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Beyond Mag 7: MANGOS or Big-10 ETFs Will Likely Rule Ahead
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Key Takeaways
AI leadership is widening beyond the Magnificent Seven to new tech stock groups.
MANGOS, FAB 10 and AI Big 10 highlight the next phase of the AI bull market, as quoted on Yahoo Finance.
AIQ, SMH, MARS, LOFF, BAI and TTEQ offer ways to tap the broader AI theme.
After years of "Magnificent Seven" or “Mag -7” – including Apple, Microsoft, Alphabet, Amazon, Meta, NVIDIA and Tesla – dominance, Wall Street has now found the next set of high-potential market winners in the tech space. And Wall Street analysts and traders have also nicknamed them in a smart way.
Per a Yahoo Finance article, traders, strategists and ETF issuers are rolling out new names such as MANGOS, FAB 10 and BofA's AI Big 10 to capture the evolving leaders of the AI-driven bull market.
While the names differ, the idea is familiar. Wall Street just grouped dominant stocks under catchy labels as those companies became too influential to ignore. A grouping can also help ETF issuers to roll out a product under the same label as they have done it for Mag-7 with a product called Roundhill Magnificent Seven ETF (MAGS - Free Report) .
Why the Magnificent Seven Is No Longer Enough
The Magnificent Seven perfectly captured the AI-powered rally when the same seven mega-cap technology stocks were driving most of the market's gains. However, the leadership has broadened over time.
Performance within the group has also diverged significantly. So far this year, Alphabet has added about 16.8% gains, while Meta (down 11.3%) and Microsoft (down 19.8%) have both posted declines this year.
No wonder, MAGS ETF has added only 0.1% this year while the tech-heavy broader Nasdaq-100 ETF (QQQ - Free Report) has jumped about 20.8% in the year-to-date frame. Hence, broadening tech exposure beyond the Magnificent Seven has become the need of the hour.
Meet the New AI Stock Clubs
Several new groupings have emerged to reflect the expanding AI ecosystem. The same Yahoo Finance article mentioned that Vanda Research said in a recent note that "if the last few years were dominated by the Magnificent Seven, SpaceX's IPO was perhaps the clearest sign yet that investors are starting to focus" on the FAB 10.
FAB 10 extends the Magnificent Seven by adding SpaceX, OpenAI and Anthropic, highlighting the growing importance of leading private AI and aerospace companies. Then the article mentioned the emergence of MANGOS, comprising Meta, Anthropic, NVIDIA, Google, OpenAI and SpaceX.
The Yahoo Finance article went on to highlight BofA's AI Big 10 remains focused on publicly traded companies by supplementing the Magnificent Seven with semiconductor leaders Broadcom, AMD and Micron.
AI Trade Keeps Expanding
The AI investment theme has widened beyond a handful of mega-cap technology companies. Investors are increasingly focusing on the broader AI ecosystem, including semiconductor manufacturers, AI infrastructure providers, aerospace leaders such as SpaceX, and private AI companies that are planning to go public.
ETFs in Focus
Big 10 Shows Importance of Holding Chip ETFs
As far as the ETF exposure is concerned, semiconductor stocks and ETFs hog attention as BofA's AI Big 10 group is heavy on chip stocks. VanEck Semiconductor ETF (SMH - Free Report) should thus be closely followed. The fund is up 76.8% so far this year.
MANGOS: All About AI
MANGOS – the cohort of Meta, Anthropic, NVIDIA, Google, OpenAI and SpaceX – is yet to be accessible through ETFs as Anthropic and OpenAI are not listed yet. However, once they hit the market, ETFs with heavy exposure on the duo are most likely to be launched (read: Don't Fear Higher Rates: Play AI ETFs as IPO Race Heats Up).
However, AI ETFs like Global X Artificial Intelligence & Technology ETF (AIQ - Free Report) can be tapped in this regard. Other players are present in the market and are heavy on AI. SpaceX's recent $60B Cursor deal also accelerates its push into AI-powered software tools. The deal shows that the company expands beyond aerospace into AI (read: Space Meets AI: SpaceX's Cursor Deal Puts These ETFs in Focus).
Following FAB-10? Bet on SpaceX ETFs & Anthropic-Open AI Pre-IPO ETFs
FAB 10 is an extension of Mag-7 as the group just adds SpaceX, OpenAI and Anthropic. This shows the strength of the recent tech IPOs in the market. In this regard, ETFs like MARS Space & Technology ETF (MARS - Free Report) and Direxion Daily SpaceX Bull 2X ETF (LOFF) should be closely followed as SpaceX play (read: SpaceX Extends Historic IPO Rally: 3 Leveraged ETFs to Boost Gains).
ETFs that hold pre-IPO shares of both Anthropic and OpenAI include the iShares A.I. Innovation & Tech Active ETF (BAI - Free Report) and the T. Rowe Price Technology ETF (TTEQ - Free Report) . As of now, both ETFs have less than 1% weight in each of the stocks.
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Beyond Mag 7: MANGOS or Big-10 ETFs Will Likely Rule Ahead
Key Takeaways
After years of "Magnificent Seven" or “Mag -7” – including Apple, Microsoft, Alphabet, Amazon, Meta, NVIDIA and Tesla – dominance, Wall Street has now found the next set of high-potential market winners in the tech space. And Wall Street analysts and traders have also nicknamed them in a smart way.
Per a Yahoo Finance article, traders, strategists and ETF issuers are rolling out new names such as MANGOS, FAB 10 and BofA's AI Big 10 to capture the evolving leaders of the AI-driven bull market.
While the names differ, the idea is familiar. Wall Street just grouped dominant stocks under catchy labels as those companies became too influential to ignore. A grouping can also help ETF issuers to roll out a product under the same label as they have done it for Mag-7 with a product called Roundhill Magnificent Seven ETF (MAGS - Free Report) .
Why the Magnificent Seven Is No Longer Enough
The Magnificent Seven perfectly captured the AI-powered rally when the same seven mega-cap technology stocks were driving most of the market's gains. However, the leadership has broadened over time.
Performance within the group has also diverged significantly. So far this year, Alphabet has added about 16.8% gains, while Meta (down 11.3%) and Microsoft (down 19.8%) have both posted declines this year.
No wonder, MAGS ETF has added only 0.1% this year while the tech-heavy broader Nasdaq-100 ETF (QQQ - Free Report) has jumped about 20.8% in the year-to-date frame. Hence, broadening tech exposure beyond the Magnificent Seven has become the need of the hour.
Meet the New AI Stock Clubs
Several new groupings have emerged to reflect the expanding AI ecosystem. The same Yahoo Finance article mentioned that Vanda Research said in a recent note that "if the last few years were dominated by the Magnificent Seven, SpaceX's IPO was perhaps the clearest sign yet that investors are starting to focus" on the FAB 10.
FAB 10 extends the Magnificent Seven by adding SpaceX, OpenAI and Anthropic, highlighting the growing importance of leading private AI and aerospace companies. Then the article mentioned the emergence of MANGOS, comprising Meta, Anthropic, NVIDIA, Google, OpenAI and SpaceX.
The Yahoo Finance article went on to highlight BofA's AI Big 10 remains focused on publicly traded companies by supplementing the Magnificent Seven with semiconductor leaders Broadcom, AMD and Micron.
AI Trade Keeps Expanding
The AI investment theme has widened beyond a handful of mega-cap technology companies. Investors are increasingly focusing on the broader AI ecosystem, including semiconductor manufacturers, AI infrastructure providers, aerospace leaders such as SpaceX, and private AI companies that are planning to go public.
ETFs in Focus
Big 10 Shows Importance of Holding Chip ETFs
As far as the ETF exposure is concerned, semiconductor stocks and ETFs hog attention as BofA's AI Big 10 group is heavy on chip stocks. VanEck Semiconductor ETF (SMH - Free Report) should thus be closely followed. The fund is up 76.8% so far this year.
MANGOS: All About AI
MANGOS – the cohort of Meta, Anthropic, NVIDIA, Google, OpenAI and SpaceX – is yet to be accessible through ETFs as Anthropic and OpenAI are not listed yet. However, once they hit the market, ETFs with heavy exposure on the duo are most likely to be launched (read: Don't Fear Higher Rates: Play AI ETFs as IPO Race Heats Up).
However, AI ETFs like Global X Artificial Intelligence & Technology ETF (AIQ - Free Report) can be tapped in this regard. Other players are present in the market and are heavy on AI. SpaceX's recent $60B Cursor deal also accelerates its push into AI-powered software tools. The deal shows that the company expands beyond aerospace into AI (read: Space Meets AI: SpaceX's Cursor Deal Puts These ETFs in Focus).
Following FAB-10? Bet on SpaceX ETFs & Anthropic-Open AI Pre-IPO ETFs
FAB 10 is an extension of Mag-7 as the group just adds SpaceX, OpenAI and Anthropic. This shows the strength of the recent tech IPOs in the market. In this regard, ETFs like MARS Space & Technology ETF (MARS - Free Report) and Direxion Daily SpaceX Bull 2X ETF (LOFF) should be closely followed as SpaceX play (read: SpaceX Extends Historic IPO Rally: 3 Leveraged ETFs to Boost Gains).
ETFs that hold pre-IPO shares of both Anthropic and OpenAI include the iShares A.I. Innovation & Tech Active ETF (BAI - Free Report) and the T. Rowe Price Technology ETF (TTEQ - Free Report) . As of now, both ETFs have less than 1% weight in each of the stocks.