{"id":25614,"date":"2025-09-16T10:28:10","date_gmt":"2025-09-16T10:28:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/25614\/"},"modified":"2025-09-16T10:28:10","modified_gmt":"2025-09-16T10:28:10","slug":"this-artificial-intelligence-ai-etf-has-outperformed-the-market-by-2-4x-since-inception-and-only-holds-profitable-companies","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/25614\/","title":{"rendered":"This Artificial Intelligence (AI) ETF Has Outperformed the Market By 2.4X Since Inception and Only Holds Profitable Companies"},"content":{"rendered":"<p>                                    Key Points<\/p>\n<p>AI is poised to be the biggest secular trend in many decades or even generations.<\/p>\n<p>Buying an exchange-traded fund (ETF) can be a less risky way to gain exposure to AI relative to buying individual stocks.<\/p>\n<p>Roundhill Magnificent Seven ETF (MAGS) holds the &#8220;Magnificent Seven&#8221; stocks: Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla.<\/p>\n<p><a class=\"text-cyan-800 hover:text-cyan-600\" href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=851f16d1-55f1-466f-8b63-699193213722&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-nonbbn-kp%3Faid%3D8867%26source%3Disaedikp0000069%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Dkeypoints_pitch_feed_partner%26ftm_pit%3D17995\" rel=\"nofollow noopener\" target=\"_blank\">10 stocks we like better than Listed Funds Trust &#8211; Roundhill Magnificent Seven ETF \u203a<\/a><\/p>\n<p>For this article, I asked myself: Where would I start investing if I had less than $100 to invest?<\/p>\n<p><img decoding=\"async\" alt=\"A semiconductor labeled with \" ai.=\"\" src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2025\/09\/1758018490_481_\"\/><\/p>\n<p class=\"caption\">Image source: Getty Images.<\/p>\n<p>Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. <a href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=fc1577ca-85aa-473a-baba-be79eeec926b&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001026%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Dtop_incontent_pitch_feed_partner%26ftm_pit%3D17174&amp;utm_source=nasdaq&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=5eea6559-1f78-42ee-9db3-dc507fc41c52\" rel=\"nofollow noopener\" target=\"_blank\">Learn More \u00bb<\/a><\/p>\n<p>An AI ETF that&#8217;s concentrated and full of leading and profitable companies<\/p>\n<p>This answer to my question popped into my head: I&#8217;d want a concentrated exchange-traded fund (<a href=\"https:\/\/www.fool.com\/terms\/e\/etfs\/?utm_source=nasdaq&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=5eea6559-1f78-42ee-9db3-dc507fc41c52\" target=\"_blank\" rel=\"nofollow noopener\">ETF<\/a>) focused on leading and profitable companies heavily involved in artificial intelligence (AI), but with enough differences among themselves.<\/p>\n<p>Why an ETF? Because I&#8217;d not want to put all my (investing) eggs in one basket.<\/p>\n<p>Why AI? Because it&#8217;s poised to be the biggest secular trend in many decades or even generations.<\/p>\n<p>Why concentrated? Because I believe if investors are going to buy a very diversified ETF, they might as well buy the entire market, so to speak, and buy an S&amp;P 500 index ETF. Indeed, buying an <a href=\"https:\/\/www.fool.com\/investing\/stock-market\/indexes\/sp-500\/etfs\/?utm_source=nasdaq&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=5eea6559-1f78-42ee-9db3-dc507fc41c52\" target=\"_blank\" rel=\"nofollow noopener\">S&amp;P 500 index fund<\/a> is a good idea for many investors, and recommended by investing legend Warren Buffett. That said, over the long run, I think an AI ETF full of only leading and profitable companies will beat the S&amp;P 500 index.<\/p>\n<p>Roundhill Magnificent Seven ETF (MAGS): Overview<\/p>\n<p>And bingo! There is such an ETF &#8212; the Roundhill Magnificent Seven ETF <a href=\"https:\/\/www.nasdaq.com\/market-activity\/etf\/mags\" rel=\"nofollow noopener\" target=\"_blank\">(NYSEMKT: MAGS)<\/a>. It has seven holdings &#8212; the so-called &#8220;Magnificent Seven&#8221; stocks: Alphabet <a href=\"https:\/\/www.nasdaq.com\/market-activity\/stocks\/goog\" rel=\"nofollow noopener\" target=\"_blank\">(NASDAQ: GOOG)<\/a><a href=\"https:\/\/www.nasdaq.com\/market-activity\/stocks\/googl\" rel=\"nofollow noopener\" target=\"_blank\">(NASDAQ: GOOGL)<\/a>, Amazon <a href=\"https:\/\/www.nasdaq.com\/market-activity\/stocks\/amzn\" rel=\"nofollow noopener\" target=\"_blank\">(NASDAQ: AMZN)<\/a>, Apple <a href=\"https:\/\/www.nasdaq.com\/market-activity\/stocks\/aapl\" rel=\"nofollow noopener\" target=\"_blank\">(NASDAQ: AAPL)<\/a>, Meta Platforms <a href=\"https:\/\/www.nasdaq.com\/market-activity\/stocks\/meta\" rel=\"nofollow noopener\" target=\"_blank\">(NASDAQ: META)<\/a>, Microsoft <a href=\"https:\/\/www.nasdaq.com\/market-activity\/stocks\/msft\" rel=\"nofollow noopener\" target=\"_blank\">(NASDAQ: MSFT)<\/a>, Nvidia <a href=\"https:\/\/www.nasdaq.com\/market-activity\/stocks\/nvda\" rel=\"nofollow noopener\" target=\"_blank\">(NASDAQ: NVDA)<\/a>, and Tesla <a href=\"https:\/\/www.nasdaq.com\/market-activity\/stocks\/tsla\" rel=\"nofollow noopener\" target=\"_blank\">(NASDAQ: TSLA)<\/a>. This ETF closed at $62.93 per share on Friday, Sept. 12.<\/p>\n<p>These megacap stocks (stocks with market caps over $200 billion) were given the Magnificent Seven name a couple of years ago by a Wall Street analyst due to their strong growth and large influence on the overall market. The name comes from the title of a 1960 Western film.<\/p>\n<p>Two other main traits I like about this ETF:<\/p>\n<p>Its expense ratio is reasonable at 0.29%.<br \/>\nIt provides equal-weight exposure to the seven stocks. At each quarterly rebalancing, the stocks will be reset to an equal weighting of about 14.28% (100% divided by 7).<\/p>\n<p>Since its inception in April 2023 (almost 2.5 years), the Roundhill Magnificent Seven ETF has returned 160% &#8212; 2.4 times the S&amp;P 500&#8217;s 65.9% return.<\/p>\n<p>Roundhill Magnificent Seven ETF (MAGS): All stock holdings<\/p>\n<p>Stocks are listed in order of current weight in portfolio. Keep in mind the ETF is rebalanced quarterly to make stocks equally weighted.<\/p>\n<p>Holding No. <\/p>\n<p> Company<\/p>\n<p>Market Cap <\/p>\n<p>Wall Street&#8217;s Projected Annualized EPS Growth Over Next 5 Years<\/p>\n<p>Weight (% of Portfolio)<\/p>\n<p>1 Year\/ 10-Year Returns<\/p>\n<p>1<\/p>\n<p>Alphabet<br \/>\n$2.9 trillion<br \/>\n14.7%<br \/>\n17.72%<br \/>\n55.9% \/ 677%<\/p>\n<p>2<\/p>\n<p>Nvidia<br \/>\n$4.3 trillion<br \/>\n34.9%<br \/>\n15.00%<br \/>\n49.3% \/ 32,210%<\/p>\n<p>3<\/p>\n<p>Apple<br \/>\n$3.5 trillion<br \/>\n8.8%<br \/>\n14.13%<br \/>\n5.6% \/ 812%<\/p>\n<p>4<\/p>\n<p>Tesla<br \/>\n$1.3 trillion<br \/>\n13.4%<br \/>\n13.81%<br \/>\n72.3% \/ 2,270%<\/p>\n<p>5<\/p>\n<p>Amazon<br \/>\n$2.4 trillion<br \/>\n18.6%<br \/>\n13.30%<br \/>\n22% \/ 762%<\/p>\n<p>6<br \/>\nMeta Platforms<br \/>\n$1.9 trillion<br \/>\n12.9%<br \/>\n13.16%<br \/>\n44.3% \/ 725%<\/p>\n<p>7<br \/>\nMicrosoft<br \/>\n$3.8 trillion<br \/>\n16.6%<br \/>\n12.76%<br \/>\n20.3% \/ 1,250%<\/p>\n<p>Overall ETF<\/p>\n<p>N\/A<\/p>\n<p>Total net assets of $2.86 billion<\/p>\n<p>N\/A<\/p>\n<p>100%<\/p>\n<p>40.5% \/ N\/A<\/p>\n<p>N\/A<\/p>\n<p>S&amp;P 500<\/p>\n<p>N\/A<\/p>\n<p>N\/A<\/p>\n<p>N\/A<\/p>\n<p>19.2% \/ 300%<\/p>\n<p class=\"caption\">Data sources: Roundhill Magnificent Seven ETF, finviz.com, and YCharts. EPS = earnings per share. Data as of Sept. 12, 2025.<\/p>\n<p>All these companies are profitable leaders in their core markets, and heavily involved in AI. Nvidia produces AI tech that enables others to use AI, while the other companies mainly use AI to improve their existing products and develop new ones.<\/p>\n<p>Alphabet&#8217;s Google is the world leader in internet search. Its <a href=\"https:\/\/www.fool.com\/investing\/stock-market\/market-sectors\/information-technology\/cloud-stocks\/?utm_source=nasdaq&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=5eea6559-1f78-42ee-9db3-dc507fc41c52\" target=\"_blank\" rel=\"nofollow noopener\">cloud computing<\/a> business is No. 3 in the world, behind Amazon Web Services (AWS) and Microsoft Azure. The company also has other businesses, notably its <a href=\"https:\/\/www.fool.com\/investing\/stock-market\/market-sectors\/consumer-discretionary\/automotive-stocks\/self-driving-car-stocks\/?utm_source=nasdaq&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=5eea6559-1f78-42ee-9db3-dc507fc41c52\" target=\"_blank\" rel=\"nofollow noopener\">driverless vehicle<\/a> subsidiary, Waymo. (You can read here why I believe <a href=\"https:\/\/www.fool.com\/investing\/2025\/06\/30\/nvda-stock-best-driverless-vehicle-stock\/?utm_source=nasdaq&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=5eea6559-1f78-42ee-9db3-dc507fc41c52\" target=\"_blank\" rel=\"nofollow noopener\">Nvidia is the best driverless vehicle stock<\/a>.)<\/p>\n<p>Nvidia is often described as the world&#8217;s leading maker of AI chips &#8212; and that it is. But it&#8217;s much more. It&#8217;s the world leader in supplying technology infrastructure for enabling AI. It&#8217;s also the global leader in graphics processing units (GPUs) for computer gaming.<\/p>\n<p>Apple&#8217;s iPhone holds the No. 2 spot in the global smartphone market, behind Samsung. However, it dominates the U.S. market. The company&#8217;s services business is attractive, as it consists of recurring revenue and has been steadily growing.<\/p>\n<p>Amazon operates the world&#8217;s No. 1 <a href=\"https:\/\/www.fool.com\/investing\/stock-market\/market-sectors\/consumer-discretionary\/top-ecommerce-companies\/?utm_source=nasdaq&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=5eea6559-1f78-42ee-9db3-dc507fc41c52\" target=\"_blank\" rel=\"nofollow noopener\">e-commerce<\/a> business and the world&#8217;s No. 1 cloud computing business. It also has many other businesses, notably its Fresh and Amazon Prime Now (Whole Foods) grocery delivery operations.<\/p>\n<p>Meta Platforms operates the world&#8217;s leading social media site, Facebook, as well as Instagram, Threads, and messaging app WhatsApp.<\/p>\n<p>Microsoft&#8217;s Word has long been the world&#8217;s leading word processing software. Word is part of Microsoft Office, a suite of popular software for personal computers (PCs). Its Azure is the world&#8217;s second-largest cloud computing business.<\/p>\n<p>Tesla remains the No. 1 electric vehicle (EV) maker, by far, in the U.S. despite struggling recently. In the first half of 2025, China&#8217;s BYD surpassed Tesla as the world&#8217;s leader in all-electric vehicles by number of units sold. CEO Elon Musk touts that the company&#8217;s robotaxi and Optimus humanoid robot businesses will eventually be larger than its EV sales business. <\/p>\n<p>In short, the Roundhill Magnificent Seven ETF is poised to continue to benefit from the growth of <a href=\"https:\/\/www.fool.com\/investing\/stock-market\/market-sectors\/information-technology\/ai-stocks\/?utm_source=nasdaq&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=5eea6559-1f78-42ee-9db3-dc507fc41c52\" target=\"_blank\" rel=\"nofollow noopener\">artificial intelligence<\/a>. Technically, it doesn&#8217;t have a long-term history. But if it had existed many years ago, it&#8217;s easy to tell that its long-term performance would be very strong because the long-term performances of all its holdings have been anywhere from great to spectacular.<\/p>\n<p>Should you invest $1,000 in Listed Funds Trust &#8211; Roundhill Magnificent Seven ETF right now?<\/p>\n<p>Before you buy stock in Listed Funds Trust &#8211; Roundhill Magnificent Seven ETF, consider this:<\/p>\n<p>The Motley Fool Stock Advisor analyst team just identified what they believe are the <a href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=022e1d00-8075-418c-82a3-6bae4409d4ef&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001093%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D17514&amp;utm_source=nasdaq&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=5eea6559-1f78-42ee-9db3-dc507fc41c52\" rel=\"nofollow noopener\" target=\"_blank\">10 best stocks<\/a> for investors to buy now\u2026 and Listed Funds Trust &#8211; Roundhill Magnificent Seven ETF wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n<p>Consider when Netflix made this list on December 17, 2004&#8230; if you invested $1,000 at the time of our recommendation, you\u2019d have $640,916!* Or when Nvidia made this list on April 15, 2005&#8230; if you invested $1,000 at the time of our recommendation, you\u2019d have $1,090,012!*<\/p>\n<p>Now, it\u2019s worth noting Stock Advisor\u2019s total average return is 1,052% \u2014 a market-crushing outperformance compared to 188% for the S&amp;P 500. Don\u2019t miss out on the latest top 10 list, available when you join Stock Advisor.<\/p>\n<p><a class=\"ticker_pitch\" href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=022e1d00-8075-418c-82a3-6bae4409d4ef&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001093%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D17514%26ftm_veh%3Darticle_pitch_feed_partners%26company%3DListed%2520Funds%2520Trust%2520-%2520Roundhill%2520Magnificent%2520Seven%2520ETF&amp;utm_source=nasdaq&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=5eea6559-1f78-42ee-9db3-dc507fc41c52\" rel=\"nofollow noopener\" target=\"_blank\">See the 10 stocks \u00bb<\/a><\/p>\n<p>*Stock Advisor returns as of September 15, 2025<\/p>\n<p><a href=\"https:\/\/www.fool.com\/author\/2809\/\" rel=\"nofollow noopener\" target=\"_blank\">Beth McKenna<\/a> has positions in Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends BYD Company and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a <a href=\"https:\/\/www.fool.com\/legal\/fool-disclosure-policy\/\" rel=\"nofollow noopener\" target=\"_blank\">disclosure policy<\/a>.<\/p>\n<p class=\"body__disclaimer\">The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.<\/p>\n","protected":false},"excerpt":{"rendered":"Key Points AI is poised to be the biggest secular trend in many decades or even generations. Buying&hellip;\n","protected":false},"author":2,"featured_media":1902,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,363,364,111,139,69,145],"class_list":["post-25614","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-new-zealand","tag-newzealand","tag-nz","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/25614","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=25614"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/25614\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/1902"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=25614"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=25614"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=25614"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}