This "Magnificent Seven" ETF Has Been Beating the Market This Year. Is It Still a Good Buy?

• The "Magnificent Seven" are immoderate of the champion tech stocks successful the world.

• These stocks are up betwixt 47% and 1,200% successful the past 5 years.

• Some of their valuations, however, whitethorn beryllium worrisome for investors.

• 10 stocks we similar amended than Roundhill Magnificent Seven ETF ›

Investing successful the champion maturation stocks successful the satellite tin beryllium a look for success. The "Magnificent Seven" stocks -- Alphabet, Apple, Amazon, Meta Platforms, Microsoft, Nvidia, and Tesla -- are synonymous with growth. These are the starring companies successful the S&P 500, and however they execute tin typically beryllium an indicator of the wellness of the wide marketplace of late.

In 2025, arsenic the S&P 500 has been having different beardown year, the Roundhill Magnificent Seven ETF (NYSEMKT: MAGS), which tracks these companies, has been doing adjacent better. Since the commencement of the year, the exchange-traded money (ETF) has risen by astir 21%, which is amended than the S&P 500's gains of conscionable 14%.

However, the large question is: With valuations being arsenic precocious arsenic they are, is the money inactive a bully buy, oregon is present a bully clip to pivot to different stocks?

The Magnificent Seven stocks whitethorn acquisition declines successful worth successful a marketplace correction, but arsenic semipermanent investments, they are apt to proceed rising successful value. These companies person established themselves arsenic beardown businesses with large maturation prospects. They aren't immune to declines, but they person proved themselves implicit the agelong term.

Over the past 5 years, each 1 of these stocks has been successful affirmative territory. The worst performer during that stretch, Amazon, is up astir 47%, but each different Magnificent Seven banal has astatine slightest doubled successful value, with Nvidia starring the way, generating returns successful excess of 1,100%.

Sticking with the Roundhill ETF, which tracks these apical stocks, is simply a elemental mode to guarantee you're successful presumption to payment from their continued maturation successful artificial quality (AI) and tech arsenic a whole. These businesses are successful beardown fiscal signifier and are bluish spot stocks that you tin bargain and clasp for years. Doing truthful wrong a azygous ETF tin beryllium an casual mode to person vulnerability to each of them astatine once.

Companies tin beryllium large businesses, but that doesn't mean that their stocks marque for bully investments careless of price. Take Palantir Technologies arsenic an example. The information analytics institution is generating tremendous maturation and its profits are rising, but it trades astatine much than 400 times its trailing earnings.