PORTFOLIO COMPARISON / ONE VARIABLE

Magnificent 7 Backtest: An Equal-Weight Portfolio

Build an equal-weight Magnificent 7 portfolio backtest and compare its concentration, return path, and drawdowns with a broad-market reference.

Market termWidely followed mega-cap basketEqual-weight US mega-cap stocksLed its reference in this test

HISTORICAL BACKTEST RESULT

100% SPY vs Equal-weight Magnificent 7

100% SPY Equal-weight Magnificent 7
2016-08-22 → 2026-07-31 · 2496 common sessions
100% SPY$38,37314.5% annualized · -33.7% max drawdown
Equal-weight Magnificent 7$132,98829.8% annualized · -52.5% max drawdown

Historical calculation from cached Marketstack EOD data. Annual rebalancing, $10,000 initial value, nominal USD before fees and taxes. The disclosed portfolio definitions—not an AI model—produce the result.

RUN THIS PORTFOLIO

Change the rule, then compare the new result.

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WHAT TO COMPARE

Read the trade-off as a system.

  1. 01Ending value
  2. 02Maximum drawdown
  3. 03Concentration risk
  4. 04Relative performance by period

WHEN TO LOOK

Locate where the difference appeared.

Meta’s public-market history onwardMega-cap leadership2022 drawdownRecent AI-led markets

A useful comparison shows whether an advantage was broad or created by one unusually favorable period. Review the portfolio backtest methodology to understand how the same rules are applied across a shared data window.

PORTFOLIO RULE / DISCLOSED IMPLEMENTATION

Transparent equal-weight implementation

This is a transparent editorial definition of the widely used label, not an index or a recommendation.

AAPLApple Inc.Apple Inc.US large-cap stockA US-listed consumer technology company.14.29%Apple
AMZNAmazon.com, Inc.Amazon.com, Inc.US large-cap stockA US-listed e-commerce and cloud-computing company.14.29%Amazon
GOOGLAlphabet Inc. Class AAlphabet Inc. Class AUS large-cap stockA US-listed internet and advertising company.14.29%Alphabet
METAMeta Platforms, Inc.Meta Platforms, Inc.US large-cap stockA US-listed social technology company.14.29%Meta Platforms
MSFTMicrosoft CorporationMicrosoft CorporationUS large-cap stockA US-listed software and cloud-computing company.14.29%Microsoft
NVDANVIDIA CorporationNVIDIA CorporationUS large-cap stockA US-listed semiconductor and computing company.14.29%NVIDIA
TSLATesla, Inc.Tesla, Inc.US large-cap stockA US-listed electric vehicle and energy company.14.29%Tesla

REBALANCINGAnnual rebalancing. GOOGL is used as the single Alphabet share class.

DATA WINDOWThe calculation begins at the first common Marketstack EOD date for all seven securities; it cannot represent the basket before Meta’s IPO history.