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S&P 500 gains 1.7% this year while the Magnificent Seven drop 4.9%; ex‑Mag stocks are up 2.9% and deliver only 7% of the index’s YTD rise.
The S&P 500 is up about 1.7% year‑to‑date, but that modest gain masks a 4.9% decline in the “Magnificent Seven” tech stocks and a 2.9% rise in the remaining 493 constituents [1].
| At a glance | |
|---|---|
| S&P 500 YTD | +1.7% |
| Magnificent Seven YTD | –4.9% (Roundhill ETF) |
| Ex‑Magnificent 493 YTD | +2.9% (Defiance ETF) |
| Ex‑Mag contribution to index | +7% vs. +16.3% overall |
The seven AI‑driven giants—Meta, Alphabet, Tesla, Nvidia, Apple, Amazon and Microsoft—have slipped from a 33% weighting in the index at the start of 2025 to a lower, yet still dominant, share, while the rest of the market has begun to carry more of the rally [2]. Edward Yardeni, who coined “Impressive 493,” notes a clear shift from the concentrated tech rally to broader sector strength, with energy up 23.2%, materials 17.7%, consumer staples 15.5% and industrials 14% YTD [1]. The broader market’s modest 1.7% gain therefore reflects a rotation rather than a uniform advance.
Without the Magnificent Seven, the S&P 500’s YTD return would be roughly 7%, half of the 16.28% total gain reported for the index [3]. The seven stocks alone contributed about 9.42% of the index’s rise, underscoring how much of the market’s performance is tied to a handful of names [3]. Meanwhile, 45% of the index’s constituents (225 stocks) are in the red, and the Nasdaq Composite is essentially flat, highlighting the lack of breadth in the rally [1][3]. The divergence between the headline index and its underlying drivers has prompted concerns that the market’s health is being overstated.
Energy, basic materials, consumer staples and industrials have all posted double‑digit gains, buoyed by a brighter outlook for housing and a resurgence in residential construction [1]. By contrast, the information‑technology sector is down about 2.5% YTD, and the Nasdaq Composite remains near‑flat, reflecting the slowdown in AI‑related spending and the mixed earnings results from the Magnificent Seven [1][3].
The market’s modest rise now hinges on the “Impressive 493” delivering broader growth, while the future path of the AI‑heavy mega‑caps remains a key uncertainty for the S&P 500’s upside.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 3 outlets · Jun 18, 2026 · How we report
By mid‑2024 the seven stocks represented nearly 35% of the index’s total market capitalization.
The Magnificent 7’s market cap grew about 800% over the past decade, while the broader S&P 500 grew about 150%.
The fund has a 0.49% expense ratio and assets under management of ₹4,580 cr.
It delivered an annualised return of 17.93% over the past five years as of 18‑Jun‑2026.
The XMAG ETF tracks an index that excludes the seven technology giants.