XMAG Is Outperforming the S&P 500 in 2026 as the Magnificent Seven Stall

The Roundhill Magnificent Seven ETF, which tracks seven mega-cap stocks through equal weighting, has underperformed the broader market during the current year. MAGS returned 4.82% year-to-date through August 7, lagging behind the S&P 500’s 13.39% return and significantly trailing the Defiance Large Cap ex-Mag 7 ETF, which posted a 15.95% year-to-date gain.
The performance drag on MAGS stems primarily from Tesla, which declined 26.94% year-to-date. Because the fund weights each of its