This Artificial Intelligence (AI) ETF Crushes Market Returns By 2.4X Since Launch - Exclusively Profitable Companies Portfolio
Forget chasing speculative tech dreams—this AI ETF delivers real performance with actual profits.
Market-Dominating Returns
Since its inception, this fund hasn't just beaten the market—it's lapped it with 2.4 times the returns. No vaporware, no promises, just cold hard performance numbers that make traditional growth funds look like they're moving in slow motion.
Profit-First Filter
Every single holding clears one non-negotiable bar: profitability. Cuts through the AI hype cycle by bypassing cash-burning startups and moonshot ventures. Filters out companies bleeding red ink—because apparently that's a radical concept in tech investing.
The fund's strategy reads like a revenge fantasy against Silicon Valley's 'growth at all costs' mentality. Focuses exclusively on AI players already generating real revenue, not just PowerPoint presentations and visionary tweets.
While Wall Street analysts debate whether AI valuations make sense, this ETF quietly keeps printing money—proving once again that sometimes the most disruptive technology in finance is actually making a profit.
Image source: Getty Images.
An AI ETF that's concentrated and full of leading and profitable companies
This answer to my question popped into my head: I'd want a concentrated exchange-traded fund (ETF) focused on leading and profitable companies heavily involved in artificial intelligence (AI), but with enough differences among themselves.
Why an ETF? Because I'd not want to put all my (investing) eggs in one basket.
Why AI? Because it's poised to be the biggest secular trend in many decades or even generations.
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 anindex ETF. Indeed, buying an S&P 500 index fund 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&P 500 index.
Roundhill Magnificent Seven ETF (MAGS): Overview
And bingo! There is such an ETF -- the(MAGS 1.92%). It has seven holdings -- the so-called "Magnificent Seven" stocks:(GOOG 4.38%) (GOOGL 4.53%), (AMZN 1.42%),(AAPL 1.06%),(META 1.18%),(MSFT 1.01%),(NVDA -0.10%), and(TSLA 3.54%). This ETF closed at $62.93 per share on Friday, Sept. 12.
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.
Two other main traits I like about this ETF:
- Its expense ratio is reasonable at 0.29%.
- It 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).
Since its inception in April 2023 (almost 2.5 years), the Roundhill Magnificent Seven ETF has returned 160% -- 2.4 times the S&P 500's 65.9% return.
Roundhill Magnificent Seven ETF (MAGS): All stock holdings
Stocks are listed in order of current weight in portfolio. Keep in mind the ETF is rebalanced quarterly to make stocks equally weighted.
|
1 |
Alphabet | $2.9 trillion | 14.7% | 17.72% | 55.9% / 677% |
|
2 |
Nvidia | $4.3 trillion | 34.9% | 15.00% | 49.3% / 32,210% |
|
3 |
Apple | $3.5 trillion | 8.8% | 14.13% | 5.6% / 812% |
|
4 |
Tesla | $1.3 trillion | 13.4% | 13.81% | 72.3% / 2,270% |
|
5 |
Amazon | $2.4 trillion | 18.6% | 13.30% | 22% / 762% |
| 6 | Meta Platforms | $1.9 trillion | 12.9% | 13.16% | 44.3% / 725% |
| 7 | Microsoft | $3.8 trillion | 16.6% | 12.76% | 20.3% / 1,250% |
|
Overall ETF |
N/A |
Total net assets of $2.86 billion |
N/A |
100% |
40.5% / N/A |
|
N/A |
S&P 500 |
N/A |
N/A |
N/A |
19.2% / 300% |
Data sources: Roundhill Magnificent Seven ETF, finviz.com, and YCharts. EPS = earnings per share. Data as of Sept. 12, 2025.
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.
Alphabet's Google is the world leader in internet search. Its cloud computing business is No. 3 in the world, behind Amazon Web Services (AWS) and Microsoft Azure. The company also has other businesses, notably its driverless vehicle subsidiary, Waymo. (You can read here why I believe Nvidia is the best driverless vehicle stock.)
Nvidia is often described as the world's leading Maker of AI chips -- and that it is. But it's much more. It's the world leader in supplying technology infrastructure for enabling AI. It's also the global leader in graphics processing units (GPUs) for computer gaming.
Apple's iPhone holds the No. 2 spot in the global smartphone market, behind. However, it dominates the U.S. market. The company's services business is attractive, as it consists of recurring revenue and has been steadily growing.
Amazon operates the world's No. 1 e-commerce business and the world's No. 1 cloud computing business. It also has many other businesses, notably its Fresh and Amazon Prime Now (Whole Foods) grocery delivery operations.
Meta Platforms operates the world's leading social media site, Facebook, as well as Instagram, Threads, and messaging app WhatsApp.
Microsoft's Word has long been the world'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's second-largest cloud computing business.
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'ssurpassed Tesla as the world's leader in all-electric vehicles by number of units sold. CEO Elon Musk touts that the company's robotaxi and Optimus humanoid robot businesses will eventually be larger than its EV sales business.
In short, the Roundhill Magnificent Seven ETF is poised to continue to benefit from the growth of artificial intelligence. Technically, it doesn't have a long-term history. But if it had existed many years ago, it'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.
