According to Edward Dowd, foreign investors who purchased $SPX ETFs at the height of the MAG 7 mania faced a significant concentration risk, with 34% of their investment being exposed to just seven stocks. This highlights a lack of diversification in their portfolios, which poses potential risks in terms of volatility and market correction impacts. Proper diversification is crucial for managing risk in ETF investments.

According to Eric Balchunas, Defiance has filed for a new ETF named $TRIL, which will encompass companies with market capitalizations exceeding one trillion dollars. The current list includes the 'Mag 7' and Berkshire Hathaway. This ETF could present new trading opportunities for investors focusing on large-cap stocks, offering exposure to the most financially robust companies as identified by their market cap. Source: Eric Balchunas via Twitter.