The Defiance Large Cap ex-Mag 7 ETF (XMAG) is an exchange-traded fund designed to provide exposure to large-cap U.S. companies while excluding the so-called "Magnificent Seven," a group of the largest technology and growth companies in the U.S. equity market. The ETF is managed by Defiance ETFs and trades under the ticker XMAG on the NYSE Arca.

Classified as an equity ETF, the fund invests in large-cap U.S. stocks using a strategy designed to reduce concentration in the market's largest companies. By excluding the Magnificent Seven, the ETF seeks to increase exposure to other sectors and leading businesses across the U.S. economy.

The ETF follows a passive management approach and seeks to track an index composed of large-cap U.S. equities excluding Apple Inc. (AAPL), Microsoft Corporation (MSFT), NVIDIA Corporation (NVDA), Amazon.com Inc. (AMZN), Meta Platforms Inc. (META), Alphabet Inc. (GOOGL/GOOG), and Tesla Inc. (TSLA).

Diversification and sector exposure

XMAG provides exposure primarily associated with:

• U.S. large-cap companies.

• Industries outside the Magnificent Seven.

• Healthcare.

• Financials.

• Industrials.

• Consumer discretionary.

• Energy.

• Materials.

By removing the seven largest technology and growth companies from the portfolio, the fund seeks to provide more balanced exposure across the remaining large-cap universe, reducing concentration in a small number of issuers.

The ETF's performance generally reflects the performance of the remaining large-cap U.S. companies and may differ from traditional indexes such as the S&P 500 during periods when the Magnificent Seven significantly outperform or underperform the broader market.

Structure and costs

XMAG shares trade on the secondary market on the NYSE Arca during regular trading hours. Share creation and redemption occur through authorized participants, helping keep the ETF's market price aligned with its net asset value (NAV).

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. Dividends received from portfolio holdings may be distributed periodically to shareholders according to the fund's distribution policy.

History and evolution of the ETF

The Defiance Large Cap ex-Mag 7 ETF was launched in 2024 to provide investors with an alternative to traditional large-cap equity indexes that are heavily concentrated in the largest U.S. technology companies.

Since inception, the fund has sought to provide exposure to the U.S. large-cap market while excluding the Magnificent Seven, offering investors a more diversified allocation within the broader equity market.

Over time, the ETF's performance has reflected shifts in U.S. market leadership and the relative performance of the largest technology companies versus the rest of the large-cap equity universe.

Additional Information

Defiance Large Cap ex-Mag 7 ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $167.69 million.

Over the past 12 months, Defiance Large Cap ex-Mag 7 ETF recorded a return of 20.59%, with its price trading between $21.15 and $26.08 during the same period.

The ETF is traded under the ticker XMAG.