At a glance
- The ongoing charge was not disclosed.
- The fund triggers a special rebalance if one constituent exceeds 35% of the index, or two or more names each exceed 20%, restoring equal weights within two trading days.
- For a fund selector building a megacap sleeve, the reset sets each name near 14.3% and forces a monthly trim of whichever stock has run hardest.
HANetf launched the Defiance Mag7 UCITS ETF (ticker MAGZ), an equal-weighted fund holding Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla, on Nov. 5. The ongoing charge was not disclosed.
The fund triggers a special rebalance if one constituent exceeds 35% of the index, or two or more names each exceed 20%, restoring equal weights within two trading days. It otherwise resets the seven to equal weights at the start of each month.
For a fund selector building a megacap sleeve, the reset sets each name near 14.3% and forces a monthly trim of whichever stock has run hardest. A cap-weighted broad index does the opposite, letting the strongest performer swell its share of the portfolio between rebalances.
Defiance describes MAGZ as Europe's first Mag7 ETF. The firm says the seven companies had a combined market capitalisation of nearly $24 trillion in October, about 34% of the S&P 500.
ETF distribution still costs money, as Private Wealth Daily previously reported. Hector McNeil, co-founder and co-CEO of HANetf, said Defiance has expanded to six ETFs and attracted more than $240 million in assets since entering the UCITS market in March.
Reported by the Launches desk from ETF Express. Published . Corrections