Defiance Large Cap ex-Mag 7 ETF (XMAG)

Overview

The Defiance Large Cap ex-Mag 7 ETF (QMOM) provides exposure to large-cap US equities while excluding the 'Magnificent Seven' (Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, Tesla). It aims to offer diversified exposure to the large-cap market with a focus on quality and momentum factors, potentially providing differentiated returns.

Reputation and Reliability

Defiance ETFs is a relatively new but growing issuer known for thematic and innovative ETFs. They are considered reliable in their execution of investment strategies.

Management Expertise

Defiance ETFs has a team with experience in ETF development and management, though their track record is still relatively short compared to larger, established issuers.

Goal

To provide investment results that, before fees and expenses, correspond generally to the performance of the Blue Tractor Big Cap US Quality & Momentum Index.

Investment Approach and Strategy

Strategy: The ETF tracks the Blue Tractor Big Cap US Quality & Momentum Index. The index methodology focuses on selecting large-cap companies exhibiting both quality and momentum characteristics while excluding the 'Magnificent Seven' stocks.

Composition The ETF primarily holds U.S. large-cap stocks. It diversifies across sectors, excluding the seven mega-cap technology stocks. The holdings are selected based on quality and momentum factors.

Market Share: Insufficient data available to accurately estimate QMOM's exact market share in the broader large-cap ETF market.

Total Net Assets (AUM): 129690000

Key Competitors

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

Competitive Landscape

The ETF industry is highly competitive, dominated by large players like BlackRock, Vanguard, and State Street. QMOM differentiates itself by excluding the Magnificent Seven. Compared to its competitors, QMOM provides more diversified exposure, but it might lack the high growth potential associated with the concentrated tech exposure of QQQ. As a newer fund, it faces the challenge of attracting assets and building a track record against well-established ETFs.

Historical Performance: Historical performance data needs to be sourced from financial data providers (e.g., Bloomberg, FactSet) and presented as numerical arrays of returns over specific periods (e.g., 1-year, 3-year, 5-year).

Benchmark Comparison: Benchmark comparison requires sourcing the performance data of the Blue Tractor Big Cap US Quality & Momentum Index, then comparing it against the actual returns of the ETF over the same periods. This comparison should also be presented in a numerical array format.

Expense Ratio: 0.29

Average Trading Volume

QMOM exhibits moderate liquidity with an average trading volume that facilitates relatively easy entry and exit for most investors.

Bid-Ask Spread

The bid-ask spread for QMOM is typically reasonable, indicating efficient trading and lower transaction costs.

Market Environment Factors

Economic growth, inflation, interest rates, and sector-specific trends influence QMOM's performance. It is designed to benefit from the broad market growth while mitigating the risk of over-concentration in specific technology stocks.

Growth Trajectory

QMOM's growth trajectory depends on investor appetite for diversified large-cap exposure, its ability to consistently deliver competitive returns, and effective marketing to raise awareness among investors.

Competitive Edge

QMOM's primary advantage lies in its unique approach of excluding the 'Magnificent Seven' mega-cap stocks, offering a more balanced exposure to the large-cap market. This differentiation can appeal to investors seeking diversification and potentially lower volatility compared to indexes heavily weighted in technology stocks. Furthermore, the quality and momentum factor screens could potentially improve performance over time. The fund's niche focus makes it a valuable option for investors looking to avoid the dominance of a few specific tech companies.

Volatility

QMOM's volatility should be analyzed based on historical price fluctuations, beta, and standard deviation. Quantitative data should be used to compare volatility against its benchmark and competitors.

Market Risk

QMOM is subject to market risk, meaning that its value can fluctuate based on overall market conditions. The exclusion of the Magnificent Seven aims to reduce concentration risk, but the ETF is still exposed to the general performance of the U.S. large-cap market.

Ideal Investor Profile

QMOM is suited for investors seeking broad large-cap exposure while specifically avoiding the concentration risk associated with the 'Magnificent Seven' technology stocks. These may include investors who believe these companies are overvalued or want more balanced sector representation.

Market Risk

QMOM is suitable for long-term investors and passive index followers looking for diversified exposure with a quality and momentum tilt. It may also appeal to investors making tactical asset allocation decisions based on their views of the 'Magnificent Seven'.

The Defiance Large Cap ex-Mag 7 ETF (QMOM) provides a unique approach to large-cap investing by excluding the market's most dominant technology stocks. The fund's quality and momentum factor screens aim to enhance returns. QMOM is suited for investors seeking broad market exposure without excessive concentration risk in the 'Magnificent Seven.' The ETF offers moderate liquidity and a reasonable expense ratio, making it a viable option for long-term investors seeking a distinct approach to large-cap investing.

Data Sources:

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

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Market data is subject to change. Please consult with a qualified financial advisor before making any investment decisions.