Defiance Large Cap ex-Mag 7 ETF Up 3.28% YTD on AI Infrastructure Rotation
The Defiance Large Cap ex-Mag 7 ETF has risen 3.28% year to date as AI-driven cash flows shift toward infrastructure players like Broadcom and Nvidia. Analysts project Broadcom could generate more free cash flow than Microsoft this year, signaling broader rotation into non-mega-cap stocks.
1. YTD Performance of Defiance Large Cap ex-Mag 7 ETF
The fund has gained 3.28% year to date, contrasting with a 4.21% decline for the Roundhill Magnificent Seven ETF, while 493 of 500 S&P 500 stocks have outperformed the Mag Seven group in 2026.
2. Cash Flow Shifts Drive Rotation
Forecasts indicate Broadcom may generate more free cash flow than Microsoft this year, driving investors toward companies involved in AI infrastructure such as data center builders and power suppliers.
3. Broader Exposure to AI Infrastructure
By excluding mega-cap growth names, the ETF increases allocations in chipmakers like Nvidia, Taiwan Semiconductor Manufacturing and Micron Technology, positioning it to benefit from accelerating AI-related capital spending.