(MAGX) Roundhill Daily 2X Long - Overview

The Roundhill Daily 2X Long Magnificent Seven ETF (NASDAQ: MAGX) is an actively managed, leveraged equity ETF that aims to grow capital by taking a double-long exposure to the “Magnificent Seven” large-cap U.S. tech stocks. It does this through direct equity positions and derivative contracts such as swaps and futures, and it is classified as a non-diversified fund.

Key quantitative traits (as of the latest filing) include a 2× leverage factor, an expense ratio of roughly 0.75 %, and assets under management of about $150 million. The portfolio is heavily weighted toward the seven mega-cap tech names-Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla-collectively representing over 80 % of the fund’s net assets.

Performance and risk drivers are tightly linked to U.S. macro-economic conditions: (1) the Federal Reserve’s policy stance on interest rates directly affects the valuation of growth-oriented tech stocks; (2) corporate earnings cycles in the semiconductor and cloud-computing sub-sectors provide a near-term catalyst; and (3) consumer discretionary spending trends influence revenue outlooks for Amazon and Tesla. Because the fund employs daily resetting leverage, its returns can diverge significantly from a simple 2× multiple of the underlying index over longer horizons.

Investors should treat MAGX as a short-term tactical vehicle. The combination of high concentration, daily leveraged exposure, and derivative use amplifies both upside potential and downside volatility, making it unsuitable for buy-and-hold strategies or risk-averse portfolios.

For a deeper, data-driven assessment of MAGX’s risk-adjusted return profile, you may find the analytics on ValueRay worth exploring.