--- title: "Magnificent 7 Lose Their Grip As 493 S&P 500 Stocks Lead In 2026" type: "News" locale: "en" url: "https://longbridge.com/en/news/276352817.md" description: "The Roundhill Magnificent Seven ETF (MAGS) has seen a decline of 5.60% year-to-date in 2026, while the Defiance Large Cap ex-Mag 7 ETF (XMAG) has gained 3.23%, highlighting a significant shift in market dynamics. Currently, 493 of the 500 S&P 500 stocks are outperforming MAGS, indicating a broader market strength. This trend aligns with Ed Yardeni's \"Great Valuation Rotation\" thesis, suggesting a global rebalancing that may continue into 2026." datetime: "2026-02-19T15:28:45.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/276352817.md) - [en](https://longbridge.com/en/news/276352817.md) - [zh-HK](https://longbridge.com/zh-HK/news/276352817.md) --- # Magnificent 7 Lose Their Grip As 493 S&P 500 Stocks Lead In 2026 The structural trend that dominated Wall Street for the better part of three years is showing signs of a significant regime shift. The **Roundhill Magnificent Seven ETF** (NASDAQ:MAGS), which provides concentrated exposure to the tech giants driving the artificial intelligence revolution, has seen its momentum stall in early 2026. In comparison, the broader market begins to outperform. 493 of the 500 stocks in the S&P 500 are outperforming the Magnificent Seven so far in 2026. Two exchange-traded funds are capturing this divergence in real time. ## Scorecard So Far As of Thursday, the **Roundhill Magnificent Seven ETF** (NYSE:MAGS) is down 5.60% year-to-date, while **Defiance Large Cap ex-Mag 7 ETF** (NASDAQ:XMAG) — the ETF offering S&P 500 exposure with the Magnificent Seven removed — is up 3.23% over the same period. That’s a nearly 9-percentage-point gap. MAGS, which holds equal-weight positions in **NVIDIA Corp.** (NASDAQ:NVDA), **Meta Platforms Inc.** (NASDAQ:META), **Apple Inc.** (NASDAQ:AAPL), **Alphabet Inc.** (NASDAQ:GOOG) (NASDAQ:GOOGL), **Tesla Inc.** (NASDAQ:TSLA), **Amazon.com Inc.** (NASDAQ:AMZN) and **Microsoft Corp.** (NASDAQ:MSFT), carries $3.50 billion in assets under management. ## What Is XMAG And Why Does it Exist? XMAG, listed on NASDAQ and launched on Oct. 21, 2024, tracks the BITA US 500 ex Magnificent 7 Index .It is a benchmark that includes the 500 largest U.S. publicly traded securities while explicitly excluding the seven mega-cap tech names. The index uses free-float market capitalization weighting and rebalances quarterly. As of Thursday, the fund holds 493 stocks and carries net assets of $137.79 million. ## ‘Great Valuation Rotation’ Thesis The divergence between XMAG and MAGS tracks closely with what veteran investor **Ed Yardeni** of **Yardeni Research** is calling the “Great Valuation Rotation of the Roaring 2020s.” In a note to clients this week, Yardeni said the global rebalancing trade that began late last year is likely to extend well into 2026. _Photo Courtesy: JOURNEY STUDIO7 on Shutterstock.com_ ### Related Stocks - [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md) - [VOO.US](https://longbridge.com/en/quote/VOO.US.md) - [RSP.US](https://longbridge.com/en/quote/RSP.US.md) - [MAGS.US](https://longbridge.com/en/quote/MAGS.US.md) - [XMAG.US](https://longbridge.com/en/quote/XMAG.US.md) - [IVV.US](https://longbridge.com/en/quote/IVV.US.md) - [SPLV.US](https://longbridge.com/en/quote/SPLV.US.md) - [SPY.US](https://longbridge.com/en/quote/SPY.US.md) ## Related News & Research - [BofA sees Q1 2026 earnings as strongest in five years](https://longbridge.com/en/news/287792068.md) - [Goldman Sachs lifts S&P 500 target to 8,000 on earnings strength](https://longbridge.com/en/news/287893383.md) - [If the Market Rally Stalls, This ETF Can Insulate Portfolios](https://longbridge.com/en/news/287936424.md) - [ETF picks and tax reform debate reshape income strategies](https://longbridge.com/en/news/287949142.md) - [Inflation escalates to 3-year high. And it might get worse before it gets better.](https://longbridge.com/en/news/287919827.md)