The XIGV ETF is a passive product that aims to track the returns of the Indxx US 100 Tech Focused ex-Software Technology Index. The index rules exclude software-centered businesses and focus on other segments of technology-based industries.

It suits investors who want to reduce exposure to software-centered companies while taking a long-term view of technology industry trends built around semiconductors, hardware, and connectivity infrastructure.

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

The index starts with non-financial companies listed on the Nasdaq and excludes those that derive a high share of revenue from software-centered activities. As a result, the portfolio may respond more sensitively to movements in technology-based areas such as semiconductors, hardware, and connectivity infrastructure.

• Index design that applies a software exclusion rule
• Technology exposure centered on semiconductors, hardware, and connectivity infrastructure

Assets under management (AUM) stand at $0.2M, and the total expense ratio is 0.65% per year.

For a product with a limited track record, it is worth checking whether trading volume and bid-ask spreads are stable. The expense level can be confirmed from the automatically displayed figures, while actual trading conditions are best checked separately on your brokerage screen.

Because the product has a limited track record, investors should not draw conclusions about its long-term characteristics from past performance alone. They should also consider volatility driven by shifts in demand for semiconductors and hardware and by the technology investment environment. How the index inclusion criteria are maintained also needs ongoing monitoring.

The publicly available data make it difficult to fully verify long-term fund flows. Rather than reading fund flows as a single signal, it is better to review trading conditions, premiums and discounts to net asset value, and changes in risk appetite across the technology sector together.

The software exclusion rule is clear, but the product may be sensitive to volatility in the technology sector and in specific sub-segments.

Because no peer product information or additional alternative tickers were provided for a comparison table, this article does not offer a direct side-by-side comparison of individual ETFs. Instead, when comparing, investors should check together whether the software exclusion criteria are the same, how semiconductor and hardware exposure within the technology sector differs, and whether the index rules, expense levels, and trading conditions fit their investment goals. Once data on similar products becomes available, a direct comparison will be possible.

Before investing, first confirm whether the software-exclusion design fits your own outlook for the technology sector. Reviewing the index criteria, trading conditions, costs, currency exposure, and sector concentration risk together can reduce the chance of leaning on a single-theme interpretation.

Excluding software does not eliminate technology sector risk. Volatility may expand depending on semiconductor demand, supply chains, the competitive landscape, regulation, and geopolitical variables, and investors should also consider that the range of diversification may differ from their expectations.

The XIGV ETF is a passive product worth considering for investors who want exposure to technology-based industries excluding software-centered businesses. However, it is advisable to confirm its track record, index criteria, trading environment, and sector concentration risk before deciding what role it should play within your overall asset allocation.