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The Surging Value of the Magnificent 7 Versus the S&P 500 (2014-2024)

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Invest in the S&P 500 with Lower Concentration DSPY S&P 500 Historical Weight ETF
A streamgraph showing the concentration of

Surging Value of the Magnificent 7 vs. the S&P 500 (2014-2024)

The Magnificent 7 stocks have soared from $1.8 trillion in 2014 to over $18 trillion in market capitalization by 2024—but is their growing dominance making the S&P 500 concentrated?

This visualization, created in partnership with Tema ETFs, provides visual context to the surging value of the Magnificent 7 stocks as a share of the S&P 500.

A Decade of S&P 500 Growth

The S&P 500 has seen remarkable growth over the past decade. In 2014, the index’s total market capitalization stood at just over $18 trillion—by the end of 2024, it had soared to nearly $50 trillion.

This surge in market value was mirrored in performance: from the start of 2014 to the end of 2024, the index delivered a total return of more than 220%.

A Decade of Magnificent 7 Growth

One group of stocks has stood out with exceptional performance: the “Magnificent 7.” This group is made up of Alphabet (Google), Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla.

Here is the evolution of each company’s market capitalization from 2014-2024:

YearGOOGAMZNAAPLMETAMSFTNVDATSLAMag. 7S&P 500
20242,3652,3523,8631,5143,2003,3551,38518,03449,810
20231,7561,5702,9949102,7941,22379012,03740,040
20221,1458572,0663201,7873643896,92832,130
20211,9171,6912,9019222,5227351,06111,74940,360
20201,1851,6342,2557781,6813236698,52531,660
20199219201,2875851,200144765,13326,760
201872473774637478081573,50021,030
2017729564861513660117523,49622,820
201653935660933248358342,41119,270
201552831858429744018322,21617,900
201436014464321738211281,78418,250

This explosive growth has had a profound effect on the broader market. These tech-heavy giants now make up over one-third of the S&P 500. This has raised concerns about concentration risk within portfolios—which occurs when a handful of companies hold an outsized influence over index performance.

The Same Index; Less Concentrated

Investing in America’s top 500 companies doesn’t have to mean accepting concentration risk. There’s a more balanced approach for investors who want exposure to leading U.S. businesses without over-relying on a few dominant stocks.

The Tema S&P 500 Historical Weight ETF (DSPY) mirrors the S&P 500 while adjusting company weights to reflect their 35-year historical average levels. This strategy aims to reduce today’s high concentration risk and provide investors with a more balanced approach to investing in the S&P 500.

Balance Your S&P 500 Exposure Today DSPY S&P 500 Historical Weight ETF

‎Disclosure

Carefully consider the Fund’s investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund’s prospectus or summary prospectus, which may be obtained by visiting www.temaetfs.com.

Read the prospectus carefully before investing.

Investors in the Fund should be willing to accept a high degree of volatility in the price of the Fund’s shares and the possibility of significant losses. An investment in the Fund involves a substantial degree of risk. Therefore, you should carefully consider the following risks before investing in the Fund.

Risk Information

Investing involves risk including possible loss of principal. There is no guarantee the adviser’s investment strategy will be successful.

Large-Capitalization Risk. Returns on investments in securities of large companies could trail the returns on investments in securities of smaller and mid-sized companies. The securities of large-capitalization companies may also be relatively mature compared to smaller companies and therefore subject to slower growth during times of economic expansion. Large-capitalization companies may also be unable to respond quickly to new competitive challenges, such as changes in technology and consumer tastes.

Calculation Methodology Risk. The Adviser relies on various sources of information to “weight-adjust” the S&P 500, including information that may be based on assumptions and estimates.

Neither the Fund nor the Adviser can offer assurances that the calculation methodology or sources of information will provide accurate “weight-adjusted” S&P 500. Errors in the S&P 500 data, S&P 500 computations or the construction of the S&P 500 in accordance with its methodology, and errors in the process of “weight-adjusting” the S&P 500 may occur from time to time and may not be identified and corrected by the Index Provider or the Adviser for a period of time or at all, which may have an adverse impact on the Fund and its shareholders.

“Standard & Poor’s,” “S&P”, and “S&P 500” are trademarks of Standard & Poor’s Financial Services, LLC and have been licensed for use by Tema ETFs LLC (“Tema”). Tema S&P 500® Historical Weight ETF Strategy is not sponsored, endorsed, sold, or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of investing in Tema S&P 500® Historical Weight ETF Strategy.

Tema ETFs LLC serves as the investment adviser to Tema S&P 500 Historical Weight ETF Strategy (the “Fund”), and NEOS Investments, LLC serves as a sub adviser to the Fund. The Fund is distributed by Foreside Fund Services LLC, which is not affiliated with Tema ETFs LLC nor NEOS Investments, LLC. Check the background of Foreside on FINRA’s BrokerCheck. For inquiries: [email protected]

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