The Magnificent 2 Of 7 Portfolio

Status Date: 2026-07-01

Current Status: TSLA, NVDA

Rolling 12 month return:

Mag 2 of 7: 31.4%

MAGS ETF: 18.8%

From inception on 2023-05-01:

Mag 2 of 7: 274%

MAGS ETF: 152%

Mag 2 of 7

The Magnificent 2 of 7 portfolio is a momentum play.

In this portfolio, we limit the universe of possible stocks to only the seven "magnificent" ones. It turns out you can do quite well by holding only two of them at a time and only entering/exiting trades at the beginning of the month.

Performance since inception
Rolling 12 month results

The group of stocks now known as the “Magnificent 7” first gained attention back in 2023. Michael Hartnett of Bank Of America started using the term and, like many catchy phrases, Wall Street gladly adopted it. Not long after, someone was going to turn it into an ETF, and the Roundhill Magnificent Seven ETF started trading on April 10th of that year.

Just as a reminder, the “magnificent seven” stocks are:

Here is how our Magnificent 2 of 7 portfolio is managed:

It always holds exactly 2 of the Magnificent 7 stocks, no cash, no shorting.

  1. At the end of each month, we identify which two of the Magnificent 7 stocks performed best that month.
  2. At the next month’s open, we sell the 2 stocks in the portfolio and buy the 2 stocks as determined in step (1).
    1. If the 2 stocks to be bought are the same 2 stocks currently in the portfolio, there is nothing to do. No transactions are made.
    2. If both stocks are being replaced, then the total cash generated is allocated 50/50 to the two entering stocks.
    3. If only 1 of the stocks is being replaced, the entire proceeds from that sale are reinvested in the new stock coming into the portfolio. There is no rebalancing.