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Can Dividend Kings Outperform the Magnificent 7 ETF?

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  • (1:00) - How Long Will The Magnificent 7 Stay On Top?
  • (5:10) - Breaking Down The Earnings Reports For The Magnificent 7
  • (8:00) - Roundhill Magnificent Seven ETF: MAGS
  • (13:25) - Will Dividend Investing Make A Comeback In 2024?
  • (16:00) - Roundhill S&P Dividend Monarchs ETF: KNGS
  • (22:30) - Bitcoin Covered Call Strategy ETF: YBTC


In this episode of ETF Spotlight, I speak with Dave Mazza, Chief Strategy Officer at Roundhill Investments, about the potential of investing in high-growth "Magnificent 7" stocks compared to dividend-paying stocks with reliable income streams.

The "Magnificent Seven" stocks led the market rally last year, with Apple (AAPL - Free Report) , Microsoft (MSFT - Free Report) , Alphabet (GOOGL - Free Report) , Amazon (AMZN - Free Report) , NVIDIA (NVDA - Free Report) , Meta Platforms (META - Free Report) and Tesla (TSLA - Free Report) responsible for more than 62% of the S&P 500’s total return in 2023.

Nvidia and Meta are leading the group this year, while Tesla significantly lags in performance. All eyes are now on Nvidia's earnings this week. Can the "Mag 7" remain magnificent in 2024?

The Roundhill Magnificent Seven ETF (MAGS - Free Report) , which provides equal weight exposure to these stocks, has attracted significant interest from investors.

The combination of ultra-low interest rates and the surge of high-growth tech giants has diminished the appeal of dividend-paying stocks. Since the financial crisis—and particularly since the pandemic—dividend strategies have significantly underperformed compared to stocks that do not pay dividends, per WSJ.

Dividend-focused ETFs experienced record low inflows last year as investors flocked to surging tech stocks. However, over the longer term, dividend growers have performed quite well.

The Roundhill S&P Dividend Monarchs ETF (KNGS - Free Report) holds companies that have consecutively increased their dividends for at least 50 years. These companies boast mature business models with consistent profitability and financial resilience.

The fund has a higher exposure to "old economy" sectors, which are quite attractively valued compared to technology. Should investors consider combining the growth potential of the Mag 7 stocks with the income stability of dividend growers?

Tune in to the podcast to learn more.

Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email


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