MAGZ — Roundhill Daily Inverse Magnificent Seven ETF

MAGZ Fund Overview

MAGZ — Roundhill Daily Inverse Magnificent Seven ETF is a US ETF managed by Roundhill ETF Trust, categorised as Inverse / Short. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US ETF
• Manager: Roundhill ETF Trust
• Category: Inverse / Short
• Assets under management: $1.00M
• Ticker: MAGZ
• SEC CIK: 0001976517
• SEC series ID: S000084166
• Share class ID: C000248439

MAGZ Investment Objective and Strategy

Roundhill Daily Inverse Magnificent Seven ETF describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Roundhill ETF Trust.

Investment objective

The Fund seeks daily investment results, before fees and expenses, of the inverse (-1X) of the daily performance of the Magnificent Seven ETF. The Fund does not seek to achieve its stated investment objective for a period of time different than a trading day.

Principal investment strategy

The Fund seeks daily investment results, before fees and expenses, that correspond to the inverse (-1X) of the performance of the Magnificent Seven ETF over a single trading day. The Fund does not seek to achieve its stated investment objective for a period of time different than a trading day. The terms daily, day, and trading day, refer to the period from the close of the markets on one trading day to the close of the markets on the next trading day. The Magnificent Seven ETF is an actively managed ETF that seeks, as its investment objective, the growth of capital. Roundhill Financial Inc. (Roundhill or the Adviser) serves as the investment adviser to Magnificent Seven ETF, as well as serving as investment adviser to the Fund. The Magnificent Seven ETF offers exposure to, in equal weight following each rebalance, the seven stocks commonly referred to as Magnificent Seven.

It is currently anticipated that the Magnificent Seven ETFs holdings will not change over the course of the year. However, in the event that different securities are understood to comprise the Magnificent Seven, the Magnificent Seven ETFs portfolio may change to reflect that understanding. As of February 28, 2024, the Magnificent Seven ETFs portfolio was composed of the following securities: Alphabet Inc., Amazon.com, Inc., Apple Inc., Meta Platforms, Inc., Microsoft Corporation, NVIDIA Corporation and Tesla Inc. At each portfolio rebalance, the Adviser equally weights each security. In seeking to achieve its investment objective, the Fund will invest in derivatives instruments, such as swap agreements and futures contracts, that provide exposure to the returns of the Magnificent Seven ETF.

Such derivative instruments may provide the desired exposure by utilizing one or more of the following as their reference asset: (i) the Magnificent Seven ETF; (2) a basket of the individual securities comprising the Magnificent Seven ETF; or (3) an index of securities that is substantially similar to the holdings of the Magnificent Seven ETF. The Fund will attempt to achieve its investment objective without regard to overall market movement or the increase or decrease of the value of the Magnificent Seven ETF. At the close of the markets each trading day, Roundhill rebalances the Funds portfolio so that its exposure to the Magnificent Seven ETF is consistent with the Funds investment objective. The impact of the Magnificent Seven ETFs movements during the day will affect whether the Funds portfolio needs to be re-positioned.

For example, if the value of the Magnificent Seven ETF has increased on a given day, net assets of the Fund should decrease, meaning that the Funds exposure will need to be decreased. Conversely, if the Magnificent Seven ETF has decreased in value on a given day, net assets of the Fund should increase, meaning the Funds exposure will need to be increased. This re-positioning strategy typically results in high portfolio turnover. On a day-to-day basis, the Fund is expected to hold ETFs and money market funds, deposit accounts with institutions with high quality credit ratings, and/or short-term debt instruments that have terms-to-maturity of less than 397 days and exhibit high quality credit profiles, including U.S. government securities and repurchase agreements. The Fund seeks to remain fully invested at all times, consistent with its stated investment objective, but may not always have precise exposure to the Magnificent Seven ETF (for instance, if the Fund holds derivatives contracts that reference the securities held by the Magnificent Seven ETF or an index of securities that is substantially similar to the holdings of the Magnificent Seven ETF).

While the Funds exposure would be substantially similar to direct exposure to the Magnificent Seven ETF, the basket of securities or index it uses as the reference asset may assign slightly different weights to the stocks comprising the Magnificent Seven ETF. The Fund will concentrate its investments ( i.e. , hold 25% or more of its total assets in the stocks of a particular industry or group of industries) in the industry or group of industries comprising the information technology sector. The Fund is classified as non-diversified under the Investment Company Act of 1940 (the 1940 Act). Because of daily rebalancing and the compounding of each days return over time, the return of the Fund for periods longer than a single day will be the result of each days returns compounded over the period, which will very likely differ from -1X of the return of the Magnificent Seven ETF over the same period.

The Fund will lose money if the Magnificent Seven ETFs performance is flat over time, and as a result of daily rebalancing, the Magnificent Seven ETFs volatility and the effects of compounding, it is even possible that the Fund will lose money over time while the Magnificent Seven ETFs performance decreases over a period longer than a single day.

MAGZ Holdings

Top 2 holdings of Roundhill Daily Inverse Magnificent Seven ETF by percentage of net assets, from the fund's latest SEC N-PORT filing.

View all MAGZ holdings

MAGZ Portfolio Allocation

Asset-class allocation of Roundhill Daily Inverse Magnificent Seven ETF by percentage of net assets, from the latest SEC N-PORT filing.

MAGZ Costs and Fees

MAGZ costs about $95 per $10,000 invested per year in fund expenses.

• Net expense ratio: 0.95%
• Gross expense ratio: 0.95%

MAGZ Cashflows

Over the 12 months to 2024-09, Roundhill Daily Inverse Magnificent Seven ETF had net inflows of $1.16M, from monthly SEC N-PORT filings.

MAGZ Debt Constituents

Largest debt holdings of Roundhill Daily Inverse Magnificent Seven ETF by percentage of net assets, from the latest SEC N-PORT filing.

MAGZ Prospectus and SEC Filings

Official Roundhill Daily Inverse Magnificent Seven ETF filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus supplement (497) — filed 2024-02-28
• Portfolio holdings (N-PORT) — filed 2024-11-22
• Portfolio holdings (N-PORT) — filed 2024-08-29
• Portfolio holdings (N-PORT) — filed 2024-05-24

Related Funds

Other Inverse / Short funds tracked on ABC INVEST:

• Direxion Daily Semiconductor Bear 3X Shares (SOXS)
• Direxion Daily S&P 500 Bear 3X Shares (SPXS)
• Direxion Daily S&P 500 Bear 1X Shares (SPDN)
• Direxion Daily Small Cap Bear 3X Shares (TZA)
• Direxion Daily 20+ Year Treasury Bear 3X Shares (TMV)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.