Magnificent 7
The "Magnificent Seven" stocks are a group of seven large-cap technology companies that have been driving growth in the stock market for several years. They are:
- Alphabet (GOOGL): The parent company of Google, Alphabet is the world's leading search engine and advertising platform.
- Amazon (AMZN): The world's largest online retailer, Amazon also has a growing cloud computing business.
- Apple (AAPL): The world's most valuable company, Apple designs and sells smartphones, computers, tablets, and other consumer electronics.
- Meta Platforms (META): The parent company of Facebook, Instagram, and WhatsApp, Meta is the world's largest social media company.
- Microsoft (MSFT): The world's largest software company, Microsoft produces the Windows operating system, Office productivity suite, and Xbox gaming console.
- Nvidia (NVDA): A leading manufacturer of graphics processing units (GPUs), Nvidia is also developing artificial intelligence (AI) and autonomous driving technology.
- Tesla (TSLA): The world's leading electric vehicle maker, Tesla is also developing battery storage and solar energy products.
The Magnificent Seven stocks have been outperforming the broader market for several years, and they are expected to continue to do so in the future. This is due to several factors, including:
- Their strong track records of innovation and growth: The Magnificent Seven companies are all leaders in their respective industries, and they have a proven track record of innovation and growth.
- Their large and growing addressable markets: The markets that the Magnificent Seven companies serve are all large and growing, which provides them with ample opportunities for growth.
- Their strong balance sheets: The Magnificent Seven companies all have strong balance sheets, which gives them the financial flexibility to invest in future growth.
However, there are also some risks associated with investing in the Magnificent Seven stocks. These risks include:
- Valuation: The Magnificent Seven stocks are all highly valued, which makes them more susceptible to corrections in the stock market.
- Regulation: The tech industry is facing increasing scrutiny from regulators, which could pose a risk to the profits of the Magnificent Seven companies.
- Competition: The tech industry is a very competitive one, and the Magnificent Seven companies face challenges from new and existing competitors.
Despite these risks, the Magnificent Seven stocks are still attractive investments for many investors. They offer the potential for high returns, and they are well-positioned to benefit from the long-term growth of the tech industry.
Asset Allocation
| Position | Category/Sector | Target Weight |
|---|---|---|
AAPL Apple Inc | Technology | 14.29% |
AMZN Amazon.com, Inc. | Consumer Cyclical | 14.29% |
GOOGL Alphabet Inc Class A | Communication Services | 14.29% |
META Meta Platforms, Inc. | Communication Services | 14.29% |
MSFT Microsoft Corporation | Technology | 14.29% |
NVDA NVIDIA Corporation | Technology | 14.29% |
TSLA Tesla, Inc. | Consumer Cyclical | 14.29% |
Performance
Performance Chart
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The earliest data available for this chart is May 18, 2012, corresponding to the inception date of META
Returns By Period
As of May 30, 2025, the Magnificent 7 returned -2.51% Year-To-Date and 36.80% of annualized return in the last 10 years.
| YTD | 1M | 6M | 1Y | 5Y* | 10Y* | |
|---|---|---|---|---|---|---|
^GSPC S&P 500 | 0.52% | 6.32% | -1.44% | 12.25% | 14.20% | 10.84% |
| Magnificent 7 | -2.51% | 13.80% | 4.78% | 27.05% | 35.46% | 36.80% |
| Portfolio components: | ||||||
TSLA Tesla, Inc. | -11.24% | 22.74% | 7.67% | 103.43% | 45.13% | 35.94% |
AMZN Amazon.com, Inc. | -6.24% | 9.77% | -0.02% | 13.01% | 10.99% | 25.31% |
GOOGL Alphabet Inc Class A | -9.11% | 7.31% | 1.79% | -1.83% | 19.23% | 20.19% |
AAPL Apple Inc | -19.96% | -5.21% | -14.68% | 5.57% | 20.94% | 21.20% |
META Meta Platforms, Inc. | 10.27% | 16.34% | 13.52% | 36.48% | 23.55% | 23.22% |
MSFT Microsoft Corporation | 9.24% | 16.62% | 8.85% | 7.70% | 21.17% | 27.33% |
NVDA NVIDIA Corporation | 3.66% | 27.67% | 2.86% | 21.25% | 73.54% | 74.17% |
Monthly Returns
The table below presents the monthly returns of Magnificent 7, with color gradation from worst to best to easily spot seasonal factors. Returns are adjusted for dividends.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2.33% | -8.15% | -10.31% | 0.71% | 14.82% | -2.51% | |||||||
| 2024 | 2.03% | 11.97% | 2.32% | -2.11% | 8.32% | 9.20% | -0.50% | -0.54% | 6.71% | -0.22% | 8.78% | 6.05% | 64.54% |
| 2023 | 21.09% | 6.66% | 13.13% | 0.94% | 15.42% | 9.25% | 5.29% | -0.75% | -5.48% | -2.78% | 11.67% | 3.82% | 107.05% |
| 2022 | -8.71% | -6.76% | 8.27% | -17.51% | -3.87% | -10.69% | 16.11% | -6.58% | -11.89% | -4.96% | 6.42% | -12.43% | -44.75% |
| 2021 | 1.88% | -1.60% | 2.10% | 9.95% | -2.11% | 9.75% | 2.83% | 7.16% | -5.60% | 14.19% | 6.18% | -1.94% | 49.55% |
| 2020 | 11.93% | -2.12% | -9.02% | 22.30% | 7.57% | 11.09% | 13.39% | 25.68% | -9.12% | -2.83% | 12.11% | 6.06% | 117.95% |
| 2019 | 8.19% | 2.03% | 5.39% | 4.08% | -12.21% | 10.10% | 4.56% | -2.71% | 2.26% | 10.48% | 5.29% | 8.68% | 53.93% |
| 2018 | 13.26% | -0.86% | -7.77% | 3.22% | 7.29% | 3.03% | 0.44% | 8.47% | -2.81% | -7.20% | -4.30% | -8.94% | 1.18% |
| 2017 | 7.97% | 2.17% | 5.26% | 4.53% | 9.84% | -1.21% | 3.76% | 4.23% | -0.79% | 8.68% | 0.02% | -0.34% | 53.08% |
| 2016 | -6.87% | -2.43% | 10.60% | -1.75% | 7.77% | -2.97% | 11.27% | 0.83% | 4.12% | 0.34% | 1.07% | 5.96% | 29.61% |
| 2015 | -0.95% | 7.23% | -3.05% | 7.75% | 2.14% | -0.43% | 7.95% | -2.50% | 1.10% | 11.08% | 5.37% | 0.66% | 41.44% |
| 2014 | 2.64% | 11.21% | -6.00% | -0.43% | 4.17% | 4.17% | -0.41% | 8.07% | -1.90% | 0.02% | 4.84% | -5.01% | 21.90% |
Expense Ratio
Magnificent 7 has an expense ratio of 0.00%, meaning no management fees are charged. Below, you can find the expense ratios of the portfolio's funds side by side and easily compare their relative costs.
Risk-Adjusted Performance
Risk-Adjusted Performance Rank
The current rank of Magnificent 7 is 57, indicating average performance compared to other portfolios on our website. Here’s a breakdown of how it compares using common performance measures.
Risk-Adjusted Performance Indicators
This table presents a comparison of risk-adjusted performance metrics for positions. Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Martin ratio | |
|---|---|---|---|---|---|
TSLA Tesla, Inc. | 1.44 | 2.15 | 1.26 | 1.71 | 4.04 |
AMZN Amazon.com, Inc. | 0.38 | 0.80 | 1.10 | 0.45 | 1.15 |
GOOGL Alphabet Inc Class A | -0.06 | 0.16 | 1.02 | -0.04 | -0.09 |
AAPL Apple Inc | 0.17 | 0.49 | 1.07 | 0.17 | 0.53 |
META Meta Platforms, Inc. | 0.99 | 1.54 | 1.20 | 1.04 | 3.13 |
MSFT Microsoft Corporation | 0.30 | 0.61 | 1.08 | 0.31 | 0.70 |
NVDA NVIDIA Corporation | 0.36 | 1.08 | 1.14 | 0.83 | 2.04 |
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Dividends
Dividend yield
Magnificent 7 provided a 0.29% dividend yield over the last twelve months.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 0.29% | 0.26% | 0.18% | 0.27% | 0.18% | 0.24% | 0.36% | 0.56% | 0.52% | 0.68% | 0.78% | 0.84% |
| Portfolio components: | ||||||||||||
TSLA Tesla, Inc. | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
AMZN Amazon.com, Inc. | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
GOOGL Alphabet Inc Class A | 0.47% | 0.32% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
AAPL Apple Inc | 0.51% | 0.40% | 0.49% | 0.70% | 0.49% | 0.61% | 1.04% | 1.79% | 1.45% | 1.93% | 1.93% | 1.67% |
META Meta Platforms, Inc. | 0.31% | 0.34% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
MSFT Microsoft Corporation | 0.71% | 0.73% | 0.74% | 1.06% | 0.68% | 0.94% | 1.20% | 1.69% | 1.86% | 2.37% | 2.33% | 2.48% |
NVDA NVIDIA Corporation | 0.02% | 0.02% | 0.03% | 0.11% | 0.05% | 0.12% | 0.27% | 0.46% | 0.29% | 0.45% | 1.20% | 1.70% |
Drawdowns
Drawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way. Drawdowns are calculated considering price movements and all distributions paid, if any.
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Worst Drawdowns
The table below displays the maximum drawdowns of the Magnificent 7. A maximum drawdown is a measure of risk, indicating the largest reduction in portfolio value due to a series of losing trades.
The maximum drawdown for the Magnificent 7 was 48.84%, occurring on Dec 28, 2022. Recovery took 128 trading sessions.
The current Magnificent 7 drawdown is 8.17%.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -48.84% | Nov 22, 2021 | 277 | Dec 28, 2022 | 128 | Jul 5, 2023 | 405 |
| -35.01% | Feb 20, 2020 | 20 | Mar 18, 2020 | 44 | May 20, 2020 | 64 |
| -29.88% | Dec 18, 2024 | 75 | Apr 8, 2025 | — | — | — |
| -27.49% | Sep 4, 2018 | 78 | Dec 24, 2018 | 203 | Oct 15, 2019 | 281 |
| -19.45% | Dec 30, 2015 | 28 | Feb 9, 2016 | 39 | Apr 6, 2016 | 67 |
Volatility
Volatility Chart
The chart below shows the rolling one-month volatility.
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Diversification
Diversification Metrics
Number of Effective Assets
The portfolio contains 7 assets, with an effective number of assets of 7.00, reflecting the diversification based on asset allocation. This number of effective assets indicates a moderate level of diversification, where some assets may have a more significant influence on overall performance.
Asset Correlations Table
| ^GSPC | TSLA | META | AAPL | NVDA | AMZN | MSFT | GOOGL | Portfolio | |
|---|---|---|---|---|---|---|---|---|---|
| ^GSPC | 1.00 | 0.45 | 0.56 | 0.64 | 0.61 | 0.64 | 0.73 | 0.68 | 0.77 |
| TSLA | 0.45 | 1.00 | 0.34 | 0.38 | 0.39 | 0.41 | 0.37 | 0.38 | 0.69 |
| META | 0.56 | 0.34 | 1.00 | 0.45 | 0.48 | 0.57 | 0.50 | 0.60 | 0.71 |
| AAPL | 0.64 | 0.38 | 0.45 | 1.00 | 0.47 | 0.50 | 0.56 | 0.53 | 0.68 |
| NVDA | 0.61 | 0.39 | 0.48 | 0.47 | 1.00 | 0.52 | 0.56 | 0.51 | 0.74 |
| AMZN | 0.64 | 0.41 | 0.57 | 0.50 | 0.52 | 1.00 | 0.61 | 0.65 | 0.76 |
| MSFT | 0.73 | 0.37 | 0.50 | 0.56 | 0.56 | 0.61 | 1.00 | 0.64 | 0.73 |
| GOOGL | 0.68 | 0.38 | 0.60 | 0.53 | 0.51 | 0.65 | 0.64 | 1.00 | 0.74 |
| Portfolio | 0.77 | 0.69 | 0.71 | 0.68 | 0.74 | 0.76 | 0.73 | 0.74 | 1.00 |