MAGS: The End Of An Era (Rating Downgrade)

  • The Mag 7 stocks, once market leaders, are now laggards with diverse sector performances, making MAGS ETF less relevant for alpha generation. MAGS ETF, launched in 2023, offers equal-weight exposure but has complex diversification rules and a high expense ratio of 0.29%. The Mag 7 are a disparate group of stocks and are likely to diverge given the backdrop. Holding all 7 stocks in MAGS is not attractive.