Defiance ETFs

CEO Sylvia Jablonski oversees strategic direction and product development, while President Matt Darnall manages day-to-day operations. Portfolio management decisions are made by a research-led team that evaluates thematic trends and adjusts fund holdings accordingly.

Defiance ETFs primarily markets its products to retail investors through broker-dealers and platforms, though its ETFs are also available to institutions. The firm’s AUM of roughly $700 million (per Bloomberg, 2022) suggests a retail-heavy investor base.

The firm targets disruptive technologies including artificial intelligence, machine learning, quantum computing, fintech, digital health, and climate technology. Each ETF is concentrated on a specific theme rather than tracking a broad index.

The firm uses a top-down thematic research process to identify secular trends, then selects stocks based on revenue exposure to the theme, growth metrics, and market capitalization. Holdings are actively managed and can rotate as themes evolve.

Defiance ETFs competes with larger thematic issuers like ARK Invest and Global X by offering concentrated, actively managed funds in niche sectors. Its smaller AUM relative to competitors limits its ability to undercut fees, but it targets high-conviction investors seeking pure-play exposure.

While most holdings are US equities, some funds include international positions in developed markets like Europe and Asia, particularly in the technology and healthcare sectors. The firm does not maintain dedicated international funds.

Thematic ETFs are typically more volatile than broad-market funds due to concentration risk. The firm’s active management introduces manager selection risk, and its smaller size may lead to less liquidity in underlying holdings during market stress.