XMAG
Defiance Large Cap ex-Mag 7 ETF
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XMAG. An index fund that follows the S&P 500 minus the magnificent 7. Reduces some of the risk that AI stocks are inducing in the market.
There is, at least, a VOO-ex-AI, sort of: XMAG is an ETF that tracks the BITA U.S. 500 ex-Magnificent 7 Index.
Most of that "growth" is also coming from the mag7, out of which 1 is a meme stock. XMAG adjusted for inflation tells a different story. Regardless, past performance is not an indicator for future results. But I cannot imagine what could realistically happen to bring back trust to the USD and lower inflation in the next 3 years. Even after Trump leaves office (one way or another) it's going to take a lot of time & effort to fix all the damage done.
It sounds like you are looking for the XMAG ETF. Personally, I would not touch it, but I have small cap, value, and international holdings already so whatever is in VOO is not a huge concern to me. Besides, the market thinks NVidia et all are worth all that money in VOO, who am I to think I know better than the entire market?
XMAG is an ETF that holds the S&P 500 without the magnificent 7. So if you split your current VOO evenly between VOO and XMAG the only change would be that your mag 7 exposure would be cut in half. There are also the funds from Research Affiliates, which (to use their buzz phrase) indexes based on "economic footprint" rather than simple market cap.
XMAG is another option. Fees are also not ideal, though. Personally, I've moved more into small cap and gold.
XMAG -- your cost is going to be substantially higher though. .35 vs .03 with VOO. I know there are some other that equi-weight sectors. RSP is one I think and it looks like the expense ratio is .2 VTI is supposed to be more balanced with an expense ratio of .03, but even that tech is 32-ish percent.
Imagine owning XMAG for a second.
Industry standard for “viability” is typically $50M–$100M in AUM. XMAG has roughly $101M as of late 2025, which is borderline safe but still in the danger zone for niche funds. More concerning is the issuer, Defiance ETFs, which has a history of closing trendy thematic funds quickly when they don’t scale. They shuttered their NFT ETF (NFTZ) in 2023 and their Uranium ETF (URAX) in April 2025. If the “anti-Mag 7” narrative cools off, this fund could easily join that graveyard.
XMAG exists but has only been around for \~14 months.
XMAG iinstead of VOO would be my pick at this time. However over 10 years, some Nasdaq-100 etf.
Idk how it actually compares but RSP is the S&P 500 equal weighted ETF. Probably similar to XMAG but I haven’t looked into it to confirm
What's an alternative to XMAG (ie SP 493) that is actually high volume?
I like market weighing AND I don’t like excessive concentration. This is not contradictory. So at some arbitrary point (3% ?) it gets too concentrated for my risk appetite. Mag7 aggregate is at 35%. If the next ones are 20% then it is back to what the top 7 or so have been for last 30 yrs. No issue there. I dont want to remove all of tech. There’s plenty of tech which is not AI had a huge runup. Btw I didn’t know about RSP before posting this. They are even smaller than XMAG.
You're all over the place in comments. You don't want mag 7, because blah. You don't want XMAG because blah. You don't want equal weight because blah. You still want some exposure because blah. Figure out WTF you want on your own since any answer is wrong because blah.
Sounds like you already know what you want, XMAG does VOO minus MAG7. Looking at the status for last 1y it looks like 10%, which is pretty OK, especially if you are restructuring now.
You could try “TOPC” this is an iShares S&P 500 3% cap weighted ETF. Fits nicely in the middle between XMAG and RSP.
Paying 35 basis points to systematically exclude the companies driving the market’s returns is a questionable strategy. With only roughly $71M in assets, XMAG is a liquidity ghost town that faces real closure risk compared to major funds. If you hate concentration, RSP (S&P 500 Equal Weight) is the standard alternative with actual volume and history. Paying 10x the fees of VOO just to cap your upside seems backward.
I don’t need to allocate all my Large equity to XMAG. So I will still get I’m considering adding Meta, Goog MSFt & Amzn Maybe add NVDA & AAPL at half the normal weigh and zero TSLA
Buddy. FAANG and the Mag 7 are practically the same. Anyone who bought FAANG in 2010 absolutely won the last 15 years. Especially if you consider NVIDIA the “N,” FAANG is certainly a better buy than the Mag 7 because you get to skip Tesla, the worst fundamental company in the SP500 top 10 by light years. The network effects of companies like Meta and the infrastructure-like qualities of Google and Amazon are unparalleled by the private sector in human history. I thoroughly believe 4/7 Mag 7 companies would survive the collapse of the United States. That being said, if you buy the SP500 right now, you’re already ~40% MAG 7. Might as well take control of that weighting by combining them with XMAG. Not to mention, the entire economic system here is designed to funnel money to the top 1-10%. What makes you think the business world is any different? Mid cap tech companies are competing with these behemoths who make their annual revenues in weeks.
That's not true, they're like 0.2-0.5% to borrow. Which is pretty much the same as the expense ratio on XMAG, so just buying XMAG is same/lower fees than buying VOO and shorting mag 7 manually. And that is assuming zero transaction fees. Not to mention you will probably lose more in slippage and other fees that funds like XMAG are much better at handling than an individual. None of this means I think XMAG is a good idea, but if you want S&P500 - mag 7, XMAG is much easier and pretty much same fees as doing it manually.
Then buy VOO and sell short the mag 7 stocks. Eg for every 100 shares of VOO you sell short 26.25 shares of NVDA. NVDA IS Approx 8 percent of VOO or $4896. Then divide 4896 by NVDA closing price of 186.6. Then do that for the other 6 stocks. Too much work then just convert to XMAG
Ah ! There you are, nice to know XMAG today !
XMAG is this. RSP (equal-weighted S&P fund) is similar in that it dramatically reduces tech exposure. For the record, I am not saying either of these are good investments- but they are what you are asking for!
You could move some of your money into XMAG, which is the S&P 500 minus the Mag 7. That would keep the S&P 500 intact except for reducing exposure to the Mag 7. Or you could move some money into value index funds. Or move some money into international. Or you could look over the 11 sectors that the S&P 500 is divided into, and move some money into a few of those that are not tech.
> Do you sell your US or AI holdings and invest in emerging markets No. That is like using gasoline to start a home remodeling project. You can adjust your asset allocation plan in a calm, methodical manner. You could move some of your broad index funds into XMAG to reduce your exposure to the Mag 7. You could move some money into value index funds. You could used sector index funds to reduce tech exposure. You could use Research Affiliates funds. Of course doing any of these will get you excommunicated from he He Church of VOO and Chill.
There’s also XMAG, which is the remaining companies in the S&P market cap weighted (493 companies so no Mag 7). This has performed better than RSP equal weight.
Yes my bad, was XMAG I meant to look at.
XMAG is still tech heavy. AVGO AMD IBM
Don't sell. Just counter with some XMAG if you think it's frothy up there.
XMAG was created only a year ago. The 5 year returns you see are from 2024-10-21, not 2020.
How do people feel about funds like SPXT or XMAG that exclude the tech giants?
https://finance.yahoo.com/quote/XMAG/ S&P minus Mag7 does a close job
XMAG is up 16% YTD regard
Pretty much. XMAG etf (sp500 ex mag 7) is only up 0.20% ytd accdg to yahoo finance
I'm newish around investment, but can't you just buy XMAG and then individual stocks from the Mag7 except Tesla? I've seen a lot of people into SP500 ETFs and doubling down on their favourite stocks inside, and if you exclude Tesla, there's only 6 to buy individually
Bonds, International Mixed Funds, and I've also moved to XMAG instead of VOO.
XMAG is the S&P 500 minus the magnificent 7. Research Affiliates generate a number of indexes (RAFI) used for ETFs and mutual funds that tend to be light on tech/value tilted. The S&P 500 is divided into 11 sectors, and there are individual sector funds available. Consumer Staples, for example, is pretty far from tech. I am sure that others will chime in additional, and probably better, ideas.
If ex-Magnificent Seven is what you want, there is exactly such a fund for it, XMAG. If you want to exclude some other set of stocks, there's a few ways. You could look for funds which don't include it like value funds VTV or fundamental-weighted funds FNDX or ex-GICS-tech SPXT. Simple but not very targeted. You could stub out the stocks by buying the broad market and shorting the particular stocks or an ETF of those stocks which you don't want, and top off your beta with some leverage back into the broad market. Kind of a lot of work. You can look for a direct indexing service and craft your own portfolio of stocks without those stocks. You could just buy your own portfolio of stocks.
Im aware of XMAG, but I need the historical earnings data for XMAG, which I cannot find anywhere
XMAG hasn’t existed long, but it is what you are asking for.
XMAG strategy! And invest more in energy. Even the current level of AI crap will require a lot more energy. Sad but true. It's such an epic disaster. The world was suppossed to reduce energy usage. And now we're ramping it up for extremely wasteful data centers. We live in the most dystopian time line. AI will be used primarily for price gouging. Yippee
XMAG is an ETF using the S&P 500 without the Magnificent 7. CAPE is not available, but P/E is. XMAG P/E is 21.62, compared to 31.0 for the full S&P 500. Historically the median for the S&P 500 is 15.05. So on the face of it high, but not nosebleed levels. However, I suspect (but do not know) that taking out the top 7 best performing stocks throughout history would push valuations below the median for the full index.
Gold goes up when there’s uncertainty. I’ve taken full advantage of that lately. Buying physical gold or an ETF like IAU. SGOV/SNSXX seems like a good way to diversify as well. You can diversify into XMAG, VT, etc but those will tank if the mag7 tanks.
XMAG, RSP and FNDX are three approaches that might help you towards your goal. And of course, anything international.
There are funds out there that de-emphasize the Mag 7. FNDX and XMAG are two examples, the former using an index methodology that is not based on market cap and the latter simply excludes the Mag 7. Simply moving some of your current S&P 500 exposure to XMAG would cut your Mag 7 exposure while leaving everything else intact. Increasing your international allocation is another way to back away from the Mag 7 and also buy into lower valuations across the board.
There is actually it's XMAG
Instead of XMAG just do a higher percentage of your diversifiers. For sure do 20%+ of VXUS. And like 10% each of small and midcaps.
If you believe that, probably “value” ETFs like (VTV) or even dividend growth (DGRO) to keep some big stocks while minimizing the effects of any AI stock crash. There’s also ETFs concentrating on the rest of the S&P 500 like XMAG (the lower S&P 493) or iShares new XOEF (the 500 minus the top 100). While AI may be a bit overhyped IMHO, ..but still will be a force to be reckoned with.
I agree there is a lot of AI hype, but Microsoft, Apple, Amazon, Google were all doing very well before the AI talk and they offered plenty of other products and services. I would not want a portfolio without these giants. XMAG is a S&P500 ETF without the mag7, literally 493 holdings. It’s still new so I can only compare the YTD performance, but it’s doing very well when compared to S&P, sometimes beating it. There is no Nvidia, Apple, Microsoft, Amazon, or Google carrying it. RSP is an equal weighted S&P500 fund, meaning each holding makes up 0.29% or less of the ETF. It can’t rely on big AI tech companies to carry it. Despite this disadvantage RSP only underperformed S&P by about 3% over 10 years, and about 2.5% over 5 years. Based on this data collected from Fidelity.com, I would not abandon the S&P 500. If you’re still nervous then maybe consider XMAG or RSP, FSTA for consumer staples equity, or other sector ETFs. The larger the collection of ETFs though, the more aggravating it will be to manage, good luck.
You can hedge with XMAG which is an ETF that uses the S&P without the Mag 7. Alternatively you could get a total market ETF which will be slightly less concentrated. Waiting in cash and trying to time entry is a losing game.
The top seven or eight S&P 500 drag the rest of it up. If you remove them then the rest are almost flatlining. Check out XMAG v MAGS.
there's an etf called XMAG
If both are in the “MAG7”, there’s the XMAG ETF which doesn’t contain those MAG 7 stocks, rather the remaining 493 or so in the “large cap” index (typically S&P 500). Then perhaps buy the remaining stocks individually on the market. If both are “consumer discretionary” stocks, you could buy a low cost tech ETF index like FTEC and then a “value” index fund like Vanguard’s VTV or iShares IUSV. Another idea is see if they are excluded from a “quality” screened index (like iShares “QUAL”) .. as somewhat problematic stocks also have a lot of leverage and perhaps sales problems.
There is not a very easy way to do it. There is XMAG, an ETF that doesn't have the magnificent 7. And then you could buy the other 5 companies separately to exclude just Apple and Tesla. Alternatively you could get an equal-weighted S&P500 ETF (RSP) which limits exposure to the Mag 7, and then buy those 5 stocks separately.
If you’re young, definitely focus on growth. But keeping say 20% in SCHD for diversity seems entirely reasonable. What’s not reasonable is holding QQQM and most of the MAG 7 individually - choose one or the other and then diversify more - small caps, utilities, foreign, or maybe just RSP or XMAG. I have no idea what the stock market is going to do over the next 10 years – but I can pretty much guarantee that the mag seven will not see 1000% growth again.
Hell, Defiance Large Cap ex-Mag 7 ETF (XMAG) has a 25 P/E. Basically everything but healthcare is overpriced, and healtchare is ick.
I mean XMAG has been created because people are worried about the concentration risk of 7 companies being >25% of the index. Part of their power is down to the amount of passive flows they receive which is self reinforcing. You could also own mid cap/small cap indices like S&P 400.
There’s around 3,700 investable public companies in the U.S. alone, so creating a fund for every individual investor’s personal grievances is not really feasible. There are some that say, exclude the Mag7 companies (XMAG), as well as various ESG and some Shariah funds that make non-investment criteria exclusions. But if you want VOO, you get everything that entails - you could short the parts you don’t like if so inclined. Or take the profits and apply them to countering causes.
That's the best solution then, buy XMAG plus the other 6 of the Magnificent 7
There’s XMAG which is just the SP500 minus the “magnificent seven”
A year later but this came out XMAG . I like the idea. https://www.defianceetfs.com/xmag/
XMAG holds JPM, MS, TROW, BLK, STT which are all part of the [largest shareholders](https://finance.yahoo.com/quote/TSLA/holders/) in TSLA.
I am seeing XMAG and QUAL as options. I want to check how much much balancing out XMAG with other things might work.
There's a new ETF under ticker XMAG that does exactly what you want. [https://www.globenewswire.com/news-release/2024/10/22/2966738/0/en/Defiance-Launches-XMAG-The-First-ETF-Offering-Exposure-to-the-S-P-500-Excluding-the-Magnificent-7-Tech-Giants.html](https://www.globenewswire.com/news-release/2024/10/22/2966738/0/en/Defiance-Launches-XMAG-The-First-ETF-Offering-Exposure-to-the-S-P-500-Excluding-the-Magnificent-7-Tech-Giants.html)
Actually, there are 503 stocks in the S&P 500, so it would be a 495 etf. As of this week it does exist. Its symbol is XMAG, as in x'ing out the Mag 7 from the S&P.
There is an ETF that does this now. It opened this week. I just put a little into it to see how it does. The symbol is XMAG. It is doing this specifically for the reason you mentioned, the Mag 7 are overweight in the S&P and in other ETFs so people end up over exposed to those particular stocks without even realizing it.
There is an ETF that does this now. It opened this week. I just put a little into it to see how it does. The symbol is XMAG. It is doing this specifically for the reason you mentioned, the Mag 7 are overweight in the S&P and in other ETFs so people end up over exposed to those particular stocks without even realizing it.