ETF Evaluator: Defiance AI Hyperscale Leaders ETF (AIHY) Follow This ETF

Defiance AI Hyperscale Leaders ETF Overview

Defiance AI Hyperscale Leaders ETF (AIHY) is an actively managed Sector Equity Technology exchange-traded fund (ETF). Defiance ETFs LLC launched the ETF in 2026.

The investment seeks long term capital appreciation. The fund is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by primarily investing (directly or indirectly) in U.S.-listed equity securities of companies that the Adviser believes are leaders in enabling, developing, or benefiting from the hyper-scaling of artificial intelligence (“AI”) computing infrastructure to efficiently train, deploy, and run complex AI models by demonstrating strong scalability, positive revenue growth and profitability. It is non-diversified.

About Defiance AI Hyperscale Leaders ETF (AIHY)

There are 2 members of the management team with an average tenure of 0.03 years: Qiao Duan (2026) and Stephen Foy (2026). Management tenure is more important for actively managed ETFs than passive index ETFs.

Defiance AI Hyperscale Leaders ETF has 10 securities in its portfolio. The top 10 holdings constitute 100.0% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Defiance AI Hyperscale Leaders ETF is part of the Equity global asset class and is within the Sector Equity ETF group. Defiance AI Hyperscale Leaders ETF has 6.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 93.9% There is 6.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Defiance AI Hyperscale Leaders ETF has 0.1% of the portfolio in cash.

Assets Under Management

The fund has $506 million in total assets, which is below the $3 billion average for the Technology category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

AIHY Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Defiance AI Hyperscale Leaders ETF expense ratio is above average compared to funds in the Technology category. Defiance AI Hyperscale Leaders ETF has an expense ratio of 0.76%, which is 41% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Defiance AI Hyperscale Leaders ETF has a portfolio turnover rate of 0%, which indicates that it holds its assets around /years. By way of comparison, the average portfolio turnover is 39% for the Technology category.

Recently, in the month of July 2026, Defiance AI Hyperscale Leaders ETF returned 0.0%, which earned it a grade of NA, as the Technology category had an average return of -9.8%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Defiance AI Hyperscale Leaders ETF has a trailing yield of 0.00%, which is below the 0.45% category average. The fund normally distributes its income annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

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