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This ETF Is 3 Times BETTER Than S&P500?!🚀

This ETF Is 3 Times BETTER Than S&P500?!🚀
Ready to unlock the market's secret sauce? 🤫
2023 saw 7 stocks soar past expectations, rocketing a mind-blowing 107% return—outearning nations! From "FAANG" to the Magnificent 7: $Apple(AAPL.US)$ , $Microsoft(MSFT.US)$ , Alphabet ( $Alphabet-C(GOOG.US)$ $Alphabet-A(GOOGL.US)$ ), $Amazon(AMZN.US)$ , $NVIDIA(NVDA.US)$ , $Meta Platforms(META.US)$ and $Tesla(TSLA.US)$ . Hunting for an ETF that mirrors these titans' sparkle? Buckle up, let's ride! 🚀💸
This ETF Is 3 Times BETTER Than S&P500?!🚀
Let's dive into the $Roundhill Magnificent Seven ETF(MAGS.US)$ , the talk of the town focusing on those magnificent Seven giants! Since no index available tracks, this ETF demands active management – meaning a heftier 0.29% fee. Makes sense, our fund managers earn their keep, right? 😅 unlike passively managed S&P 500 funds, you can close one eye and choose either $SPDR S&P 500 ETF(SPY.US)$ , $Vanguard S&P 500 ETF(VOO.US)$ , $iShares Core S&P 500 ETF(IVV.US)$ , or equivalent. In this case, picking the right manager here is key! 🧐

Fresh off the bull run, MAGS ETF, born on 4/11/23, boasts a stunning 1-year return of 63.48%! 💰 That's a leap ahead of $S&P 500 Index(.SPX.US)$ (28.4%) & $NASDAQ 100 Index(.NDX.US)$ (42.16%). Sure, past performance isn't everything, but it's a tasty teaser. Equal slices of the Seven, plus a mix of stocks & total return swaps for capital efficiency – fancy finance talk for big gains, bigger risks (counterparty, default, rates). Personally? I dig physical holdings, but synthetic has its charm in this case. 🤓

Not sold on MAGS? No sweat! Two more ETFs on the radar.👀

$Vanguard Mega Cap Growth ETF(MGK.US)$ and $Schwab Strategic Tr Us Large-Cap Growth Etf(SCHG.US)$ – Familiar names = instant comfort, plus they've stood strong for over 15 years. Solid as a rock, indeed! 🗿
MGK keeps it tight with a 57% focus on just 7 stocks within 79 holdings, while SCHG spreads the love across ~250 cos., yet still manages a 51% Mag 7 weighting. Impressive balance! Both ETFs weigh in at a beefy $20B, give or take, with SCHG edging ahead slightly. 💰
Now, let's get down to brass tacks: fees and returns. SCHG knocks it out with a 1-year return of 43%, 3-year at 13%, and 5-year annualized at 19%. MGK gave a good fight, showed a similar trend, but SCHG dominated across the board. Past isn't always prologue, sure, but with fees as low as 0.04% (versus MGK's still-competitive 0.07%), SCHG shines bright. ✨
Oh, and a quick nod to $Vanguard Growth ETF(VUG.US)$ and $Spdr Series Trust Spdr Portfolio S&P 500 Growth Etf(SPYG.US)$ – they're in the same league, but SCHG edges them out, so they didn't make the cut for this chat.

Wrapping up with a classic, it's time for the benchmark ETF— $Invesco NASDAQ 100 ETF(QQQM.US)$ by Invesco! Many of you tech enthusiasts probably know $Invesco QQQ Trust(QQQ.US)$ ; well, think of QQQM as its cooler, more affordable sibling from the same stable. Perfect for those in it for the long haul with a lower expense ratio. 🏃‍♂️
Delving deeper, QQQM encompasses roughly 103 firms, with the Magnificent 7 commanding nearly 40% of its portfolio. While not a pure "Magnificent Seven" play, this weighting significantly surpasses that of VOO or the S&P 500, which allocate less than 30% to these giants. All told, QQQM impresses with its returns, notably a stellar one-year yield of around 42%, coupled with a moderate expense ratio of 0.15%. It strikes a balance—not the costliest, nor the thriftiest option, yet sitting comfortably in the Goldilocks zone of affordability. Right in the sweet spot, if you ask me! 🎯💸
This ETF Is 3 Times BETTER Than S&P500?!🚀
Alright, wrapping up our ETF face-off, let's recap and strategize. If the Magnificent 7 piques your interest and individual stock picks aren't your jam, MAGS ETF fits the bill nicely. But, there's a catch: those underlying assets are synthetic and are simply too new to the market might give some investors pause. 🤔
So buying the large cap ETFs does seem to be a great alternative to QQQM, because one: you have more exposure on the Mac 7, and two: they have a lower expense ratio, which equals to potential higher net return over the long run. And out of these two large cap ETFs, if it's not obvious already, SCHG ETF has displayed a stronger number overall.
Yet, amidst the allure of these tech titans, a word of caution: Their valuations are plush, they've seen substantial recent growth, and the US tech sector's notorious volatility paired with rising interest rates could all conspire to make future returns a bit bumpier than the smooth sailing of late. Keep a weather eye on valuations, market swings, and the macroeconomic climate—they're key players in the ROI game. So, weigh your options wisely and navigate the ETF waters with a clear head and a keen sense of the horizon. 🌊💰

💪 Lol, that's all I have for now. Hope you like it short and sweet.
💬 Do hit the like and comment down below if you found it helpful.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
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