The Nasdaq-100 vs. the "Magnificent Seven": What's the Better Investment Today?

Core Insights - The article discusses the investment strategy of choosing between high-performing stocks, specifically the "Magnificent Seven," and a diversified portfolio through the Nasdaq-100 index [1][4][8] Group 1: The Magnificent Seven - The "Magnificent Seven" includes leading companies: Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla, which can be tracked individually or through the Roundhill Magnificent Seven ETF [2][4] - The Roundhill Magnificent Seven ETF has risen by 20% year-to-date, outperforming the S&P 500's 15% increase [5] - Over the past five years, all but Amazon have outperformed the Nasdaq-100 index, which has gained 115%, indicating strong performance from these stocks [6] Group 2: Nasdaq-100 Index - The Nasdaq-100 index provides exposure to the top 100 non-financial stocks, offering a more diversified portfolio compared to focusing solely on the Magnificent Seven [3][8] - The Invesco QQQ Trust, which tracks the Nasdaq-100, has also generated year-to-date returns of about 20%, similar to the Roundhill ETF [9]