Fund inflow data shows $150 million entering XLG in the past two weeks. This increased liquidity often supports upward drift in the XLG stock price, especially amid strong earnings guidance from top constituents. 10 stocks we like better than Invesco Exchange-Traded Fund Trust - Invesco S&P 500 Top 50 ETF › The so-called "Magnificent Seven" stocks have been on a spectacular ride this year and are one of the big forces driving the broad market rally. This has been possible primarily due to the artificial intelligence (AI) boom and reduced rates. Roundhill Magnificent Seven ETF MAGS , which offers concentrated exposure to the “Magnificent Seven” stocks, is up 71% this year, just behind investors' darling bitcoin ETFs (read: 5 ETFs That Deserve Special Thanks in 2024 ). Four of the stocks — Alphabet ( GOOGL , GOOG ), Tesla TSLA , Amazon AMZN , and Apple AAPL — are hovering at new all-time highs. Although NVIDIA (NVDA) has shown some weakness in recent sessions, slipping into correction territory (down 10% from its recent peak), it is still up more than 170% this year. Meta Platforms (META), which hit a fresh high last week, gained 76% this year, while Microsoft (MSFT) is up 20%. As of Dec. 11, the Magnificent Seven market-cap valuation surpassed $18 trillion for the first time ever, according to Dow Jones Market Data. With a combined weightage of 31% in the S&P 500, these stocks are poised to see more gains in 2025. We have cited several reasons for the expected solid performances in 2025: Unstoppable AI Boom: The AI boom is fueling the rally in stocks, with companies investing considerable sums in the technology. The expansion of AI applications holds the promise of ushering in fresh growth opportunities in the tech sector and beyond. The generative AI market is poised to explode at a CAGR of 42% to $1.3 trillion over the next 10 years from a market size of just $40 billion in 2022, according to a new report by Bloomberg Intelligence (BI). Lower Rates: As the tech sector relies on borrowing for superior growth, borrowing more money for further initiatives is cheaper when interest rates are low. The Fed slashed interest rates two times over the past two months, bringing down the benchmark rate to 4.5%-4.75%. The prospect of further lower interest rates bodes well for technology stocks. Defensive Play: Citi strategist suggests that Magnificent Seven stocks could function as a defensive play in 2025 amid market uncertainty. These stocks' dominance in terms of earnings strength, cash flow resilience and market leadership positions them as anchors during periods of volatility. Solid Fundamentals: These mega-cap tech stocks have superior fundamentals compared to the rest of the S&P 500. They boast faster growth rates, higher profit margins, cleaner balance sheets and reasonable valuations (see: all the Technology ETFs here ). XLG stock price appears well-positioned to benefit from AI-driven growth stories in tech giants. This thematic tailwind has been one of the biggest drivers of large-cap ETF performance in 2024.