While technology and growth areas have shined in 2026, their gains have not been driven by the market’s largest companies.
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Imagine you had a crystal ball at the end of last year; it says that the market is up the following amounts through mid-June.
Looking at those numbers, how much would you assume the Magnificent 7 stocks are up? 50%? 25%? Maybe 15%? Shockingly, the Roundhill Magnificent Seven ETF (MAGS) is down more than 2% YTD, standing in stark contrast to other technology and growth areas. MAGS is now essentially flat over the last nine months, and it recently reversed into a column of Os, leaving it without support until the $56 level. Additionally, it lost its near-term market relative strength this month, reversing into a column of Os on its RS chart against SPXEWI. Overall, MAGS holds a mediocre fund score of 3.75, which is 0.61 points lower than the average US Large Cap Growth fund. While technology and growth areas have shined in 2026, their gains have not been driven by the market’s largest companies.
The underperformance of the Magnificent 7 names has been especially notable in the context of technology’s rally. Over the last six months, the Nasdaq-100 (NDX) has gained 20.4%, putting it on par with some of its best periods ever. However, MAGS has lost 1.2% over that same period, effectively moving sideways while the broader technology complex surged higher.
While the MAGS ETF has only existed for three years, its historical performance can be approximated using an equally weighted portfolio of the seven stocks, rebalanced quarterly. Currently, the Magnificent 7 portfolio is trailing the Nasdaq-100 by 20% over the last six months, marking the worst period ever seen for the group. The only other periods in which the Magnificent 7 underperformed at all over a six-month span came in 2015, 2019, 2022, and mid-2025.
While there may be an ongoing rotation away from those seven names, each stock presents a unique picture. Meta and Microsoft remain the weakest of the bunch, holding TA scores of 0 and 1, respectively. Those two names, in addition to Tesla, are each down at least double digits over the last six months, serving as the group’s laggards. That said, Tesla has rebounded off its lows, rising to a 4 for 5’er. Nvidia is the lone hold of the group, as the stock’s lack of strength versus its semiconductor peers keeps it at a 3 for 5’er. Alphabet (GOOG/GOOGL), Apple (AAPL), and Amazon (AMZN) remain the cream of the crop, each holding a TA score of 4 or higher while gaining at least 5% over the last six months.
While not every Magnificent 7 name remains a source of strength, market leadership has continued to broaden, making equities less reliant on their gains—and that's a healthy development. In contrast to MAGS' 2% YTD decline, the Defiance Large Cap ex-Mag 7 ETF (XMAG), which excludes those companies from the S&P 500, is up an impressive 12.6%, highlighting the strength emerging outside the mega-cap titans. While the Magnificent 7 may still be the market's most important stocks, this bull market isn't as dependent on their performance as it once was.
