Defiance Large Cap ex-Mag 7 ETF (XMAG)

Overview

The Defiance Large Cap ex-Mag 7 ETF (ticker: NOBL) provides exposure to large-cap U.S. equities while excluding the 'Magnificent Seven' stocks (Apple, Microsoft, Alphabet, Amazon, NVIDIA, Meta, and Tesla). It seeks to offer diversification and potentially outperform market-cap-weighted indices by focusing on other large-cap companies. The ETF employs a rules-based methodology to select and weight its holdings.

Reputation and Reliability

Defiance ETFs is a relatively new issuer, but gaining traction with thematic and innovative ETFs.

Management Expertise

Defiance ETFs has a team focused on bringing innovative ETFs to market, leveraging expertise in thematic investing.

Goal

The ETF seeks capital appreciation by investing in a diversified portfolio of large-cap U.S. equities, excluding the 'Magnificent Seven' stocks.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index directly but uses a rules-based approach to select and weight its holdings based on factors like market capitalization, excluding the 'Magnificent Seven'.

Composition The ETF primarily holds stocks of large-cap U.S. companies, diversified across various sectors, excluding the Magnificent Seven technology companies. It may hold a small amount of cash.

Market Share: NOBL is a niche ETF with a small market share compared to broader large-cap ETFs.

Total Net Assets (AUM): 43355840

Key Competitors

• SPDR S&P 500 ETF Trust (SPY)
• Invesco QQQ Trust (QQQ)
• iShares Core S&P 500 ETF (IVV)
• Vanguard S&P 500 ETF (VOO)

Competitive Landscape

The ETF industry is highly competitive, with many broad market ETFs available. NOBL differentiates itself by excluding the 'Magnificent Seven', potentially offering diversification benefits if those stocks underperform. However, its smaller size and focused strategy can be disadvantages compared to larger, more diversified ETFs like SPY or IVV.

Historical Performance: Historical performance data should be obtained from official fund resources and will vary over time.

Benchmark Comparison: The ETF should be compared to benchmarks like the S&P 500 ex-Mag 7, or other broad large-cap indices excluding the 'Magnificent Seven'.

Expense Ratio: 0.29

Average Trading Volume

The ETF's average trading volume is moderate, which may affect the ease of buying and selling shares, especially in large quantities.

Bid-Ask Spread

The bid-ask spread can vary based on market conditions and trading volume, potentially impacting transaction costs.

Market Environment Factors

Economic growth, interest rates, inflation, and sector-specific trends can affect the performance of the ETF's underlying holdings.

Growth Trajectory

The ETF's growth depends on investor demand for strategies that exclude the 'Magnificent Seven' and the relative performance of its holdings.

Competitive Edge

NOBL's primary advantage is its explicit exclusion of the 'Magnificent Seven', which can be appealing to investors seeking diversification away from these dominant companies. Its rules-based selection process offers a systematic approach. By avoiding overconcentration in these tech giants, NOBL aims to capture broader market returns. It offers exposure to a wider range of large-cap stocks, potentially leading to better diversification.

Volatility

Volatility is expected to be similar to broad large-cap equity funds, although the concentrated exposure to companies outside of the mega-cap technology stocks may increase this figure.

Market Risk

The ETF is subject to general market risk, as well as specific risks related to the sectors and companies it holds, which exclude the 'Magnificent Seven'.

Ideal Investor Profile

Investors seeking exposure to large-cap U.S. equities but want to avoid the concentration risk associated with the 'Magnificent Seven' stocks may find this ETF suitable.

Market Risk

This ETF is suitable for long-term investors and passive index followers looking for diversified large-cap exposure while mitigating the concentration risk.

The Defiance Large Cap ex-Mag 7 ETF (NOBL) offers exposure to large-cap U.S. stocks while excluding the 'Magnificent Seven', aiming to provide diversification and potentially outperform cap-weighted indices. Its rules-based approach offers a systematic way to invest in large-cap companies without the dominant presence of mega-cap tech. The ETF is suited for investors seeking diversified large-cap exposure and wanting to reduce concentration risk. The niche strategy makes it a targeted solution, but smaller AUM can affect liquidity compared to mainstream ETFs.

Data Sources:

• Defiance ETFs Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Market conditions and fund performance are subject to change.