Provided are a magneto resistive effect element with a stable magnetization direction perpendicular to a film plane and with a controlled magnetoresistance ratio, and a magnetic memory using the magneto resistive effect element. Ferromagnetic layers 106 and 107 of the magneto resistive effect element are formed from a ferromagnetic material containing at least one type of 3d transition metal such that the magnetoresistance ratio is controlled, and the film thickness of the ferromagnetic layers is controlled on an atomic layer level such that the magnetization direction is changed from a direction in the film plane to a direction perpendicular to the film plane.

A spin transfer oscillator (STO) with a seed/FGL/spacer/SIL/capping configuration is disclosed with a composite seed layer made of Ta and a metal layer having a fcc(111) or hcp(001) texture to enhance perpendicular magnetic anisotropy (PMA) in an overlying (A1/A2).sub.YFeCo laminated field generation layer (FGL). The spin injection layer (SIL) may be laminated with a (A1/A2).sub.XFeCo configuration. The FeCo layer in the SIL is exchanged coupled with the (A1/A2).sub.X laminate (x is 5 to 50) to improve robustness. The (A1/A2).sub.Y laminate (y=5 to 30) in the FGL may be exchange coupled with a high Bs layer to enable easier oscillations. A1 may be one of Co, CoFe, or CoFeR where R is a metal, and A2 is one of Ni, NiCo, or NiFe. The STO is typically formed between a main pole and trailing shield in a write head.