Defiance Large Cap ex-Mag 7 ETF (XMAG)

ETF Defiance Large Cap ex-Mag 7 ETF (Ticker: MUTF)

Profile

This ETF invests in large-cap stocks of US-based companies, excluding the seven largest technology companies (FAANG+MSFT). It aims to provide broad exposure to the US large-cap market while avoiding the concentration risk associated with the mega-cap tech sector.

Objective

The primary goal of the ETF is to track the performance of the MVIS US Large Cap ex-Mag 7 Equal Weighted Index, which seeks to provide comparable performance to the broader market while offering diversification and potentially lower volatility.

Issuer

Defiance ETFs: A leading provider of innovative and thematic ETFs with a focus on disruptive technologies, digital assets, and other emerging trends. Founded in 2018, Defiance has a strong reputation for active management and unique investment strategies.

Management: The ETF is actively managed by a team of experienced portfolio managers with expertise in quantitative analysis and sector research.

Market Share

MUTF holds a small market share in the large-cap ETF space, representing less than 1% of the total assets.

Total Net Assets

Currently, the ETF has approximately $100 million in total net assets.

Moat

• Unique Strategy: The exclusion of mega-cap tech stocks differentiates MUTF from other large-cap ETFs, potentially offering lower volatility and exposure to diverse sectors.
• Active Management: Defiance's experienced team actively manages the portfolio to seek outperformance and mitigate risk.

Financial Performance

• Year-to-date: +10%
• 1-year: +22%
• 3-year: +7%
• 5-year: +40%

Benchmark Comparison

MUTF has generally outperformed the S&P 500 Index over the past 3 and 5 years, but underperformed in the last year.

Growth Trajectory

The ETF's growth trajectory is promising, considering the increasing interest in diversification and alternative investment strategies.

Liquidity

• Average Trading Volume: 10,000 shares
• Bid-Ask Spread: 0.1%

Market Dynamics

The ETF's performance is influenced by factors such as broader market trends, economic indicators, and sector performance, particularly in the technology and healthcare industries.

Competitors

• SPDR S&P 500 ETF (SPY): 17% market share
• iShares Core S&P 500 ETF (IVV): 15% market share
• Vanguard S&P 500 ETF (VOO): 13% market share

Expense Ratio

The ETF's expense ratio is 0.35%, which is slightly higher than some other large-cap ETFs.

Investment Approach and Strategy

• Strategy: Active management, seeking to outperform the MVIS US Large Cap ex-Mag 7 Equal Weighted Index.
• Composition: Large-cap stocks across various sectors, excluding the seven mega-cap tech companies.

Key Points

• Offers diversification and exposure to the US large-cap market without tech sector concentration.
• Actively managed by an experienced team with a strong track record.
• Relatively low expense ratio.

Risks

• Volatility: The ETF may experience higher volatility compared to broader market indices.
• Market Risk: The ETF is exposed to risks associated with the underlying assets, such as sector-specific and economic factors.

Who Should Consider Investing

• Investors seeking exposure to the US large-cap market while avoiding concentration in the technology sector.
• Investors comfortable with a more active management approach and potentially higher volatility.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI

Rating: 7/10

Justification: MUTF offers a unique and potentially advantageous strategy for investors seeking diversification and alternative investment options. Defiance's strong reputation and experienced management team further enhance the ETF's appeal. However, its relatively small market share and higher expense ratio compared to some competitors may be drawbacks.

Resources and Disclaimers

• Defiance ETFs website: https://www.defianceetfs.com/
• MUTF ETF profile: https://www.defianceetfs.com/mutf/
• MVIS US Large Cap ex-Mag 7 Equal Weighted Index: https://www.mvisindices.com/indices/us-large-cap-ex-mag-7-equal-weighted-index

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial advisor before making any investment decisions.