hartnett popularized the phrase as a modern update to older groupings like FAANG. The idea is less about a formal index and more about the reality of the market: a small group of companies grew so large and quickly that they drove market returns.

Should you invest in the Magnificent Seven?

The Magnificent Seven stocks have delivered magnificent returns. As a group, these seven stocks have risen by more than 24% over the last 12 months (as of early July 2026). That compares to the nearly 21% return of the rest of the S&P 500.

Magnificent Seven stocks have delivered market-crushing returns over the past decade:

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MAG 7 returns July 2026 — Image source: YChart.

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Overall, the group has delivered a 119.8% return over the last five years, more than double the rest of the S&P 500 (57.8%).

Many investors believe this group of mega-cap stocks can continue producing dominant returns. They're capitalizing on several technology megatrends that should enable them to continue growing at outsize rates.

Just a few examples are:

Artificial intelligence (AI): Chips, infrastructure, software, and AI-driven advertising
Cloud computing: Ongoing migration of business systems to the cloud
Digital advertising: Continued shift of ad budgets online
Consumer tech and platforms: Devices, e-commerce, social networks, and ecosystems with massive user bases

That said, “great companies” don’t automatically mean “great buys at any price.” For many investors, the better question is whether to buy all seven, a few, or get exposure through an ETF.

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Risks of investing in the Magnificent Seven

Although the Magnificent Seven are among the world's largest and financially strongest companies, they're not without risk. Here are some risk factors to consider before investing in the Magnificent Seven:

High valuations

After their market-smashing returns in recent years, the group traded at a premium price. In mid-2026, the Magnificent Seven traded at price-to-earnings (P/E) ratios of over 23 times (Microsoft) to nearly 360 times (Tesla), with most trading at more than 29 times earnings. That was higher than the S&P 500's P/E ratio (25.6 times), though not as much (on average) as the tech-heavy Nasdaq-100 (around 34.5 times). Given their elevated valuations, shares of the Magnificent Seven could stumble if their growth slows.

Cyclical nature of tech spending

If there's a recession and economic growth slows, it could significantly affect the growth of the Magnificent Seven.

Law of large numbers

Given their mammoth sizes, it will likely be challenging for the Magnificent Seven to deliver sustained above-average growth in the years ahead unless a new tech trend emerges that accelerates their growth (like AI). If growth slows, it could erode some of the premium from their share prices. Even a whiff of slower growth could weigh heavily on the group.

Potential antitrust concerns

Governments might reject future acquisitions they attempt -- much like Microsoft's long road to acquire Activision and Nvidia's blocked deal for Arm Holdings (ARM -2.87%). If regulators block future deals, it could slow that company's growth. Meanwhile, due to antitrust concerns, the federal government could eventually seek to force some of the Magnificent Seven to break up.

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Metrics to evaluate Magnificent 7 Stocks

Here are some key metrics investors can use to evaluate Magnificent 7 stocks:

Future outlook for the Magnificent 7

The Magnificent 7 are leaders in several megatrends, including e-commerce, robotics, AI, and cloud computing. They're investing heavily to capitalize on these growth trends. For example, McKinsey estimates that companies will invest a staggering $7 trillion in data centers by 2030 to support AI and traditional workloads. This heavy investment period will limit the Magnificent Seven companies' ability to return cash to shareholders through dividends and buybacks. However, these investments should help drive accelerated earnings and revenue growth over the long term.

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The bottom line

The Magnificent Seven stocks have delivered magnificent returns over the years. These tech-focused companies have capitalized on many of the biggest technological growth trends, enabling them to grow rapidly and produce strong returns for their investors.

While they're in excellent positions to continue growing rapidly, they're not without risk. Investors must understand the risks before loading their portfolios with these seven stocks.

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Magnificent Seven FAQ

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About the Author

Matt DiLallo has been a contributing Motley Fool stock analyst specializing in the energy, industrials, and real estate sectors since 2012. He also covers dividend-paying stocks, pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

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Matt DiLallo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Magnificent 7 Stocks: What They Are and How to Invest in Them

Key Points

What are the Magnificent Seven stocks?

Why are they called the “Magnificent Seven”?

Should you invest in the Magnificent Seven?