Roundhill’s Magnificent Seven Plus ETF started trading Thursday on Cboe BZX under the symbol MAGP. It adds Broadcom and SpaceX to the seven companies tracked by Roundhill’s older Magnificent Seven fund. It also ties part of its returns to two private AI companies, OpenAI and Anthropic, through derivatives whose prices can move independently of the companies’ private shares.
The distinction is in the fund’s Nov. 10 prospectus. MAGP invests in publicly traded companies and uses separate swap contracts for its pre-IPO exposure. Anyone looking up the fund’s holdings should read the percentage next to each private company as a measure of exposure through those contracts.
The companies in the fund
The Magnificent Seven are Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla. MAGP adds Broadcom and SpaceX to that group. SpaceX began trading publicly in June, so the prospectus groups it with the public stocks. In Roundhill’s Nov. 11 snapshot, SpaceX accounted for 9.55% of the fund’s reported exposure and Broadcom accounted for 9.63%. The sponsor calculates those percentages using both stock positions and any applicable swaps.
OpenAI accounted for 6.72% and Anthropic for 6.66% in that snapshot. Together they made up 13.38% of the reported exposure. The prospectus caps the combined exposure to companies in that pre-IPO group at 15% of net assets while the approach is in effect. At quarterly rebalancing, Roundhill aims for roughly equal weights within the private-company group and within the group of nine public companies. Weights can move between rebalances.
How the OpenAI and Anthropic swaps work
Roundhill uses two indexes from BITA, one for each private company. Those indexes draw on prices from perpetual futures contracts that reference the companies across eligible trading platforms. A perpetual futures contract has no fixed expiration date. Its price can move with traders’ expectations and with trading conditions on those platforms.
MAGP then uses swaps with financial institutions to receive or pay the change in value tied to the indexes, subject to the terms and costs of the contracts. The swaps give the fund a financial interest in changes to the indexes. Private shares and voting rights stay with their owners. The prospectus also says a counterparty could fail to make a payment. Even if a private financing round values one company at a particular figure, the futures-based index and the fund’s swap may reflect a different price.
The prospectus says that after a private company lists publicly, the fund plans to switch to its public shares or swaps tied to those shares once the fund is eligible to do so. Roundhill also plans to rebalance following that change. Anthropic’s proposed offering is one upcoming test of that provision. The fund’s ability to switch depends on an actual public listing and eligibility.
Fees and the comparison with MAGS
MAGP lists a 0.35% annual operating expense ratio. On $10,000 that stays at the same value for a year, 0.35% works out to $35. The prospectus illustrates $36 in the first year under its example, which assumes a 5% annual return. It excludes trading costs and the costs built into the swaps, which can reduce the returns investors receive.
Roundhill lists its older MAGS fund at 0.30%. Its focus is the original seven companies. The difference in listed expenses is $5 a year per $10,000 at a constant account value, before costs outside either headline ratio. MAGP adds two public companies and uses futures-linked swaps for the two private names. Both funds concentrate on a small group of companies, and market prices can move above or below the fund’s net asset value per share. The MAGP fund page publishes its holdings and premium or discount information as those figures become available.
