Magnificent Seven ETF Holds 33% S&P 500 Market Cap Impact

The Magnificent Seven stocks constitute about 33% of the S&P 500's market cap. The Roundhill Magnificent Seven ETF (MAGS), launched in April 2023, has an expense ratio of 0.3% and has produced a total return of 163% since inception. This ETF equally weights its components, allowing each stock to represent approximately 14.3% of the portfolio. Investors should note that the ETF experienced a maximum drawdown of 30% over the last three years, while the S&P 500's largest decline was 19%. Notably, Tesla (TSLA) has a P/E ratio of 342.