September brings the biggest monthly inflow on record for Mag 7 ETFs

Magnificent Seven stocks have reclaimed the lead. Over the past trading month, the Roundhill Magnificent Seven ETF (MAGS) advanced 5.8%, against a 1.1% gain for the S&P 500 (SP500), as the tech-focused Nasdaq Composite (COMP:IND) drew fresh buying and pushed the group to new highs.

The fund holds equal exposure to Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), Amazon (AMZN), Alphabet (GOOG)(GOOGL), Meta Platforms (META), and Tesla (TSLA). That seven-name basket is what investors have been adding to. Magnificent Seven exchange traded funds recorded their largest monthly inflow on record in September, with MAGS taking in roughly $1B, according to flow data charted by Koyfin. Cumulative net inflows rose to about $4.25B.

The September print stands out on an uneven tape. Monthly flows through the first half of the year swung between modest inflows and several outflow months, including a sharp midyear redemption, before demand returned. Cumulative flows, flat for stretches of the year, resumed a steep rise into early October.

The pairing of heavy September inflows and relative outperformance points to investors rebuilding exposure to those seven names after rotating away from them. Whether the bid lasts depends on earnings follow-through and the staying power of Nasdaq momentum.

Magnificent Seven Funds: (MAGS), (MAGX), (QQQU), and (QQQD).

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