Weakness in Roundhill Magnificent Seven ETF's People and Process Pillar ratings limits this strategy to a Morningstar Medalist Rating of Negative. The portfolio maintains a sizable cost advantage over competitors, priced within the least expensive fee quintile among peers.  

 The strategy's management team is about as experienced as others, but due to other weaknesses, the strategy earns a Low People Pillar. The fund merits a Low Process Pillar rating. The strategy's parent organization doesn't stand out, earning the firm an Average Parent Pillar rating. It has displayed a handful of investor-friendly attributes including overall attractive fees but is held back by an unfavorable lineup success ratio.

Analyst Rating

Alphabet

Amazon

Apple

Microsoft

Tesla

NVIDIA

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. Roundhill Magnificent Seven ETF earns a Low Process Pillar rating. 

The largest detractor from the rating is the parent firm's five-year risk-adjusted success ratio of 0%. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's relatively low success ratio suggests that the firm could do better across its fund lineup. The parent firm's five-year retention rate of 72% also weakens the process. Management team experience, which averages five years at this fund, detracts from the rating as well.

 The investment strategy as stated in the fund's prospectus is as follows:

The investment seeks growth of capital.  The fund is an actively managed exchange-traded fund (“ETF”) that pursues its investment objective by seeking investment exposure to the largest companies (“Underlying Issuers”) in one or more of the following industries, each of which is defined by an independent industry classification scheme: Technology Hardware Industry; E-Commerce Discretionary Industry; Internet Media & Services Industry; and Software Industry (collectively, and the “Technology Industries”). The fund is non-diversified. 

 The portfolio is composed of 16 holdings and is quite concentrated. Specifically, 80.5% of the portfolio's assets are housed within the top 10 holdings, as opposed to the category’s 52.3% average. And finally, in terms of portfolio turnover, looking at year-over-year movements, 81% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Process

Roundhill Magnificent Seven ETF earns a Low People Pillar rating. The most substantial detractor from the rating is the experience of the management team, which averages five years at this fund. The instability of talent across its parent firm also limits the team. The firm's asset-weighted manager tenure of two years suggests it could do more to retain portfolio managers. The parent firm's five-year success ratio of 0% further holds the rating back. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median return for the period. The parent's subpar success ratio suggests that the firm could do better across its fund lineup.


None of the portfolio managers here invest in this fund. This hurts the rating because manager investment would align their interests with the strategy's investors.

People

Roundhill is an industry-standard asset manager, resulting in an Average Parent Pillar rating. An area of strength is the firm’s favorable fees for open-end and exchange-traded funds, demonstrating a firm-wide commitment to minimizing costs and maximizing investors’ returns. Fees for funds are, on average, within the second-lowest quintile of similarly distributed strategies. The firm has not had a durable product lineup. Specifically, its three-year success ratio demonstrates that only 0% of products both survived and beat their respective category median. A low success ratio indicates poor performance and raises questions about a firm’s discipline around investment strategy and product development. With an average five-year Morningstar Rating of 1.0 stars, the risk-adjusted performance of Roundhill's open-end and exchange-traded funds falls short of competitors.

Average

Parent

Roundhill Magnificent Seven ETF

Senstar Technologies Ltd. engages in the manufacture and marketing of computerized security systems. It operates through the following segments: Perimeter Products, Turnkey Projects, and Video & Cyber Security. The Perimeter Products segment sells perimeter products, including services and maintenance that are performed either on a fixed-price basis or pursuant to time-and-materials based contracts. The Turnkey Projects segment includes installation of comprehensive turnkey solutions for which revenues are generated from long term fixed price contracts. The Video & Cyber Security segment sells of integrated intelligent video management solutions for security surveillance and business intelligence applications complemented by cyber-security products for monitoring, securing, and the active management of wired, wireless, and fiber optic communication networks. The company was founded on March 27, 1984 and is headquartered in Ramat Gan, Israel.

MAGS is an actively managed fund that offers highly concentrated exposure to the largest and most liquid leading technology stocks. The fund invests primarily through swaps and forwards.

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MAGS is the first and only U.S. listed ETF to target the "Magnificent Seven" stocks NEW YORK , Feb. 8, 2024 /PRNewswire/ -- Roundhill Investments ("Roundhill"), a leading provider of innovative financial products, is pleased to announce that the Roundhill Magnificent Seven ETF (Nasdaq: MAGS) has surpassed $100 million in assets under management (AUM) less than a year after its launch. Following the fund's name change from the Roundhill BIG Tech ETF to the Roundhill Magnificent Seven ETF, and the inclusion of Tesla and Nvidia, MAGS has seen a meaningful increase in asset growth and trading activity.

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