Magnificent Seven ~ Amazon, Apple, Alphabet, Microsoft, Meta Platforms, Tesla, and Nvidia
Last year (2023) was all about the magnificent seven and their spectacular returns that boosted US markets and the indices they were part of.
Amazon, Apple, Alphabet, Microsoft, Meta Platforms, Tesla, and Nvidia.
Even just holding a generic S&P500 ETF would have seen great gains as the seven hold the top spots in the index adding up to just over 27% of the total weighting.
In the Nasdaq they are just over 43% (here the ETF is STXNDQ) while the Sygnia 4th Industrial Revolution ETF has only three in the top ten holdings (Meta, Microsoft and Apple) making up a modest 3.1% of the ETF.
But the real winner here is the 1nvest ETF5IT* ETF which tracks the iShares S&P 500 IT Sector. This ETF takes the IT stocks from the S&P500 and puts them into a single index making it a pure tech okay (remember in the Nasdaq100 tech is actually below 50% with communications another 16%).
In the ETF5IT the magnificent seven weighting is only from Apple, Microsoft and Nvidia as the other four are not included in the top ten. But just those three make up over 56% of the index.
So not magnificent seven, rather the thumping three?
But what I have always liked about this ETF is that it is pure tech and as such has always been my preferred ETF for tech stocks and last year saw it come out tops of the local ETFs with a wild return of over 60% and a annualised five year growth of over 30%.
Simon
ETF blog
At Just One Lap, we are big fans of passive investment using ETFs. In this weekly blog, we discuss ETFs on the local market and the factors you need to consider when choosing an ETF. If you have wondered how one ETF differs from another, this is where you can find out. We explain which index each ETF tracks, what type of portfolio could benefit from holding each ETF, and how the costs will affect your bottom line.
