Defiance Le Cap Ex-MAG 7 ETF (XMAG)
NASDAQ (NMS) NASDAQ (NMS) Primary Summary
XMAG Chart
XMAG: Secretly Funded By The Excluded
XMAG has overtaken both RSP and the Mag-7 since May 2026, reversing the first four months of the year when the equal-weight index was leading the breadth rotation trade. Beneath the 2026 outperformance, XMAG's top holdings have shifted dramatically in just one month. Understanding which names are climbing is the first step to evaluating this ETF. In this article, I explore the central paradox of XMAG: an ETF engineered to reduce Mag-7 exposure whose outperformance may owe more to those same seven companies than its construction.
The S&P 500 Without Big Tech Is Quietly Beating the Full Index in 2026
Stripping the Magnificent 7 from the
Defiance Large Cap ex-Mag 7 ETF (NASDAQ:XMAG) Trading Down 0.2% – What’s Next?
Defiance Large Cap ex-Mag 7 ETF (NASDAQ: XMAG - Get Free Report) fell 0.2% on Friday. The company traded as low as $22.30 and last traded at $22.37. 19,153 shares traded hands during mid-day trading, a decline of 77% from the average session volume of 84,048 shares. The stock had previously closed at $22.41. Defiance
Defiance Le Cap Ex-MAG 7 ETF Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| TM Terry McHugh McHugh Group LLC | 10,000 | $197,000 | $254,100 | $57,100 | 28.98% |
Defiance Le Cap Ex-MAG 7 ETF (XMAG) FAQ
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Defiance Le Cap Ex-MAG 7 ETF Profile
| NASDAQ (NMS) Exchange | US Country |
Overview
XMAG is an innovative financial instrument designed to offer investors an alternative approach to the conventional S&P 500 Index exposure. Through its passively managed strategy, XMAG aims to mirror the performance of a broad spectrum of the United States equity market, simultaneously excluding the 'Magnificent 7'—Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla. These seven companies, often characterized by their massive market valuations and significant influence on index movements, are omitted to attain a more diversified and balanced representation of the market. By selecting constituents from the 700 largest stocks by market capitalization, minus the specified seven, XMAG provides an opportunity for investors to engage with the robustness of the broader market dynamics without the overwhelming impact of the tech giants. This exclusion strategy, combined with a meticulous quarterly reconstitution and rebalancing process, ensures that XMAG adheres to its aim of stability and broad market exposure.
Products and Services
- Passive Index Fund Strategy
This foundational aspect of XMAG's approach involves replicating a market index to provide broad market exposure, while specifically excluding the Magnificent 7 to ensure a more even representation of the US equity market. By focusing on the largest 700 stocks and selecting the top 500, minus the specified exclusions, XMAG facilitates investment in a vast array of sectors outside the concentrated tech industry. This strategy benefits investors seeking diversified exposure without the dominance of the largest tech companies.
- Quarterly Reconstitution and Rebalancing
To maintain adherence to its investment strategy, XMAG undergoes a strict process of reconstitution and rebalancing on a quarterly basis. This process ensures that the portfolio accurately reflects the ongoing changes in market capitalization within the broader market, adjusting for the entry and exit of stocks based on specified buffers. Such a mechanism is critical for preserving the integrity of XMAG's objective to offer a balanced and diversified exposure by systematically including or excluding constituents.
- Free-Float Market Capitalization Weighting
In determining the weight of each holding within the portfolio, XMAG employs a free-float market capitalization approach. This method not only aligns the fund's holdings with the actual market scenario but also mitigates the potential for market manipulation by weighting stocks based on their availability to the public rather than their total market capitalization. This weighting strategy is essential for investors looking to invest in a fund that mirrors the broader, investable market.
- Entry and Exit Buffers
XMAG utilizes entry and exit buffers to manage turnover within its portfolio, a strategy that enhances stability and reduces transaction costs. An entry buffer sets stricter criteria for adding a stock to the portfolio, while an exit buffer defines the conditions under which a holding will be sold. These buffers ensure that the portfolio adjustments are not reactionary to short-term market fluctuations, thereby maintaining its strategic focus and limiting excessive trading.
