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IYW vs MAGS
Which ETF would AI Choose? iShares U.S. Technology ETF (IYW) vs. Roundhill Magnificent Seven ETF (MAGS)
Key Takeaways
- IYW is a broadly diversified, passively managed technology-sector fund tracking roughly 150 U.S. tech stocks, while MAGS holds only seven mega-cap names at equal weight.
- MAGS is a high-conviction, momentum-oriented vehicle tied to the "Magnificent Seven," whereas IYW spreads risk across semiconductors, software, and hardware across a wider market-cap spectrum.
- Cost profiles are similar but inverted from expectations: MAGS charges 0.29% versus roughly 0.39% for IYW, though IYW offers far more underlying diversification per dollar.
- Single-name concentration risk is materially higher in MAGS, where any one holding represents about one-seventh of the fund; IYW caps this through a broader, market-cap-weighted structure.
- Both funds are structurally different: IYW is a sector benchmark strategy, while MAGS is a thematic, concentrated expression of mega-cap technology leadership.
- Tickeron AI Verdict: IYW — favored for its superior diversification profile, lower idiosyncratic risk, and comparable sector exposure with greater structural resilience.
Introduction
Investors seeking exposure to the technology boom increasingly face a choice between two very different tools. The iShares U.S. Technology ETF (IYW) offers a broad, index-based sweep across the entire U.S. technology sector, while the Roundhill Magnificent Seven ETF (MAGS) concentrates exclusively on seven dominant mega-cap franchises. They do not compete directly; rather, they represent alternative expressions of a similar investor goal — capturing growth from technology and artificial intelligence (AI) leadership. Comparing their structure, sector exposure, and relative positioning clarifies which fund fits which objective in the current market environment.
iShares U.S. Technology ETF (IYW) Overview
The iShares U.S. Technology ETF (IYW) is a passively managed fund that seeks to track the Russell 1000 Technology RIC 22.5/45 Capped Index, a benchmark measuring the technology sector of the U.S. equity market. With roughly 150 holdings, it provides market-cap-weighted exposure spanning semiconductors, software and services, and technology hardware. Top holdings include NVDA, AAPL, MSFT, AVGO, and GOOGL, with additional weight in META, AMD, and MU. The fund carries an expense ratio of roughly 0.39% and is classified as non-diversified, meaning its largest positions still dominate returns even within a broad roster. Its defining features are breadth, sector purity, and a long operating history dating to 2000.
Roundhill Magnificent Seven ETF (MAGS) Overview
The Roundhill Magnificent Seven ETF (MAGS) is a thematic, passive fund offering equal-weight exposure to the seven stocks known as the "Magnificent Seven": MSFT, AAPL, NVDA, AMZN, GOOGL, META, and TSLA. Each position is rebalanced quarterly back to approximately 14% of net assets, a structure that mechanically trims winners and tops up laggards. The fund, launched in April 2023, charges a 0.29% expense ratio and gains a portion of its exposure through total return swaps rather than direct share ownership alone, introducing a modest counterparty consideration. MAGS is effectively a single-bet, seven-name wager on mega-cap technology leadership, offering no diversification beyond that narrow cohort.
Industry and Thematic Backdrop
Both funds sit squarely within the same macro narrative: the build-out of AI infrastructure, cloud computing, digital advertising, and semiconductor demand. Capital expenditure on data centers and AI accelerators has been a dominant driver of earnings across the sector's largest names, while interest-rate expectations continue to influence the valuation multiples of long-duration growth assets. Regulatory scrutiny of large technology platforms, export controls on advanced chips, and cyclical swings in memory and hardware pricing all represent shared risks. The difference is concentration: IYW captures this theme across the full technology complex, while MAGS isolates the theme's seven most prominent beneficiaries, leaving it more exposed to any single-stock setback or sector rotation.
Performance and Positioning Comparison
Over recent market cycles, both funds have benefited from technology leadership, but their return profiles diverge in meaningful ways. MAGS has tended to amplify gains when mega-cap momentum runs hot, while also experiencing sharper drawdowns during risk-off episodes, given its concentration in seven correlated names. IYW has displayed more balanced relative positioning, participating in the technology advance while cushioning volatility through exposure to a wider range of semiconductor, software, and hardware businesses. In periods of narrow leadership among a handful of mega-caps, MAGS has historically captured more upside; in broader rallies or when leadership rotates toward mid- and smaller-cap technology, IYW's diversification tends to support more consistent fund performance.
AI Screener
Tickeron's AI Screener is an AI-powered stock and ETF (exchange-traded fund) discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. By automating the screening process, the tool helps identify trade ideas, trending stocks, breakout candidates, and market opportunities far more efficiently than manual screening. Explore the AI Screener to apply these signals to your own ETF comparison and positioning decisions.
Tickeron AI Verdict
Weighing structural strength, diversification profile, cost efficiency, trend consistency, and risk exposure, Tickeron's AI would likely favor IYW in the current environment. While MAGS offers marginally lower fees and potentially greater upside during narrow mega-cap rallies, its seven-name concentration and swap-based structure elevate idiosyncratic and counterparty risk. IYW delivers comparable access to the technology growth theme with roughly 150 holdings, reducing the impact of any single-stock failure and supporting more resilient risk-adjusted positioning. This is a probabilistic assessment of relative structure, not individualized investment advice, and reflects a preference for diversification within a sector that remains highly correlated at the top.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is IYW is a Hold and MAGS is a Buy.
IYW's RSI Indicator climbs out of oversold territory
The RSI Oscillator for IYW moved out of oversold territory on November 09, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 23 similar instances when the indicator left oversold territory. In 22 of the 23 cases the stock moved higher. This puts the odds of a move higher at 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +4.41% 3-day Advance, the price is estimated to grow further. Considering data from situations where IYW advanced for three days, in 322 of 371 cases, the price rose further within the following month. The odds of a continued upward trend are 87%.
IYW may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 14, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on IYW as a result. In 71 of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 84%.
The Moving Average Convergence Divergence Histogram (MACD) for IYW turned negative on October 12, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In 36 of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at 72%.
IYW moved below its 50-day moving average on October 29, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for IYW crossed bearishly below the 50-day moving average on October 23, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 14 of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 88%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where IYW declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 84%.
The Aroon Indicator for IYW entered a downward trend on November 10, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
MAGS in upward trend: price expected to rise as it breaks its lower Bollinger Band on November 05, 2026
MAGS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 25 of 25 cases where MAGS's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 25 of 29 cases where MAGS's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 86%.
Following a +3.35% 3-day Advance, the price is estimated to grow further. Considering data from situations where MAGS advanced for three days, in 215 of 241 cases, the price rose further within the following month. The odds of a continued upward trend are 89%.
Bearish Trend Analysis
The 10-day RSI Indicator for MAGS moved out of overbought territory on October 07, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 31 similar instances where the indicator moved out of overbought territory. In 24 of the 31 cases, the stock moved lower in the following days. This puts the odds of a move lower at 77%.
The Momentum Indicator moved below the 0 level on October 16, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on MAGS as a result. In 44 of 54 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 81%.
The Moving Average Convergence Divergence Histogram (MACD) for MAGS turned negative on October 14, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 38 similar instances when the indicator turned negative. In 32 of the 38 cases the stock turned lower in the days that followed. This puts the odds of success at 84%.
MAGS moved below its 50-day moving average on October 29, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for MAGS crossed bearishly below the 50-day moving average on November 02, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 8 of 11 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 73%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MAGS declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 74%.
The Aroon Indicator for MAGS entered a downward trend on November 10, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
| IYW | MAGS | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 90% | 6 days ago 77% |
| Stochastic ODDS (%) | 2 days ago 90% | 2 days ago 86% |
| Momentum ODDS (%) | 2 days ago 84% | 2 days ago 81% |
| MACD ODDS (%) | 2 days ago 72% | 2 days ago 84% |
| TrendWeek ODDS (%) | 2 days ago 83% | 2 days ago 77% |
| TrendMonth ODDS (%) | 2 days ago 88% | 2 days ago 86% |
| Advances ODDS (%) | 3 days ago 87% | 3 days ago 89% |
| Declines ODDS (%) | 10 days ago 84% | 10 days ago 74% |
| BollingerBands ODDS (%) | 2 days ago 90% | 2 days ago 90% |
| Aroon ODDS (%) | 2 days ago 90% | 2 days ago 89% |
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IYW and
Correlation & Price change
A.I.dvisor indicates that over the last year, IYW has been closely correlated with ONTO. These tickers have moved in lockstep 70% of the time. This A.I.-generated data suggests there is a high statistical probability that if IYW jumps, then ONTO could also see price increases.
| Ticker / NAME | Correlation To IYW | 1D Price Change % | ||
|---|---|---|---|---|
| IYW | 100% | -1.37% | ||
| ONTO - IYW | 70% Closely correlated | +1.79% | ||
| Q - IYW | 70% Closely correlated | -1.16% | ||
| MKSI - IYW | 65% Loosely correlated | +0.89% | ||
| INTC - IYW | 64% Loosely correlated | -2.09% | ||
| COHR - IYW | 64% Loosely correlated | -4.68% | ||
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MAGS and
Correlation & Price change
A.I.dvisor tells us that MAGS and MSFT have been poorly correlated (+11% of the time) for the last year. This A.I.-generated data suggests there is low statistical probability that MAGS and MSFT's prices will move in lockstep.
| Ticker / NAME | Correlation To MAGS | 1D Price Change % | ||
|---|---|---|---|---|
| MAGS | 100% | -0.78% | ||
| MSFT - MAGS | 11% Poorly correlated | -2.20% | ||
| META - MAGS | 7% Poorly correlated | +0.00% | ||
| GOOGL - MAGS | 7% Poorly correlated | -0.27% | ||
| AAPL - MAGS | 6% Poorly correlated | -0.62% | ||
| AMZN - MAGS | 6% Poorly correlated | +1.48% | ||
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| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| DIPS | 36.97 | 1.21 | +3.39% |
| YieldMax Short NVDA Option Income Strategy ETF (DIPS) | |||
| BSSX | 25.12 | -0.10 | -0.40% |
| Invesco BulletShares 2033 Municipal Bond ETF (BSSX) | |||
| SPIN | 32.55 | -0.14 | -0.42% |
| State Street US Equity Premium Income ETF (SPIN) | |||
| SMLF | 85.79 | -0.41 | -0.48% |
| iShares U.S. SmallCap Equity Factor ETF (SMLF) | |||
| INRO | 35.67 | -0.18 | -0.51% |
| iShares U.S. Industry Rotation Active ETF (INRO) | |||