This product tracks the Indxx US Back Tech AI Moat Index and uses a rules-based approach to select companies that may keep their competitive edge even as AI spreads.

It suits investors who are interested in the AI theme, want to understand the index's selection criteria rather than simply buy a basket of tech stocks, and can tolerate long-term volatility.

It is a passive (index-tracking) ETF managed by Defiance ETFs.

This product tracks an index that starts from non-financial stocks listed on the Nasdaq. The index selectively excludes areas of enterprise software and digital services that it judges could be replaced by AI, and it determines its constituents by evaluating proprietary data, technological capabilities, and how AI is used within each business.

• A selection structure that considers both AI beneficiary potential and defensibility
• Criteria that exclude some digital businesses that may be vulnerable to AI

Assets under management (AUM) stand at $0.5M, and the expense ratio is 0.65% per year.

Liquidity and fee levels may vary with trading conditions, so it is advisable to check bid-ask quotes and cost information separately before trading.

In an environment where expectations for AI infrastructure and business applications influence the valuation of tech stocks broadly, the fund may move in step with related stocks. On the other hand, if the actual pace of AI monetization or corporate investment plans change, the group of stocks reflected by the index's selection criteria may also show volatility.

Fund flows into thematic ETFs can be affected by demand for AI investment and shifts in risk appetite toward tech stocks. When market participants weigh cost burdens or intensifying competition more heavily than growth expectations, inflows and outflows across the related theme can become unstable, so it is difficult to judge the suitability of the strategy from short-term fund flows alone.

An index approach focused on AI competitiveness is a strength, but investors should also review the selection criteria and the volatility that comes with changes in the tech environment.

Because the comparison fund data provided is limited, this article does not propose any specific exchange-traded fund ticker as an alternative. This product can best be understood as a selective exposure that evaluates AI beneficiary potential and replacement risk together. When comparing, it is appropriate to check whether the tracked index's stock selection criteria, the scope of its enterprise software exclusions, and its fees and trading conditions fit your own investment goals.

Before making an investment decision, it is more important to check which businesses the index's selection rules include and which areas they leave out than to focus on the AI theme itself. Investors should also note the lack of distribution history and the fact that information on individual holdings was not provided.

The share prices and business outlooks of AI-related companies can be sensitive to technological change, the competitive landscape, and the direction of capital spending. The index's selection criteria may not work as expected, and judgments about replacement risk in specific industries may change, so investors should consider whether they can tolerate the volatility of thematic exposure.

The Defiance US Back Tech AI Moat ETF follows index rules that weigh both AI beneficiary potential and competitive defensibility. Given the lack of distribution history, the limited holdings information, and the volatility of the theme, it is advisable to check the costs and index methodology and then judge whether the fund fits your investment goals.