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Over the past several years, a small group of companies has driven a disproportionate share of U.S. equity returns. Most investors own these companies, but largely as a byproduct of holding a broad market-cap-weighted basket rather than as a deliberate allocation. We believe this leadership reflects structural advantages in scale, profitability, and investment capacity rather than a passing cycle. We also believe the popular “Magnificent 7” label obscures a meaningful difference within the group, as one of its members, Tesla, runs a business that looks quite different from the other six. To address this, we are introducing the Global X Magnificent Six ETF (SIX), an actively managed ETF that seeks capital appreciation through exposure to six of the market’s leading platform companies: currently Apple, Microsoft, NVIDIA, Alphabet, Amazon, and Meta.

Market leadership has become increasingly concentrated in a handful of companies whose scale, profitability, and investment in AI infrastructure suggest that this leadership may be more structural than cyclical.

While the “Magnificent 7” is a popular grouping, Tesla’s business as a vehicle and energy manufacturer diverges from the platform models of the other six, which we believe makes the remaining group a more cohesive exposure to platform and AI leadership.

The Global X Magnificent Six ETF (SIX) may serve as a flexible portfolio tool, either to increase exposure to the market’s largest technology platforms around a core allocation or to add a growth and size tilt that spans multiple sectors.

Market leadership tends to rotate over time, but the past several years have been defined by an unusually narrow group of companies. Since the start of 2021, the Magnificent 7 have contributed 49 percentage points of the Bloomberg 500 Index’s 117% cumulative return.1 In other words, seven of the index’s roughly 500 constituents accounted for well over a third of its gain. Within that group, however, the contribution was far from even. Tesla accounted for just 0.6 of those points, which means the other six companies did nearly all of the work.

This matters because most investors already own these companies, but rarely by design. In a market-cap-weighted allocation, exposure to the largest companies is a byproduct of their size rather than a view on their prospects. When a small group drives a large share of returns, how much exposure an investor holds to that group, and why, becomes a portfolio construction decision in its own right.

We believe the drivers behind this leadership look more durable than a typical market cycle. Magnificent 6 companies are among the largest investors in the infrastructure behind artificial intelligence, and their capital expenditures are expected to keep rising over the coming years. That spending may reinforce their existing advantages, since the companies building the infrastructure are often the same companies best positioned to monetize it through cloud services, advertising, and consumer platforms.

The “Magnificent 7” has become a convenient shorthand for mega-cap U.S. leadership, and Tesla has earned its place in the group through its size and the attention it commands from investors. However, a shared label does not imply a shared business model. Tesla operates a capital-intensive manufacturing business built around vehicles and energy products, which contributes to higher leverage, as measured by debt to EBITDA, and lower operating margins than the other six companies.2 The other six, in contrast, tend to operate asset-light technology platforms whose economics scale differently.

The difference is most visible in free cash flow. Over the last 12 months, Tesla generated approximately $5.8 billion in free cash flow. In comparison, five of the other six companies generated between $41 billion and $137 billion. Only Amazon ranked lower, at negative $11.6 billion, but that reflects the scale of its investment rather than weak cash generation, as its operating cash flow was $161 billion, compared with $18.7 billion for Tesla.3 By contrast, Tesla’s business already requires ongoing reinvestment in its manufacturing base, which leaves less room to fund new initiatives from internal cash. This distinction may rise in importance as the market scrutinizes credit and equity financing for the AI buildout.

Tesla also tends to move less in step with the rest of the group. Over the last five years, its average pairwise correlation with the other six companies was 0.42, compared with a range of 0.48 to 0.54 for each of the other six against its peers.4 Correlations across the group are only moderate overall, but the gap points to a somewhat different set of drivers behind Tesla’s returns. Taken together, the differences in business model, cash generation, and return behavior suggest that the remaining six form a more cohesive group of asset-light platforms that are largely funding the AI buildout from their own cash flows.

The Global X Magnificent Six ETF (SIX) is an actively managed ETF that seeks capital appreciation by gaining economic exposure to the Magnificent Six, which are currently Apple, Microsoft, NVIDIA, Alphabet, Amazon, and Meta. By focusing on these six companies, SIX aims to provide exposure to the group that has driven much of the market’s recent return, rather than the diluted exposure that comes with holding hundreds of other stocks alongside them.

Although SIX is focused on only six companies, its exposure is broader than that number suggests. Together, these companies span consumer technology, software, search, e-commerce, social media, and semiconductors, and they sit at the center of several investment themes, including cloud computing, digital advertising, and artificial intelligence. We believe each holds a leading position in its area of the U.S. economy. As a result, SIX can offer exposure to multiple sources of potential growth through a concentrated set of companies that spans several sectors rather than one.

That combination may make SIX a flexible portfolio tool. For investors who want more exposure to the companies building and monetizing AI at scale without leaving a core allocation, SIX can be used to dial up the weight of companies a broad core portfolio already holds. For investors who pair a broad core with thematic satellites, it may serve as a bridge between the two, adding a growth and size tilt that spans multiple sectors rather than a single sector bet.

The case for a dedicated tool is reinforced by how much exposure investors already have. As shown in the figure below, the combined weight of these six companies in the Bloomberg 500 Index has risen over time. Most U.S. large cap investors are therefore already making a meaningful bet on these names, just a comparatively diluted one, and often without having made it deliberately. SIX seeks to offer a more precise way to access these market leaders in a single trade, allowing investors to size the exposure intentionally rather than accept whatever weight the broad market assigns.

As market leadership has concentrated in a small group of companies, the question for investors has shifted from whether they own these names to how intentionally they own them. We believe the leadership of these six companies rests on structural advantages in scale, profitability, and the capacity to fund AI investment from their own cash flows, and that Tesla’s distinct business model makes the remaining six a more cohesive group. By focusing on these companies in a single, actively managed ETF, the Global X Magnificent Six ETF seeks to provide investors with a flexible tool to size their exposure to mega-cap platform and AI leadership deliberately rather than incidentally.

Click the fund name above to view holdings. Holdings are subject to change. Current and future holdings are subject to risk.

Bloomberg. Data from 12/31/2020 to 9/30/2026.

Bloomberg. Data accessed on 10/13/2026 with figures derived from the most recent quarterly filing for each company.

Bloomberg. Data from 9/30/2021 to 9/30/2026.

The Global X MLCC & Electronic Components ETF (MLCC) seeks to deliver exposure to companies supplying MLCCs and passive electronic components.

The Global X LLM ETF (LLMA) seeks to deliver exposure to companies involved in the development and commercialization of LLMs in developed markets and China.

We’re launching the Global X Asia Semiconductor ETF to offer investors exposure to leading semiconductor companies across ten Asian markets.