Want to Invest in the "Magnificent Seven" Stocks? Buy This ETF Instead.

The "Magnificent Seven" stocks have been the darlings of Wall Street given their strong performances over the past couple of years. The group is made up of leading technology growth stocks that have helped power the market's bull run. The stocks in this exclusive club include chip giant Nvidia, iPhone maker Apple, search leader Alphabet, social media powerhouse Meta Platforms, electric vehicle maker Tesla, e-commerce juggernaut Amazon, and tech titan Microsoft.

Given their recent market leadership, investing in this group of stocks is tempting. However, before buying each of them individually, there is another alternative to consider: investing in the Invesco QQQ Trust ETF (NASDAQ: QQQ).

The Invesco QQQ ETF is a passively managed exchange-traded fund (ETF) that tracks the performance of the Nasdaq-100 index. The index is weighted heavily toward tech stocks, with nearly 60% of its holdings in the sector. Another 18% of its holdings are in the consumer discretionary space, although many of these names are tech-oriented as well. For example, Amazon, Tesla, Netflix, and Booking Holdings are included in this segment.

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Source Fool.com