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Should Defiance Large Cap ex-Mag 7 ETF (XMAG) Be on Your Investing Radar?
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Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the Defiance Large Cap ex-Mag 7 ETF (XMAG - Free Report) , a passively managed exchange traded fund launched on October 21, 2024.
The fund is sponsored by Defiance Etf. It has amassed assets over $200.38 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.35%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Energy sector -- about -999900% of the portfolio. Industrials and Materials round out the top three.
Looking at individual holdings, Micron Technology Inc (MU) accounts for about 2.8% of total assets, followed by Broadcom Inc (AVGO) and Eli Lilly & Co (LLY).
The top 10 holdings account for about 19.57% of total assets under management.
Performance and Risk
XMAG seeks to match the performance of the BITA US 500 EXMAGNIFICENT 7 INDEX before fees and expenses. The BITA US 500 exMagnificent 7 Index aims to provide a comprehensive and balanced representation of the US equity market by including the largest 500 publicly traded securities, excluding seven largest technology giants commonly referred to as the Magnificent 7.
The ETF has gained about 13.75% so far this year and is up about 16.07% in the last one year (as of 10/23/2026). In the past 52-week period, it has traded between $21.57 and $26.56.
The ETF has a beta of 0.81 and standard deviation of 14.37% for the trailing three-year period. With about 496 holdings, it effectively diversifies company-specific risk.
Alternatives
Defiance Large Cap ex-Mag 7 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, XMAG is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the Vanguard 500 Index Fund ETF Shares (VOO) track a similar index. While iShares Core S&P 500 ETF has $877.91 billion in assets, Vanguard 500 Index Fund ETF Shares has $1,031.97 billion. IVV has an expense ratio of 0.03% and VOO charges 0.03%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should Defiance Large Cap ex-Mag 7 ETF (XMAG) Be on Your Investing Radar?
Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the Defiance Large Cap ex-Mag 7 ETF (XMAG - Free Report) , a passively managed exchange traded fund launched on October 21, 2024.
The fund is sponsored by Defiance Etf. It has amassed assets over $200.38 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.35%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Energy sector -- about -999900% of the portfolio. Industrials and Materials round out the top three.
Looking at individual holdings, Micron Technology Inc (MU) accounts for about 2.8% of total assets, followed by Broadcom Inc (AVGO) and Eli Lilly & Co (LLY).
The top 10 holdings account for about 19.57% of total assets under management.
Performance and Risk
XMAG seeks to match the performance of the BITA US 500 EXMAGNIFICENT 7 INDEX before fees and expenses. The BITA US 500 exMagnificent 7 Index aims to provide a comprehensive and balanced representation of the US equity market by including the largest 500 publicly traded securities, excluding seven largest technology giants commonly referred to as the Magnificent 7.
The ETF has gained about 13.75% so far this year and is up about 16.07% in the last one year (as of 10/23/2026). In the past 52-week period, it has traded between $21.57 and $26.56.
The ETF has a beta of 0.81 and standard deviation of 14.37% for the trailing three-year period. With about 496 holdings, it effectively diversifies company-specific risk.
Alternatives
Defiance Large Cap ex-Mag 7 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, XMAG is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the Vanguard 500 Index Fund ETF Shares (VOO) track a similar index. While iShares Core S&P 500 ETF has $877.91 billion in assets, Vanguard 500 Index Fund ETF Shares has $1,031.97 billion. IVV has an expense ratio of 0.03% and VOO charges 0.03%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.