Roundhill Investments has introduced a pair of new tactical ETFs focused on leading technology companies in the United States.

Dave Mazza, Chief Strategy Officer at Roundhill Investments.

The Roundhill Daily Inverse Magnificent Seven ETF (MAGQ US) and Roundhill Daily 2X Long Magnificent Seven ETF (MAGX US) have been listed on Nasdaq with expense ratios of 0.95% each.

MAGQ and MAGX offer inverse (-100%) and twice (+200%) the daily return, respectively, of the $160 million Roundhill Magnificent Seven ETF (MAGS US).

MAGS tracks a portfolio of prominent US technology and technology-enabled stocks which together are commonly referred to as the “Magnificent Seven”: Apple, Amazon.com, Alphabet, Meta Platforms, Microsoft, Nvidia, and Tesla. Collectively, the seven companies boast a total market capitalization of $13.1 trillion, surpassing that of Japan, France, and the UK stock markets combined (data as of mid-February 2024).

MAGS rebalances its portfolio to equal weights every quarter, ensuring a balanced representation across the underlying constituents.

Dave Mazza, Chief Strategy Officer at Roundhill Investments, commented: “As the market continues to favor the Magnificent Seven, we are expanding our product suite to meet this demand for active traders. We believe that the Magnificent Seven concept is enduring, and MAGQ/MAGX enable active traders to express their views on these seven market leaders with precision.”

Investors should note that inverse and leveraged ETFs are only suitable for sophisticated traders who understand the risks involved. Specifically, these products tend to decay in value if held for an extended period, potentially leading to significant losses, especially in volatile but range-bound markets.