Defiance AI Capacitors Leaders ETF

Fund Overview

The Defiance AI Capacitors Leaders ETF (Cboe: CAPA) seeks to track the BITA AI Capacitors Leaders Index and provides targeted exposure to publicly listed companies that generate significant revenue from the design, manufacture, and supply of advanced capacitors and passive electronic components used in AI infrastructure. CAPA is the first U.S.-listed ETF targeting the capacitor supply chain powering AI infrastructure.

Every AI accelerator, server board, and hyperscale data center depends on capacitors and passive components to condition power, regulate voltage, filter signals, suppress noise, and store energy. As AI chips draw more current at lower voltages, the passive component content per system continues to climb. Industry reporting indicates that a single AI server built on Nvidia’s GB300 platform can require roughly 30,000 multilayer ceramic capacitors, with a full rack consuming hundreds of thousands of units.¹ Murata, the largest MLCC manufacturer, has said it expects MLCC shipments into AI servers to grow at approximately 30 percent annually through 2030, reaching more than three times 2025 levels.²

In short, CAPA targets the layer beneath the chips: the components that keep AI infrastructure powered, filtered, and stable.

Why CAPA?

The layer beneath the chips. The AI infrastructure trade has moved through chips, networking, power, and cooling. CAPA offers focused exposure to the layer underneath all of it: the capacitors and passive components that every AI system is built on and runs through.

Structural demand growth. Passive component demand has historically followed consumer upgrade cycles. AI infrastructure adds a demand layer that grows with data center capex instead, with per-server capacitor content climbing as rack power architectures move from 12 volts toward 48 and even 800 volts.

Rules-based with a 20% cap. The index requires constituents to derive at least 50 percent of revenue from eligible capacitor segments or demonstrate material involvement in the ecosystem. Holdings are weighted by free-float market capitalization with a 20 percent maximum weight per issuer and rebalanced quarterly, anchoring exposure to the global leaders of the supply chain while no single company dominates.

Investment Objective

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

The Index

The BITA AI Capacitors Leaders Index is owned, calculated, administered, and disseminated by BITA GmbH. The Index is rules based and designed to provide exposure to publicly listed companies focused on advanced capacitors and passive electronic components that provide power conditioning, voltage regulation, signal filtering, noise suppression, and energy storage functions within artificial intelligence infrastructure.

Eligible business activities include, but are not limited to, multilayer ceramic capacitors (MLCCs), conductive polymer capacitors, and server-grade aluminum electrolytic and polymer hybrid capacitors.

Constituents must derive at least 50 percent of total revenue from eligible segments or demonstrate material involvement in the theme ecosystem, assessed on strategic importance to the theme ecosystem, supply chain impact, disclosed investments, R&D activity, strategic partnerships, government contracts, or patent filings. Securities are screened for a minimum $100 million market capitalization, a three-month average daily traded value of at least $100,000, and a free-float percentage of at least 10 percent. Only ordinary shares and American Depositary Receipts are eligible; if more than one share class of a company independently satisfies the eligibility requirements, only the share class with the highest three-month average daily traded value is included.

All securities that satisfy the eligibility requirements are included in the Index, and the number of constituents may vary over time. Constituents are weighted by free-float market capitalization, subject to a 20 percent maximum weight per issuer, and the Index is reconstituted and rebalanced quarterly in January, April, July, and October. Between scheduled rebalances, the Index Provider may add a newly public company with significant exposure to the theme, or a company that has shifted its principal business toward the theme, with existing constituent weights reduced proportionately.

¹ Murata Manufacturing investor materials, as reported in industry trade press, May 2026; TrendForce, February 24, 2026.

² Murata Manufacturing, as reported by Passive Components, “MLCCs in the Age of AI: Q2 2026 Market Tightness,” June 30, 2026.

BITA AI Capacitors Leaders Index Holdings