Defiance ETFs has launched the Defiance US 100 Tech Ex Software ETF, describing it as the first U.S.-listed exchange-traded fund designed to provide exposure to Nasdaq-100 technology companies while excluding software businesses.
The passive ETF tracks the Indxx US 100 Tech Focused Ex Software Technology Index, which starts with the 100 largest non-financial companies listed on Nasdaq before removing firms that generate at least half of their revenue from software-related activities, including application software, cloud infrastructure, cybersecurity, and IT services.
According to Defiance, the fund is intended to give investors greater exposure to semiconductors, hardware, and technology infrastructure, reflecting the firm’s view that artificial intelligence will shift value creation away from traditional software providers.
“The creator economy didn’t just compete with traditional television, it changed who captured the value, and we believe AI is doing the same thing to software,” said Sylvia Jablonski, Chief Investment Officer at Defiance ETFs.
The fund’s holdings were concentrated in semiconductor companies at launch.
Defiance, founded in 2018, specializes in thematic, income, and leveraged ETFs. The issuer is also known for its leveraged single-stock ETFs covering companies such as Nvidia, Tesla, and MicroStrategy.
XIGV joins a growing list of AI-focused investment products, although it differs by seeking exposure to the hardware and infrastructure supporting artificial intelligence rather than software developers.
