EXCLUSIVE: CEO Behind MAGS ETF Says Magnificent Seven Underperformance In 2025 Doesn't Change Dominance - 'It Reinforces It'

Only three of the seven Magnificent Seven stocks beat the S&P 500 in 2025, sparking concerns of overvaluation and the need for fresh names in the well-known index. The CEO of a company with an ETF based on the index isn't concerned about the 2025 performance given the strong track record.

Magnificent Seven Still Magnificent

In a recent interview with Benzinga, Roundhill Investments CEO Dave Mazza said the Magnificent Seven stocks are still magnificent, despite only three of the seven beating the S&P 500 in 2026.

Mazza's comments come after the following returns for the Magnificent Seven stocks in 2025:

• Apple Inc (NASDAQ:AAPL): +11.5%
• Amazon.com Inc (NASDAQ:AMZN): +4.8%
• Alphabet Inc (NASDAQ:GOOGL): +65.2%
• Meta Platforms (NASDAQ:META): +10.2%
• Microsoft Corporation (NASDAQ:MSFT): +15.5%
• NVIDIA Corporation (NASDAQ:NVDA): +34.8%
• Tesla Inc (NASDAQ:TSLA): +18.6%

Only Alphabet, Nvidia and Tesla beat the 16.6% gains for the SPDR S&P 500 ETF Trust (NYSE:SPY) for the full 2025 year.

"The Magnificent Seven was never about every stock outperforming every year. They're about scale, durability and growth. These companies still generate and are expected to generate far stronger revenue and earnings growth than the broader market."

Roundhill is the company behind the Roundhill Magnificent Seven ETF (BATS:MAGS), an ETF that holds equal-weight positions in the seven stocks, with quarterly rebalances.

"What changed in 2025 was dispersion. Leadership rotated within the group, which is healthy and exactly what you expect as markets broaden."

Mazza said Alphabet and Nvidia leading the way, while others struggle, doesn't change the importance of the index.

"That doesn't weaken the Magnificent Seven story. It reinforces it. These companies are still the center of U.S. growth and index-level profitability."

No Magnificent Seven Changes Needed, Lasting Power Here

Asked if he could change the components of the Magnificent Seven by adding, subtracting or changing the number of components, Mazza told Benzinga he wouldn't make any changes.

"The Magnificent Seven is the Magnificent Seven, and the fact that the name stuck actually matters," Mazza told Benzinga.

The Roundhill CEO said there have been other labels given to baskets of stocks that haven't lasted.

"This one endured because it captured something real. Despite all skepticism around valuation debates and periodic drawdowns, they are typically the seven largest market cap companies in the U.S."

While he personally wouldn't make any changes to the Magnificent Seven, Mazza said investors will likely argue about potential changes.

Mazza named Broadcom Inc (NASDAQ:AVGO) and Palantir Technologies (NASDAQ:PLTR) as stocks that investors mention a lot.

"What these adjacent names do not have is the track record of remarkable resiliency that the Magnificent Seven have demonstrated consistently over the years. Consequently, the Magnificent Seven grouping has staying power. There's value in keeping it intact."

Photo: Shutterstock