Why Would Anyone Buy SCHB Instead of MAGS?
The "Magnificent Seven" have been some of the hottest tech stocks in the world for the past several years. , Apple, Amazon, Meta Platforms, Microsoft, Nvidia and Tesla are household-name companies that are widely known for innovation and constantly being in the news.
Although the "Magnificent Seven" stocks have driven a large share of stock market growth in the past few years, they might be losing their luster. An exchange-traded fund (ETF) that tracks the Magnificent Seven, the Roundhill Magnificent Seven ETF (NYSEMKT: MAGS), has underperformed the S 500 index year to date. The past few years' high returns from the Magnificent Seven might look tempting, but there's no guarantee those seven stocks will keep beating the market in the long run.
Instead of buying the Magnificent Seven ETF, many long-term investors might be better off buying a diversified stock market index fund like the Schwab U.S. Broad Market ETF (NYSEMKT: SCHB). This low-cost index fund tracks the Dow Jones U.S. Broad Stock Market Index, and it's up 8.4% year to date, which is also outperforming the Magnificent Seven ETF (which is up 5.9%).
Source Fool.com
Alphabet Inc. A Stock
With 165 Buy predictions and 2 Sell predictions Alphabet Inc. A is one of the favorites of our community.
With a target price of 333 € there is a slightly positive potential of 11.97% for Alphabet Inc. A compared to the current price of 297.4 €.
