Individual investors significantly increased their holdings in the Roundhill Magnificent Seven ETF, which includes major technology companies, during the recent downturn in the U.S. stock market. Data from market analysis firm VettaFi showed that the ETF attracted a net inflow of $50 million over the four trading days up to Tuesday, despite declining more than 7% in that period, compared to a 4.6% drop in the S&P 500.
The influx of funds marked a notable reversal following a five-week period in which the $1.68 billion fund experienced a substantial decline of $163 million in assets. Currently, the ETF, which features industry giants like Nvidia and Apple, is down by more than 12% for the year.
Market strategist Todd Sohn from Strategas highlighted, "This is the first decent-sized correction that this cohort has had for some time," emphasizing the appeal of concentrated exposure to these companies via an ETF for investors who remain bullish on the tech sector.
According to data from Vanda Research, retail investors comprised approximately 25% of ETF purchasers in the previous week. Sohn noted, "Investors are still willing to buy an ETF that lumps all seven of these companies together, even as their individual returns are starting to vary more and more."
While Tesla's stock remained steady, Meta Platforms saw a nearly 6% increase in 2025. Retail investors seeking heavier exposure to tech stocks tend to lean towards broader index-linked products like the Invesco QQQ ETF tracking the Nasdaq 100 and the Direxion Daily Semiconductor Bull 3x Shares aiming for triple the return of the NYSE Semiconductor Index.
Vanda highlighted that these ETFs were also favored by retail investors during the recent market turmoil.