Seven large “mega-cap” stocks drove the bull market returns of 2023 and 2024. Due to their market values, these stocks—Apple, Microsoft, Nvidia, Alphabet, Amazon, Meta Platforms, and Tesla—drive the returns of the S&P 500 and QQQ indexes. They are also widely owned by individual investors.

The Roundhill Magnificent Seven ETF (MAGS) launched in April 2023. It gives us a picture of the Mag 7 returns through the bull market, and so far in the more troubled 2025. From inception through the recent peak in December 2024, the ETF gained 137%. That’s a huge number for just 18 months.

Year to date, MAGS is down 12.3%. For comparison, the SPDR S&P 500 ETF (SPY) is off just 3.6%. However, I don’t think the Mag 7 stocks are out of it for good. These are the largest and, more importantly, most innovative companies globally. At some point, I expect these stocks to take the lead for the next stock market bull market.

To make waiting a lot more pleasant, Roundhill just (4/23/25) launched the Roundhill Magnificent Seven Covered Call ETF (MAGY).

MAGY employs a weekly covered call strategy with MAGS as the underlying asset. Dividends will be paid weekly. Sold call options will have out-of-the-money strike prices, allowing the ETF share price to participate in some or all of any gains MAGS generates each week.

As I write this, MAGY has not paid its first weekly dividend; that is scheduled for May 12. From my experience with the Roundhill ETFs, I expect a 20% to 25% yield.

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