Roundhill Magnificent Seven ETF

Roundhill Magnificent Seven ETF (MAGS) is an actively managed fund that holds equal stakes in seven giant US technology-linked companies: Alphabet, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA and Tesla. It gets most of that exposure through swap contracts rather than by owning the shares outright. Its 0.30% expense ratio is below the 0.55% average of similar funds. With only seven companies, though, it is far more concentrated than a broad stock fund.

• Over the year to Oct 27, 2026, MAGS returned +7.5%, 3rd of 5 among similar funds.
• Its worst full calendar year was 2025 (+23.0%); its best was 2024 (+64.0%).
• The deepest fall in its price history was 29.9% (Dec 17, 2024 to Apr 8, 2025), recovered by Jul 28, 2025.

As of Jun 30, 2026, the fund held 9 securities; the ten largest made up 84.78% of assets, and 9.41% sat in cash and money-market holdings.

The bonds mature in 0 years on average (weighted by size), with an average coupon of 0%.

• Over the three months to Jun 30, 2026, investors withdrew a net $372.2M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +14.52%, +6.60%, -8.89%.

MAGS does not track an index. It is actively managed, but it follows a simple rule: hold equal exposure to the "Magnificent Seven." As of March 31, 2026, those were Alphabet, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA and Tesla. Each quarter the fund rebalances so every company is back to an equal share. If the group's membership changes, the fund aims to make the switch as soon as reasonably practical, and no later than the next quarterly rebalance.

Most of the exposure comes from swap agreements and forward contracts, not shares. In a swap, a large bank agrees to pay the fund the return on a stock. The fund therefore depends on that bank honoring the deal, which is called counterparty risk. The sub-adviser, Exchange Traded Concepts, adjusts positions daily. As of June 30, 2026, the fund owned each stock directly at about 2.4% to 3.5% of net assets. Treasury bills made up about 55%, and a Roundhill short-term fund (XBOX) about 7%. Holding cash-like assets alongside the contracts is typical for a swap-based fund.

The fund is non-diversified and concentrates in technology-related industries, from software and semiconductors to automotive. It often handles creations and redemptions in cash. That can force it to sell holdings and realize capital gains that may be passed on to shareholders.

• MAGS charges 0.3% a year, versus an average of 0.55% for the similar funds below (2nd of 5, cheapest first).
• Of that, 0.29% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $31 in the first year and $381 over 10 years (assuming a 5% annual return).

It bets on just seven technology-linked companies through swaps, so it works better as a small add-on than as the base of a portfolio.

MAGS could add a focused growth tilt toward seven of the largest US technology-linked companies, but it does not replace a broad stock fund. It launched in April 2023, so it missed the 2008, 2020 and 2022 downturns. Its weakest full calendar year, 2025, was still a gain of about 23%. Even so, it fell 29.9% from December 17, 2024, to April 8, 2025, and recovered by July 28, 2025, about 3.6 months later. Anyone forced to sell shares during a drop like that would lock in losses. It yielded 1.37% as of October 27, 2026, paid once a year, so it is not an income source. In the SEC's standard example, its 0.30% expense ratio comes to $31 in the first year on $10,000. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.