AIMG ETF Tracks 10 AI Stocks, Only 2 From the Magnificent Seven

The name AI Magnificent 10 suggests a larger version of the Magnificent Seven. The index behind AIMG tracks 10 AI-linked stocks, yet only Nvidia and Alphabet belong to the traditional group. The remaining names push the portfolio deeper into semiconductors, memory, chip manufacturing, networking and photonics, changing what the fund actually represents.

Key Takeaways

• Only 2 of the 10 names in AIMG’s disclosed eligible universe belong to the traditional Magnificent Seven.

• The index equally weights its 10 final constituents, giving each roughly 10% at a rebalance rather than letting the largest company dominate.

• Five disclosed AIMG names also appear in both SMH and SOXX, creating more semiconductor overlap than the Magnificent branding suggests.

• AIMG’s prospectus lists 0.61% in total annual fund operating expenses, compared with 0.30% for MAGS, 0.35% for SMH and 0.18% for QQQ as of September 2026.

• The index is reconstituted quarterly in January, April, July and October, so today’s 10-stock selection is not permanent.

Only 2 of AIMG’s 10 Names Come From the Magnificent Seven

The Defiance AI Magnificent 10 ETF, ticker AIMG, seeks to track the BITA AI Magnificent 10 Select Index before fees and expenses. The SEC prospectus describes the benchmark as a rules-based index of 10 publicly listed securities operating across key parts of the artificial intelligence value chain.

BITA’s selection process starts with an eligible universe and ranks securities by free-float market capitalisation. The top 10 are selected for possible inclusion, with three-month average daily traded value used as a tie-breaker. Final constituents are equally weighted.

The traditional Magnificent Seven consists of Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla. Among the 10 names disclosed in AIMG’s current eligible universe, only Alphabet and Nvidia appear in that group.

That 20% overlap immediately separates AIMG from a fund such as MAGS, which is built specifically around all seven Magnificent Seven companies.

The Other Eight Push AIMG Deeper Into AI Infrastructure

The disclosed universe shows that AIMG’s definition of an AI leader reaches well beyond the largest consumer-facing technology platforms.

The role descriptions above are simplified editorial descriptions, not formal classifications BITA assigns to each company.

The prospectus defines the index around seven business verticals, including compute and accelerators, custom ASICs, foundries, memory, networking, photonics and emerging physical AI systems.

The important shift is visible in the composition. Eight of the 10 disclosed names sit outside the established Magnificent Seven, moving the portfolio further into the hardware and infrastructure required to build and connect AI systems.

Equal Weighting Gives Each Constituent About 10% at Rebalance

Nvidia can begin a rebalance with roughly the same index weight as a much smaller company such as Lumentum or Coherent.

BITA uses company size to help determine which securities qualify for selection, then assigns equal weights to the final 10 constituents. An equal split across 10 names implies a starting weight of roughly 10% each.

Company size influences membership but does not determine portfolio weight after selection.

The structure limits the largest constituent's starting influence and gives smaller companies considerably more weight than they would receive in a market-cap-weighted portfolio. Those percentages can drift between quarterly reviews as share prices move, then reset at the next rebalance.

Ten Stocks Can Still Depend on One Spending Cycle

Several AIMG constituents sit at different stages of the same AI infrastructure buildout. Higher demand for accelerated computing feeds into advanced chip production, memory capacity, networking equipment and optical connections. A sharp slowdown in large-scale AI capital expenditure could therefore reach several holdings through different revenue channels.

The SEC classifies AIMG as a non-diversified fund, meaning it can place a larger share of assets in a smaller number of issuers than a diversified fund. The prospectus also states that the underlying index was concentrated in the semiconductors and semiconductor equipment group as of July 24, 2026.

Company diversification and economic-driver diversification are different things. AIMG spreads company-specific risk across 10 names while remaining highly sensitive to the pace of AI infrastructure spending.

AIMG Has More Semiconductor Overlap Than Its Name Suggests

Looking only at the word “Magnificent” understates how closely part of AIMG resembles existing semiconductor exposure.

Five names disclosed by AIMG also appeared in both SMH and SOXX in early September 2026. They were Nvidia, TSMC, Broadcom, Micron and Marvell. The comparison becomes clearer when you reduce each ETF to its main portfolio job.

AIMG reaches beyond semiconductor funds through Alphabet and companies focused on memory and optical infrastructure, but it remains much narrower than QQQ.

The practical overlap question therefore sits closer to semiconductors versus broader AI infrastructure than to the Magnificent Seven versus the Magnificent Ten.

AIMG Charges 0.61% for Its Narrower Selection

AIMG’s statutory prospectus lists a 0.59% management fee and 0.02% in estimated other expenses, producing total annual fund operating expenses of 0.61%. The SEC notes that the 0.02% figure is based on estimated amounts for the current fiscal year.

As of September 2026, MAGS carried a 0.30% gross expense ratio, SMH 0.35%, and QQQ 0.18%.

Those products do different jobs, so the fee comparison should not be read as a ranking. The useful question is how much distinct exposure AIMG retains after accounting for holdings already available through Magnificent Seven, semiconductor and Nasdaq-focused ETFs.

Higher overlap leaves less of the portfolio differentiating AIMG from cheaper alternatives.

Quarterly Reviews Can Change the 10-Stock Lineup

AIMG’s current selection should be treated as the output of a rules-based methodology rather than a permanent list.

BITA reconstitutes and rebalances the index quarterly in January, April, July and October, after the close on the second Friday of the relevant month. Constituent data is taken from 10 business days before the rebalance month.

Newly listed companies can also enter the eligible universe when more than 50% of their exposure comes from one or more of the qualifying AI business verticals. They must then compete with other eligible securities under the same ranking process.

The methodology can remain stable while the 10 companies change. That distinction keeps the fund relevant if leadership shifts across AI hardware, memory, manufacturing, or connectivity.

The Real Test Is Whether AIMG Stays Distinct

AIMG’s long-term identity will depend on what future index reviews continue selecting.

Three signals are especially useful to watch.

• Constituent overlap will show whether AIMG increasingly resembles MAGS, SMH, SOXX or QQQ.

• Economic concentration will show whether different companies remain tied to the same AI capital-spending cycle.

• Quarterly changes will reveal whether new parts of the AI infrastructure chain become large enough to enter the index.

A fund can begin with an unusual combination of companies and gradually move closer to established alternatives as market values change. AIMG’s differentiation must survive repeated reconstitutions rather than rely on the novelty of its first lineup.

Frequently Asked Questions

Is AIMG a leveraged ETF?

No. AIMG seeks to track its underlying index rather than multiply daily returns. Its prospectus permits options and swaps to obtain index exposure and manage fund structure, which differs from a leveraged ETF mandate.

Can AIMG hold more than 10 positions?

Yes. The index contains 10 companies, while the fund may also use options, swaps and related assets to obtain exposure. Its reported portfolio can therefore include more line items than the benchmark.

Does AIMG invest only in U.S. companies?

No. The disclosed eligible universe includes companies from the United States, South Korea and Taiwan. Foreign holdings broaden the underlying business mix while adding market, currency, regulatory and geopolitical risks beyond a U.S.-only portfolio.

Can newly listed AI companies enter AIMG?

Yes. Newly listed companies with more than 50% exposure to qualifying AI verticals can enter the eligible universe. Inclusion still depends on the index’s ranking and constituent-selection rules, not listing status alone.

The Real Test Is What AIMG Selects Next

AIMG’s long-term distinction will depend on how its 10-stock lineup changes through future quarterly reconstitutions. If the methodology continues selecting companies across different parts of the AI infrastructure chain, the fund can remain meaningfully different from traditional Magnificent Seven and semiconductor ETFs. Rising overlap would narrow that distinction.

The clearest test of AIMG is not its first 10 names, but what its rules keep selecting.