Magnificent 7 Earnings Ahead: 3 ETFs To Ride The Wave

As the fourth-quarter earnings season kicks into high gear, all eyes are on the Magnificent 7 – a group of tech giants that have been dominating the market thanks to the ongoing artificial intelligence (AI) boom. These stocks – Apple Inc (AAPL), Microsoft Corp (MSFT), Alphabet Inc (GOOGL), Amazon.com Inc (AMZN), NVIDIA Corp (NVDA), Tesla Inc (TSLA), and Meta Platforms Inc (META) – are expected to report earnings growth of 18% in 2025, marking a slowdown from the previous year. As investors, we can capitalize on this earnings season by considering ETFs that focus heavily on these stocks. Here are three ETFs worth considering:

1. Roundhill Magnificent Seven ETF (MAGS)
MAGS was the first ETF to offer equal-weight exposure to the Magnificent 7 stocks. With an expense ratio of 0.29% and an AUM of $639.75 million, MAGS has grown 61% in the last year. This ETF is an excellent choice for investors seeking diversified exposure to the Magnificent 7 ahead of their earnings results.

2. MicroSectors FANG+ ETN (FNGS)
FNGS tracks the NYSE FANG+ Index and maintains a 10% share in each of the seven stocks. With an expense ratio of 0.58%, FNGS offers a slightly broader yet targeted approach to investing in the Magnificent 7. This ETF is an attractive option for those looking to gain exposure to these tech giants while still maintaining a focus on the core group.

3. Vanguard Mega Cap Growth ETF (MGK)
MGK allocates around 59% of its assets to the Magnificent 7, making it a pocket-friendly option with an expense ratio of just 0.06%. With $21.60 billion in AUM, MGK is a popular choice for investors seeking exposure to large-cap growth stocks, with a significant portion of their portfolio dedicated to the Magnificent 7.

As the earnings season progresses, the Magnificent 7 stocks are expected to report earnings growth of 18% in 2025, marking a slowdown from the previous year. With Tesla, Microsoft, and Meta Platforms kicking off earnings with reports scheduled after market close on Wednesday, and Apple, Alphabet, and Amazon set to announce results on Feb. 1, investors have plenty to look forward to. Nvidia is expected to release its earnings later in February.

In conclusion, the fourth-quarter earnings season is shaping up to be an exciting time for investors, with the Magnificent 7 stocks expected to report strong earnings growth. By considering ETFs like MAGS, FNGS, and MGK, investors can gain diversified exposure to these tech giants and capitalize on their earnings potential. As always, it's essential to do your own research and consider your investment goals and risk tolerance when making investment decisions. Happy investing!