The ‘Anti-Mag 7’ ETF Is Up 12% and Looks Ready To Run

3 days ago 7

John Seetoo

Thu, November 27, 2025 astatine 10:33 AM CST 5 min read

The Defiance Large Cap ex-Mag 7 ETF (XMAG) posted a 13.54% instrumentality year-to-date by excluding the Magnificent 7 stocks from the S&P 500.
XMAG outperformed the calculated 7% instrumentality of the S&P 500 without the Magnificent 7 by astir 650 ground points.
The ETF tracks 493 ample headdress stocks with apical holdings including Broadcom and Eli Lilly alternatively of Apple oregon Nvidia.
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It’s nary concealed that the S&P 500’s astonishing bull tally of the past respective years has been led by the AI tech “Magnificent 7” stocks, which are besides the apical stocks by marketplace cap. These stocks see immoderate of the archetypal US stocks to ace the trillion dollar marketplace headdress valuation ceiling. The Magnificent 7 includes: Apple (NASDAQ: AAPL), Alphabet (Google) (NASDAQ: GOOG), Amazon (NASDAQ: AMZN), Meta Platforms (Facebook) (NASDAQ: META), Microsoft, Nvidia (Nasdaq: NVDA), and Tesla.

Fueled by the gigantic involvement successful AI, the Magnificent 7 relationship for much than fractional of the S&P 500’s year-to-date gains. The S&P 500’s returns astatine the clip of this penning are astir 16%. Take distant the Magnificent 7 stocks, and that fig drops to 7%. Given the information that a fig of marketplace watchers of note, including Michael “The Big Short” Burry deliberation that the AI assemblage has go a bubble astir to burst, investors are seeking alternatives to hedge their important gains successful VOO, SPY, and different S&P 500 ETFs. One of the ways to proceed the gains from the S&P 500 without the downside risks of Magnificent 7 vulnerability is to put successful an ETF that tracks the S&P 493, i.e., the S&P 500 sans Magnificent 7 stocks. The Defiance Large Cap ex-Mag 7 ETF (NASDAQ: XMAG) fits that statement to a tee.

The BITA US 500 ex-Magnificent 7 Index tracks a rebalanced S&P 500 without the Magnificent 7 largest marketplace AI headdress stocks, efficaciously making it an scale for the S&P 493.

BITA GmbH is simply a German Fintech institution founded successful 2018. Among its unsocial indexes are: *

BITA Canada 50 Index (BCA50G)
The FreeCap Financial BITA Decarceration Index
Five New Thematic Indexes (Themes ETFs partnership)

Created successful October 2024, The BITA US 500 ex-Magnificent 7 Index was intended to screen a diversified scope of ample headdress stocks. By offering an alternate greater diversification without the AI assemblage concentrated overweighting to investors an ETF tracking this scale could conceivably hedge their imaginable volatility and hazard vulnerability to the Magnificent 7 stocks if fears implicit an AI bubble proved to beryllium correct. The BITA US 500 ex-Magnificent 7 Index rebalances quarterly.