Defiance Large Cap ex-Mag 7 ETF (XMAG)

Overview

The Defiance Large Cap ex-Mag 7 ETF (ticker: NOBL) provides exposure to large-capitalization US equities, excluding the 'Magnificent Seven' stocks (Apple, Microsoft, Alphabet, Amazon, NVIDIA, Meta, and Tesla). It aims to offer diversified large-cap exposure with reduced concentration risk.

Reputation and Reliability

Defiance ETFs is a newer ETF issuer focusing on thematic and disruptive innovation investments.

Management Expertise

Defiance ETFs employs a team of investment professionals with experience in ETF management and thematic investing.

Goal

To provide investment results that closely correspond, before fees and expenses, to the performance of the Blue Tractor Big Cap US Total Stock Index.

Investment Approach and Strategy

Strategy: The ETF tracks the performance of the Blue Tractor Big Cap US Total Stock Index, which excludes the 'Magnificent Seven' companies.

Composition The ETF primarily holds large-cap US equities across various sectors, excluding the specified seven technology and consumer discretionary giants. The underlying index is designed to be market-cap weighted, but with adjustments to exclude the Mag 7.

Market Share: The market share is relatively small as it's a niche product.

Total Net Assets (AUM): 85887886

Key Competitors

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

Competitive Landscape

The ETF industry is dominated by a few large players offering broad market exposure. NOBL differentiates itself by excluding the 'Magnificent Seven', appealing to investors seeking diversification away from these dominant stocks. This focus provides a unique value proposition compared to broad market ETFs but also limits its potential market share. RSP offers a similar approach by equal weighting, though not specifically excluding the Mag 7.

Historical Performance: Historical performance data is based on the ETFu2019s performance since its inception. Please refer to the fund's official website or other financial data provider.

Benchmark Comparison: The ETF's performance should be compared to the S&P 500 excluding the 'Magnificent Seven' stocks.

Expense Ratio: 0.29

Average Trading Volume

The average trading volume is moderate, and potential investors should be aware that this may impact execution.

Bid-Ask Spread

The bid-ask spread could potentially be wider than more liquid ETFs, reflecting the lower trading volume, although this spread is generally less than 0.1%.

Market Environment Factors

Economic conditions, interest rates, and overall market sentiment influence the performance of large-cap stocks. The performance of NOBL hinges on sectors outside of mega-cap technology, making it sensitive to factors impacting those industries.

Growth Trajectory

The ETF's growth depends on investor demand for diversified large-cap exposure and the performance of sectors outside of the 'Magnificent Seven'. Its growth trajectory is tied to investor concern regarding concentration risk within the S&P 500.

Competitive Edge

NOBL's competitive advantage lies in its targeted exclusion of the 'Magnificent Seven' stocks, offering investors a way to reduce concentration risk and gain exposure to other large-cap companies. Its unique strategy caters to investors who believe these stocks are overvalued or wish to diversify their holdings. The ETF's composition provides a different risk/return profile than broad market indexes. The relative youth of the ETF is a potential disadvantage. It aims for a differentiated exposure within the Large-Cap space.

Volatility

The ETF's volatility will likely be similar to the broader large-cap market, but possibly lower due to reduced concentration in the highly volatile 'Magnificent Seven' stocks.

Market Risk

Market risk is a primary concern, as declines in the overall stock market will negatively impact the ETF's value. Specific risks relate to the performance of the non-'Magnificent Seven' large-cap companies held by the ETF. A downturn in those sectors can affect the fund.

Ideal Investor Profile

The ideal investor is someone seeking large-cap equity exposure but wants to diversify away from the 'Magnificent Seven'. It suits investors concerned about concentration risk or those with specific views on the valuation of the largest technology and consumer discretionary companies.

Market Risk

The ETF is suitable for long-term investors seeking diversified large-cap exposure with a specific investment thesis. It may also appeal to active traders seeking to express a view on the relative performance of the 'Magnificent Seven' stocks versus the rest of the large-cap market.

The Defiance Large Cap ex-Mag 7 ETF provides access to large-cap US equities, excluding the 'Magnificent Seven' stocks. This ETF is suitable for investors seeking to diversify their portfolio away from mega-cap technology stocks. The ETF's performance will depend on the relative performance of the large-cap market outside the 'Magnificent Seven'. Its expense ratio is 0.29%, and it has moderate trading volume and a relatively small AUM compared to major competitors, indicating it is a very niche product.

Data Sources:

• Defiance ETFs website
• ETF.com
• Morningstar

Disclaimers:

The information provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on your own research and risk tolerance. Past performance is not indicative of future results.