Magnificent 7 index builder to set your own Mag 7 weights instead of MAGS ETF or the Bloomberg Magnificent 7 Index
Every fund decides for you how much Nvidia and how much Tesla you own. MAGS gives each a fixed seventh. QQQ waters the seven down to 37%. Pick the weights yourself, drop a name or cap one, and see how the basket would have done next to the S&P 500. Then buy the seven shares at your own broker.
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In short
A Magnificent 7 index holds Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla and nothing else. The Bloomberg Magnificent 7 Index and the Roundhill MAGS ETF (0.30% a year) both use equal weight, about 14.3% each, reset every quarter. Broad funds hold the same seven by size: 59.3% of Vanguard's MGK, 37.4% of QQQ, 34.5% of the S&P 500. Building your own Magnificent 7 index means choosing those weights yourself, then backtesting the basket against the S&P 500 before you buy the shares.
Same seven companies, three different indexes
How should you weight a Magnificent 7 index?
Market cap weight
The seven at the weights the S&P 500 gives them, rescaled to 100%. Nvidia leads at 24.5%, Apple 21.1%, Tesla trails at 4.4%. This is what you already own through an index fund, concentrated.
Equal weight
14.29% in each, reset quarterly, the rule MAGS and the Bloomberg index use. It more than triples Tesla and cuts Nvidia by 40%, so it is a bet on the group, not on its leaders.
Your own rule
The red example drops Tesla, weights the other six by size and caps any company at 20%. Nvidia, Apple and Microsoft land on 20% each, Alphabet 18.8%, Amazon 12.8%, Meta 8.4%. No fund sells this.
From each issuer's holdings file
How much Magnificent 7 does each ETF hold?
Only MAGS is all seven. Every other fund mixes them with dozens or hundreds of other stocks and weights them by size, so Nvidia, Apple and Microsoft carry most of the share.
MAGS
Roundhill Magnificent Seven
All seven at equal weight, about 38% as shares and the rest through swaps, Oct 5
100% 0.30% fee
MGK
Vanguard Mega Cap Growth
56 stocks, cap weighted, Aug 31
59.3% 0.05% fee
VUG
Vanguard Growth
146 stocks, cap weighted, Aug 31
56.7% 0.03% fee
SPYG
SPDR Portfolio S&P 500 Growth
153 stocks, cap weighted, Oct 2
51.3% 0.04% fee
MGC
Vanguard Mega Cap
172 stocks, growth and value, Aug 31
40.2% 0.05% fee
XLK
Technology Select Sector SPDR
Only Nvidia, Apple and Microsoft, Oct 2
39.4% 0.08% fee
QQQ
Invesco QQQ Trust
104 holdings, Nasdaq-100, Oct 2
37.4% 0.18% fee
SPY
SPDR S&P 500 ETF Trust
The S&P 500 itself, Oct 1
34.5% 0.0945% fee
VOO
Vanguard S&P 500
The S&P 500 itself, Aug 31
33.5% 0.03% fee
Read the list two ways. If you want the seven at their natural size, Vanguard's VUG gets you 56.7% of the way there for 0.03% a year, and MGK goes to 59.3% for 0.05%. The other 40% is still growth stocks such as Broadcom, Eli Lilly and Visa, which you may or may not want. If you want the seven and only the seven, MAGS is the single ticker, and you pay ten times VUG's fee for the equal weighting and the purity.
XLK looks concentrated at 39.4%, but it holds just three of the seven. S&P files Amazon and Tesla under consumer discretionary and Alphabet and Meta under communication services, so a technology sector fund leaves all four out. QQQ, the fund most people reach for, puts 37.4% in the seven and charges 0.18%. If you are deciding between MAGS and QQQ as a purchase, the best Magnificent 7 ETF ranking puts every fund here on one cost per dollar of Mag 7 basis.
// MAGS holdings, October 5, 2026
What does MAGS actually own?
Less stock than you might think. About 38% of the fund's exposure to the seven was held as shares. The rest came through total return swaps with banks, labeled GS and ML in the holdings list, with Treasury bills making up 37.2% of the fund and a Roundhill ultra short duration fund another 6.1% as the cash behind those swaps.
This is not a flaw Roundhill hides. Its fund page says it uses swaps to maintain compliance with the diversification tests for regulated investment companies, which cap any single issuer at 25% of a fund and require half of it in positions under 5%. Seven stocks at 14.3% each cannot pass that test directly. You can. Seven positions in your own brokerage account have no such rule, no swap counterparty and no fund fee.
From an opinion about seven stocks to a basket you can buy
How to build your own Magnificent 7 index in four steps
1
Add the seven
NVDA, AAPL, MSFT, GOOGL, AMZN, META, TSLA. Leave one out if you do not want it, or add Broadcom if you think the list is stale.
2
Choose the weighting
Equal weight like MAGS, market cap like the S&P 500, or your own numbers, for example a 20% ceiling on any company.
3
Backtest it
See return, drawdown and the gap to the S&P 500 over the same dates, with a quarterly rebalance if you want one, and add MAGS as a one line index to compare.
4
Track it, then buy it
Follow it daily against the benchmark, export the weights, and buy the seven shares at your own broker, fractional shares included.
Test the weighting before you test the return. The seven are among the most volatile large companies in the US, and Tesla alone has had drawdowns of more than half its value. An equal weight basket gives Tesla three times its cap weight, so it will swing harder than the cap weight version in both directions. Compare the maximum drawdown of each version over ten years, through 2020 and 2022, and decide which loss you could sit through. Backtests are hypothetical, and past returns do not predict future ones.
Then remember what the seven already are in the rest of your money. If you hold an S&P 500 fund, a third of it is these companies; adding a Mag 7 basket on top raises that share fast. You can compare your portfolio to SPY and the S&P 500 with the basket included to see the combined weight, and if the answer is too much, the S&P 493 index page shows how to hold the market without them.
Three ways to own the Magnificent 7, compared honestly
MAGS vs QQQ vs your own Magnificent 7 index
| MAGS | QQQ | Your own index, designed in Indexes | |
|---|---|---|---|
| Mag 7 share | 100%, about 38% as shares | 37.4% | Whatever you set, held as shares |
| Weighting | Equal, reset quarterly | Modified market cap | Equal, cap, capped or custom |
| Yearly cost on $100,000 | $300 | $180 | No fund fee; software from $24 a month billed yearly |
| Drop or cap a company | No | No | Yes |
| Tax losses per stock | No | No | Yes, in a taxable account |
| Where it falls short | Highest fee, swap counterparties | Not a Mag 7 fund, 96 other holdings | You place seven trades and rebalance |
MAGS wins when you want the seven in one ticker inside an IRA and never want to think about rebalancing. QQQ wins when the seven are a large part of what you want but not all of it. Your own index wins when the weights matter to you, when you want a company out, or when you hold the basket in a taxable account and want to sell a single loser for a tax loss while keeping the other six. Seven positions is a small enough basket that the upkeep is a few trades a quarter.
What Indexes does and does not do: it is index construction, backtesting and tracking software. It does not hold money, place trades or give investment advice. You design and test the Magnificent 7 index here and hold the shares wherever you already invest. To set the same weight on every name automatically, the equal weight index builder keeps each line at its target with a scheduled rebalance.
Magnificent 7 index and MAGS questions
What people ask before they buy the Magnificent 7
Is there a Magnificent 7 index?
Yes. The Bloomberg Magnificent 7 Index (total return ticker BM7T) holds Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla at equal weight and resets them quarterly, in March, June, September and December. It was launched on August 11, 2023. No US ETF tracks it directly; the Roundhill Magnificent Seven ETF (MAGS) follows the same equal weight idea under active management.
Is there an ETF for the Magnificent 7?
Yes. The Roundhill Magnificent Seven ETF (MAGS) is the only US fund that holds just the seven, at equal weight with a quarterly rebalance, for 0.30% a year. It had about $5.6 billion in assets on October 5, 2026. Roundhill (MAGX) and Direxion (QQQU) also sell daily 2x leveraged versions at about 0.95% to 0.98%.
What is the expense ratio of MAGS?
MAGS charges 0.30% a year, which is $300 on $100,000. Roundhill lists a gross expense ratio of 0.30%. That is ten times the 0.03% of Vanguard's VUG, which holds 56.7% of its assets in the same seven companies, but VUG weights them by size and adds 138 other growth stocks.
Is MAGS equal weight?
Yes. MAGS targets one seventh of the fund in each company, about 14.3%, and resets to equal weight every quarter. Between resets the winners drift above 14.3% and the laggards below it. On October 5, 2026 its share and swap positions in each company were all close to that target.
Why does MAGS use swaps?
Because a registered fund cannot hold seven stocks at 14.3% each and still pass the tax diversification test for regulated investment companies, which caps any single issuer at 25% and requires half the fund in positions under 5%. Roundhill says it uses total return swaps to stay compliant. On October 5, 2026 about 38% of the fund's exposure was in shares.
How much of QQQ is the Magnificent 7?
The Magnificent 7 were 37.44% of Invesco QQQ on October 2, 2026: Nvidia 8.42%, Apple 7.27%, Microsoft 5.74%, Alphabet 5.82% across its two share classes, Amazon 4.05%, Meta 3.23% and Tesla 2.91%. QQQ charges 0.18% since its December 2025 conversion to an open end fund.
Can I build my own Magnificent 7 index?
Yes. Add the seven tickers, choose equal weight, cap weight or your own numbers, and backtest the basket against the S&P 500 here. Then buy the shares at your own broker. Holding them yourself means no fund fee, no swaps, and the freedom to drop a name or cap one, which no fund offers.
Equal weight or market cap for the Magnificent 7?
It depends on whether you want a bet on the group or on its biggest members. Cap weight puts 24.5% in Nvidia and 4.4% in Tesla; equal weight puts 14.3% in each, which more than triples Tesla's share. Backtest both over the same dates and compare the maximum drawdown before the return, because equal weight leans much harder on Tesla.
Sources
Bloomberg Magnificent 7 Index weighting, rebalance months and inception date from Bloomberg's published index methodology. MAGS expense ratio, equal weight target, quarterly rebalance and swap rationale from roundhillinvestments.com; MAGS holdings and assets as listed on October 5, 2026. MGK, VUG, MGC and VOO holdings and expense ratios from Vanguard, as of August 31, 2026. SPY, SPYG and XLK holdings from State Street's daily holdings files (SPY October 1, SPYG and XLK October 2, 2026), fees from ssga.com. QQQ holdings as of October 2, 2026; QQQ's 0.18% fee from Invesco's December 2025 announcement of its open end conversion. MAGX and QQQU fees from their issuers' fund pages. The cap weight and custom columns of the weighting chart are our own arithmetic from the SPY weights. Holdings and fees change, so confirm them on the fund page before you buy. Indexes is not affiliated with any fund issuer, index provider or broker named here. We make index construction and backtesting software: we do not manage money, place trades or give investment advice, and backtested results are hypothetical.
Weight the Magnificent 7 your way and test it against the S&P 500
Equal, by size or by your own rule. Backtest the basket over the same dates as the index, track it every day, and buy the seven shares wherever you invest.
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