The Motley Foolยท2025-09-16 01:00Core Viewpoint - The Roundhill Magnificent Seven ETF (MAGS) is highlighted as a promising investment opportunity focused on leading companies in the artificial intelligence (AI) sector, with a strong performance track record since its inception [5][7][16]. Group 1: ETF Overview - The Roundhill Magnificent Seven ETF (MAGS) includes seven major holdings: Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla, which are all heavily involved in AI [5][6]. - The ETF closed at $62.93 per share on September 12, 2023, and has returned 160% since its inception in April 2023, significantly outperforming the S&P 500's 65.9% return during the same period [7][5]. Group 2: Company Profiles - Alphabet: Market cap of $2.9 trillion, projected annualized EPS growth of 14.7%, and a weight of 55.9% in the ETF [9]. - Nvidia: Market cap of $4.3 trillion, with a projected annualized EPS growth of 34.9%, and a weight of 49.3% in the ETF [9]. - Apple: Market cap of $3.5 trillion, projected annualized EPS growth of 8.8%, and a weight of 5.6% in the ETF [9]. - Tesla: Market cap of $1.3 trillion, projected annualized EPS growth of 13.4%, and a weight of 72.3% in the ETF [9]. - Amazon: Market cap of $2.4 trillion, projected annualized EPS growth of 18.6%, and a weight of 22% in the ETF [9]. - Meta Platforms: Market cap of $1.9 trillion, projected annualized EPS growth of 12.9%, and a weight of 44.3% in the ETF [9]. - Microsoft: Market cap of $3.8 trillion, projected annualized EPS growth of 16.6%, and a weight of 20.3% in the ETF [9]. Group 3: Investment Rationale - The ETF is designed to provide concentrated exposure to leading and profitable companies in AI, which is expected to be a significant secular trend for decades [3][4]. - The expense ratio of the ETF is reasonable at 0.29%, and it provides equal-weight exposure to its seven holdings, rebalancing quarterly to maintain equal weighting [12].