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.
