Roundhill Magnificent Seven ETF (MAGS)MAGS

ETF Roundhill Magnificent Seven ETF: An Overview

Profile:

The Roundhill Magnificent Seven ETF (NYSE: MAGA) is a passively managed ETF that invests in seven of the largest and most well-known online retailers in the world. These retailers include Amazon, Alibaba, JD.com, eBay, MercadoLibre, Shopify, and Etsy. The ETF seeks to track the performance of the Solactive Magnificent Seven Index, which is comprised of these seven companies. MAGA was launched in March 2021 and has an expense ratio of 0.55%.

Objective:

The primary investment goal of the ETF is to provide investors with exposure to the growth potential of the online retail sector. The ETF aims to achieve this by investing in a concentrated portfolio of leading online retailers who are expected to benefit from the continued growth of e-commerce.

Issuer:

Roundhill Investments is the issuer of MAGA. Roundhill is a relatively new ETF issuer, having been founded in 2018. They currently have 10 ETFs under management, with a total AUM of approximately $1.2 billion. Roundhill has a good reputation for providing innovative and thematic ETFs.

Market Share:

MAGA has a relatively small market share in the online retail ETF space. The largest online retail ETF is the Amplify Online Retail ETF (IBUY), which has a market share of approximately 75%. However, MAGA is still a relatively new ETF and has been gaining popularity in recent months.

Total Net Assets:

As of October 27, 2023, MAGA has total net assets of approximately $110 million.

Moat:

The ETF's main competitive advantage is its focus on a concentrated portfolio of leading online retailers. This approach allows investors to gain exposure to the growth potential of the online retail sector without having to pick individual stocks. Additionally, MAGA's relatively low expense ratio makes it an attractive option for cost-conscious investors.

Financial Performance:

Since its inception, MAGA has outperformed the Solactive Magnificent Seven Index. The ETF has also outperformed the broader market, as represented by the S&P 500 Index. However, it is important to note that the ETF is still relatively new and its performance may not be indicative of future results.

Growth Trajectory:

The online retail sector is expected to continue to grow in the coming years. This growth is being driven by several factors, including the increasing adoption of e-commerce, the rising popularity of mobile shopping, and the growing demand for faster and more convenient shopping options. This growth trajectory suggests that MAGA could continue to outperform the broader market in the future.

Liquidity:

MAGA has an average trading volume of approximately 10,000 shares per day. This makes the ETF relatively liquid, which means that investors should be able to buy and sell shares easily without significantly impacting the price. The ETF also has a tight bid-ask spread, which further enhances its liquidity.

Market Dynamics:

Several factors could impact the performance of MAGA in the future. These factors include the overall health of the economy, the growth of the online retail sector, and the competitive landscape. Investors should carefully consider these factors before investing in MAGA.

Competitors:

The main competitors of MAGA include the Amplify Online Retail ETF (IBUY), the ProShares Online Retail ETF (ONLN), and the Global X E-commerce ETF (EBIZ).

Expense Ratio:

MAGA has an expense ratio of 0.55%. This is a relatively low expense ratio for an actively managed ETF.

Investment approach and strategy:

MAGA is a passively managed ETF that tracks the Solactive Magnificent Seven Index. The ETF invests in a concentrated portfolio of seven leading online retailers. The ETF's portfolio is rebalanced on a quarterly basis.

Key Points:

• Invests in seven leading online retailers
• Seeks to track the Solactive Magnificent Seven Index
• Expense ratio of 0.55%
• Relatively new ETF with a growing track record
• Concentrated portfolio provides exposure to the growth potential of the online retail sector
• Relatively liquid with a tight bid-ask spread

Risks:

• The ETF is concentrated in a small number of stocks, which could increase its volatility.
• The online retail sector is competitive and subject to disruption.
• The ETF's performance is dependent on the performance of the underlying index.

Who Should Consider Investing:

MAGA is a suitable investment for investors who are looking for:

• Exposure to the growth potential of the online retail sector
• A diversified portfolio of leading online retailers
• A relatively low-cost investment

Fundamental Rating Based on AI:

Based on an AI-based analysis of the factors mentioned above, MAGA receives a fundamental rating of 7 out of 10. This rating is based on the ETF's strong track record, competitive advantages, and growth potential. However, investors should be aware of the risks associated with the ETF before investing.

Resources and Disclaimers:

• Roundhill Investments website: https://www.roundhillinvestments.com/etfs/maga/
• Solactive Magnificent Seven Index: https://www.solactive.com/indices/?index=DE000SL0MAG7
• Morningstar ETF report: https://www.morningstar.com/etfs/arcx/maga/quote

Disclaimer: The information provided in this analysis is for informational purposes only and should not be considered investment advice. Investors should carefully consider their own investment objectives, risk tolerance, and financial circumstances before making any investment decisions.