Defiance AI Magnificent 10 ETF

Fund Overview

The Defiance AI Magnificent 10 ETF (Nasdaq: AIMG) seeks to track the BITA AI Magnificent 10 Select Index and provides exposure to 10 publicly listed companies operating across the most critical business verticals of the AI value chain, as identified by the Index Provider: compute and accelerators, custom ASICs, foundries, memory, networking, photonics, and emerging physical AI systems.

The AI buildout has been priced one layer at a time: the GPUs, then the custom accelerators, then the foundry, the memory, the networking, and the optics. Each layer has had its own rally and its own bottleneck. AIMG is built on the view that they are one supply chain. The five largest hyperscalers are expected to increase capital spending to $1.3 trillion next year from $800 billion in 2026, according to Nvidia’s chief financial officer, and the hardware side of that spending runs through a short list of companies.

Why AIMG?

The whole chain, not one link. Chips, foundries, memory, networking, and photonics have each had their moment in the AI trade. AIMG provides exposure to all of them in a single fund, from the accelerators that run AI to the optics that connect them.

Equal weight by design. Each of the ten constituents is set to the same weight at every quarterly rebalance, so the Index is built to express the full value chain rather than its largest company.

Rules-based and reconstituted quarterly. Constituents are selected by free-float market capitalization from a defined universe that can admit qualifying IPOs, and the Index is reconstituted and rebalanced in January, April, July, and October.

Investment Objective

The Defiance AI Magnificent 10 ETF (the “Fund”) seeks to track the performance, before fees and expenses, of the BITA AI Magnificent 10 Select Index (the “Index”).

The Index

The BITA AI Magnificent 10 Select Index is owned, calculated, administered, and disseminated by BITA GmbH. The Index is rules-based and tracks the performance of 10 publicly listed equity securities operating across the most critical business verticals of the AI value chain: compute and accelerators; custom ASICs; foundries; memory; networking; photonics; and emerging physical AI systems. Eligible securities may include common stock, including from foreign companies, and depositary receipts.

Index construction begins with a defined eligible universe of securities, published in the Fund’s prospectus, to which initial public offerings from companies with more than 50% exposure to any of the verticals may be added. All securities in the eligible universe are ranked by free-float market capitalization, and the top 10 are selected, with ties broken by three-month average daily traded value. Where a company has more than one qualifying share class, only the highest-ranked share class by three-month average daily traded value is considered. Final constituents are equally weighted. The Index is reconstituted and rebalanced quarterly in January, April, July, and October, effective after the close on the second Friday of the rebalancing month, based on constituent data as of the close of business 10 business days prior to the month.

The Fund invests all, or substantially all, of its assets in the component securities that make up the Index and/or options and swap contracts that provide indirect exposure to those securities. The Fund’s use of options and swaps is largely driven by its intention to maintain its qualification as a regulated investment company, and that use may be extensive. Under normal circumstances, at least 80% of the Fund’s net assets will be invested in AI Magnificent 10 Companies and/or financial instruments that provide indirect exposure to them. The Fund generally uses a replication strategy and is classified as non-diversified.

BITA AI Magnificent 10 Select Index Holdings