Want to Avoid the "Magnificent Seven" and Generate Passive Income? This Vanguard ETF May Be for You

The “Magnificent Seven” stocks—Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta Platforms, and Tesla—experienced significant gains in 2023 and 2024 but are now underperforming the S&P 500 in 2025, with Microsoft down 8.1% and Tesla over 35%. Investors seeking alternatives might consider the Vanguard High Dividend Yield ETF, which offers exposure to industry-leading companies across non-tech sectors, achieving a 2.9% dividend yield and a balanced sector allocation. This ETF, with a low expense ratio of 0.06%, is suitable for risk-averse or income-focused investors looking to diversify away from the Magnificent Seven.