Roundhill Daily Inverse Magnificent Seven ETF

Frequently Asked Questions About MAGQ

What does MAGQ invest in?

The “Magnificent Seven” are the largest companies in one or more of the following industries: Automotive Industry, Technology Hardware Industry, E-Commerce Discretionary Industry, Internet Media & Services Industry, Semiconductors Industry, and Software Industry. In seeking to achieve its investment objective, the fund will invest at least 80% of its net assets in investments that provide exposure to the Magnificent Seven ETF. The fund is non-diversified.

What is the expense ratio of MAGQ?

Roundhill Daily Inverse Magnificent Seven ETF (MAGQ) charges an expense ratio of 0.95%. This is the annual fee deducted from fund assets to cover management and operations.

Is MAGQ a good long-term hold?

MAGQ is a inverse fund designed to deliver a daily multiple of its underlying index. Daily reset compounding means returns over multi-day periods can diverge significantly from the headline multiple — typically negative drift in choppy markets. These funds are designed for short-term tactical use, not buy-and-hold. Review the fund's prospectus before holding more than a few days.

How does MAGQ's daily reset work?

MAGQ rebalances exposure each trading day to maintain its target leverage ratio against the next day's move. The daily reset means returns compound at the daily level — so a +1%, −1% sequence on the underlying doesn't return the underlying to flat after the leverage multiplier. Over time this path-dependence erodes returns in volatile markets and amplifies them in trending markets.

How big is MAGQ?

Roundhill Daily Inverse Magnificent Seven ETF (MAGQ) manages $902,800 in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is MAGQ actively managed or an index fund?

MAGQ's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.