Is the US stock market's "Magnificent Seven" outdated? Wall Street pushes for MANGOS ETF

Wall Street is giving a new label to the AI investment frenzy. As SpaceX’s IPO sparked a market sensation, a new stock portfolio dubbed “MANGOS” has quickly become popular, and several ETF issuers have already rushed to file related fund applications. However, analysts warn that the investment rationale behind this naming game is far more worth considering than the marketing hype.

MANGOS is the acronym for Meta, Anthropic, Nvidia, Alphabet, OpenAI, and SpaceX. According to MarketWatch, after SpaceX completed its highly anticipated market debut last week, this portfolio rapidly drew market attention. Several smaller ETF issuers soon filed fund applications, seeking to turn the concept into a tradable product.

However, OpenAI and Anthropic are still private companies and not yet available for public trading, and related ETF applications are still pending approval from the U.S. Securities and Exchange Commission (SEC).

The rise of this new concept highlights expectations that the pattern of AI dividend allocation is shifting. Some investors believe that the beneficiaries of the AI boom are expanding from chipmakers and cloud computing giants to major private tech firms like OpenAI and Anthropic, which is challenging the market leading position of the “Magnificent Seven.”

From FAANG to “Magnificent Seven” to MANGOS: The Naming Game Continues to Evolve

Wall Street’s enthusiasm for naming tech stock portfolios has a long history. In the 2010s, FAANG—Facebook, Amazon, Apple, Netflix, and Google—was the hottest tech label. Afterwards, the “Magnificent Seven” became synonymous with the AI-driven bull market. Near the end of 2024, “BATMANN” concept stocks were once seen as the new pillars of the market. As Trump entered his second term, geopolitical factors brought the “TACO trade” and “NACHO trade” to the scene.

Now, MANGOS has become the latest vessel for market narrative. The rationale behind it is that as some members of the “Magnificent Seven” fade from the spotlight, the market needs a new batch of high-growth AI stocks to absorb capital. Joseph Powers, Chief Investment Officer at RWA Wealth Partners, notes that some investors may be reducing their exposure to the “Magnificent Seven” to make room for the new generation of high-growth AI firms.

Powers also points out that the nature of AI infrastructure building is evolving. At the beginning of the AI boom, big tech companies could essentially fund infrastructure investments on their own, giving them an edge over smaller competitors. But as AI spending continues to grow, more and more companies may need to seek funding in the public markets. “We’ll see how much capital SpaceX, Anthropic, and OpenAI can absorb from the markets,” said Powers.

Multiple ETF Issuers Scramble to Launch, with Complex Structural Designs

So far, several smaller ETF issuers have submitted fund applications. Corgi ETF Trust I has applied to set up the Corgi MANGOS ETF, which plans to invest at least 80% of its net assets in securities, derivatives or other instruments related to Meta, Anthropic, Nvidia, Alphabet, OpenAI, and SpaceX. Since OpenAI and Anthropic are still private, the fund might gain exposure via derivatives, private investment vehicles, or other structures.

Yorkville America Investment Trust has applied to launch two funds: Yorkville America MANGO Plus ETF and Yorkville America MANGO Plus Premium Equity Income ETF.

The former covers not only MANGOS members but also chip and hardware companies such as AMD, Broadcom, Micron Technology, Intel, and Dell Technologies. According to the filing, publicly traded MANGOS members would be held in roughly equal weights, while exposure to OpenAI and Anthropic would primarily be achieved through perpetual futures contracts. The latter would enhance income by selling covered call options on the MANGO Plus constituents.

All of the above submissions are still at the initial stage and have not yet been approved by the SEC.

Heavy on Marketing, Light on Investment Rationale

Despite the market enthusiasm, some ETF analysts remain skeptical of the true value of the MANGOS concept. Dave Nadig, President and Director of Research at ETF.com, said in a phone interview that such products may be “a somewhat overpackaged convenience mix.”

“Bundling a few not-yet-listed companies—which may only be accessible via special purpose vehicles—with several massive cloud giants and calling it a coherent investment strategy has no academic basis,” Nadig said. He believes that this portfolio mainly reflects a group of high-momentum, high-profile stocks, rather than a clear reason why these companies should be grouped in the same portfolio.

Nadig pointed out that for investors hoping to get direct exposure to the AI boom, buying relevant company stocks directly may be simpler than paying ETF management fees for a small basket of stocks. He acknowledged that such funds might have some value as a short-term trading tool—since buying one ETF is certainly more convenient than managing multiple individual stocks—but he is skeptical of their value as long-term investments. “There may be a place for these as trading tools, but they do not represent genuine investment logic,” he said.

Nadig also highlighted a deeper risk: While Wall Street's conceptual labels may serve to describe current market structure, packaging an untested story into a product too early could harm investors. MANGOS captures the latest focus of investor imagination—AI labs, chipmakers, cloud computing giants, and newly listed high-growth companies—but whether this portfolio can become the next enduring market leader is still unknown.