By John Seetoo
Publication Date: 2026-04-20 13:16:00
Passive index investing has a concentration problem. The seven largest technology companies now account for roughly 35% of the S&P 500, which means owning a standard index fund today is less “broad market” and more “bet heavily on a handful of AI-driven mega-caps.” That reality is exactly what Defiance Large Cap ex-Mag 7 ETF (NASDAQ:XMAG) was designed to address.
The chart displays the total return comparison between the S&P 500 Total Return index and three prominent S&P 500 ETFs, illustrating broad market performance and diversification from 2015 to November 2024.
XMAG tracks the BITA US 500 ex-Magnificent 7 Index, which holds the 500 largest U.S. stocks weighted by free-float market cap, with one hard rule: Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta, and Tesla are permanently excluded. What remains is roughly 493 companies that have spent years in the shadow of those seven names.
The fund launched in October 2024 and carries a 0.35% expense…
