Magnificent 7
“Magnificent 7” is the collective name for seven US companies that have shaped the equity market of recent years: Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta Platforms and Tesla. The label was coined on trading desks in 2023 and has no index provider behind it — it is a description, not a definition: no inclusion rule, no committee, no review date on which anyone checks the membership.
What the seven share is scale, a home market and a business built on computing, software and platforms. The rest differs: Nvidia sells chips, Alphabet and Meta advertising, Amazon retail and cloud, Apple devices, Microsoft enterprise software, Tesla cars. Treating them as one bet ignores that their prices do come apart under stress — which is exactly what the chart shows once you hide individual lines.
The flip side of their size matters just as much: in a broad index fund these seven names already account for a substantial share of the portfolio. Buying single stocks from the group on top of that doubles a position you already hold.
One detail on Alphabet: two share classes trade, GOOGL (class A, voting) and GOOG (class C, non-voting). This page uses GOOGL, so the index weight in the table covers that class alone — in the index itself Alphabet sits somewhat higher across both.
Together the 7 names carry 31.6 % of the S&P 500 — measured from the holdings of one representative index fund (SPYL). Anyone holding the index holds roughly a third of their equity side in these seven companies, intentionally or not.
Price performance compared
Magnificent 7 is the equal-weighted basket of the seven stocks: the same amount per name on the first shared trading day (2024-07-11), no rebalancing afterwards. Within a shorter window the weights have therefore already drifted — the basket line is not the average of the seven percentages next to it. Deliberately not weighted by market capitalisation — that would need share counts per date from a source we do not maintain. Price changes only, excluding dividends, taxes and costs.
The seven names
| Stock | Ticker | Sector | Weight S&P 500 | Volatility | Max drawdown | ETFs |
|---|---|---|---|---|---|---|
 Microsoft Corporation | MSFT | Information Technology | 5.60 % | 28.3 % | -34.9 % | 25 |
 Apple Inc. | AAPL | Information Technology | 7.35 % | 28.4 % | -33.4 % | 25 |
 NVIDIA Corporation | NVDA | Information Technology | 8.10 % | 47.1 % | -36.9 % | 26 |
 Alphabet Inc. Class A | GOOGL | Communication Services | 2.99 % | 31.5 % | -29.9 % | 24 |
| Amazon.com Inc. | AMZN | Consumer Discretionary | 3.78 % | 34.1 % | -30.9 % | 22 |
 Meta Platforms Inc Class A | META | Communication Services | 2.17 % | 37.8 % | -34.2 % | 22 |
 Tesla Inc. | TSLA | Consumer Discretionary | 1.57 % | 60.4 % | -53.8 % | 22 |
| Magnificent 7 | – | Basket, equal-weighted | 31.6 % | 27.9 % | -31.6 % | – |