"Maximize Your Investment: The 'Magnificent Seven' S&P 500 Strategy"

Bank of America analyst Michael Hartnett coined the term "Magnificent Seven" to describe seven tech-focused companies that added over $5 trillion in value to the S&P 500 in 2023. Investing in an S&P 500 index fund effectively allocates funds to these companies, as they account for 28.37% of the index's value. The market has become less diversified, with 46.7% of the S&P 500's value concentrated in just 30 companies. While an S&P 500 index fund provides exposure to these companies, it may not be a good source of passive income, given the low average yield of its stocks. Mixing in quality dividend stocks with an S&P 500 index fund can provide exposure to large-cap growth while ensuring income opportunities.