(MENAFN- GlobeNewsWire - Nasdaq) The Mag 7 represents a disproportionately large percentage of many investors' ETFs, mutual funds and stock portfolios, limiting attempts at diversification
MIAMI, Oct. 22, 2024 (GLOBE NEWSWIRE) -- Defiance, a leading innovator in exchange-traded funds (ETFs), today announces the launch of the Defiance Large Cap Ex-Magnificent Seven ETF (XMAG) . The ETF will be the first of its kind, offering investors exposure to equities in the S&P 500 without the inclusion of the Magnificent Seven (“Mag 7”) (Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla). XMAG offers a unique opportunity for investors to access the broader market while reducing concentration risk in these dominant tech stocks.
Many investors that use diversified investment funds have seen their portfolios increasingly concentrated in exposure to the Mag 7, which represent large holdings across tech-, growth-, and innovation-focused strategies.
“We have heard loud and clear from institutional investors and advisors that they're increasingly concerned about their sizable exposure to the Mag 7,” said Sylvia Jablonski, CEO and CIO of Defiance ETFs.“Even clients who believe that the Mag 7 will continue to grow have seen their portfolios become engulfed by these companies, and they're looking for a solution. With XMAG, we're providing the market with the broad-based, diversified exposure that investors have always sought with the S&P 500. In offering this in an ETF, we're making the process of screening seven companies out of an index of 500 more efficient, and we're excited to see the market's reception to it.”
About The Index
The BITA US 500 ex Magnificent 7 Index aims to provide a comprehensive and balanced representation of the U.S. equity market by including the largest 500 publicly traded securities, while specifically excluding the seven largest technology giants commonly referred to as the“Magnificent 7.”
This approach ensures more diversified exposure, mitigating the overconcentration risks associated with the market's most dominant funds. The index constituents are weighted based on free-float market capitalization and rebalanced quarterly. Index values are disseminated on an end-of-day basis.
About Defiance ETFs
Founded in 2018, Defiance is a leading ETF issuer specializing in leveraged and thematic ETFs. Our suite of first-mover products allows investors to take targeted positions on disruptive innovations.
Contact:
Frank Taylor / Sarah Lazarus
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Important Disclosures
Defiance ETFs LLC is the ETF sponsor. The Fund's investment adviser is Tidal Investments, LLC (“Tidal” or the“Adviser”).
The Fund's investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus and summary prospectus contain this and other important information about the investment company. Please read the prospectus and / or summary prospectus carefully before investing. Hard copies can be requested by calling 833.333.9383.
Investing involves risk. Principal loss is possible. As an ETF, the funds may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. A portfolio concentrated in a single industry or country, may be subject to a higher degree of risk.
Tracking Error Risk. As with all index funds, the performance of the Fund and the Index may differ from each other for a variety of reasons.
Large-Capitalization Investing. The securities of large-capitalization companies may be relatively mature compared to smaller companies and therefore subject to slower growth during times of economic expansion. Large-capitalization companies may also be unable to respond quickly to new competitive challenges, such as changes in technology and consumer tastes.
Market Events Risk. The Fund's investments are subject to changes in general economic conditions, general market fluctuations and the risks inherent in investment in securities and other financial instruments. Investment markets can be volatile and prices of investments can change substantially due to various factors.
Passive Investment Risk. The Fund is not actively managed and does not attempt to outperform the Index or take defensive positions in declining markets. As a result, the Fund's performance may be adversely affected by a general decline in the market segments relating to the Index.
New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.
Diversification does not ensure a profit nor protect against loss in a declining market.
Brokerage Commissions may be charged on trades.
The Fund holds 0% in Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla.
XMAG is distributed by Foreside Fund Services, LLC.
A photo accompanying this announcement is available at:
MENAFN22102024004107003653ID1108805290
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