ETF Evaluator: Defiance LLM Catalyst Momentum ETF () Follow This ETF

Defiance LLM Catalyst Momentum ETF Overview

Defiance LLM Catalyst Momentum ETF (AIED) is an actively managed U.S. Equity Large Growth exchange-traded fund (ETF). Defiance ETFs LLC launched the ETF in 2019.

The investment seeks capital appreciation. The fund generally invests in securities of U.S.-listed large capitalization companies. The fund defines large capitalization companies as those that, at the time of investment, have a minimum market capitalization equal to or greater than the minimum market capitalization of a widely recognized index of large capitalization companies based upon the composition of the index at the time of investment (the “Universe”). It invests in equity securities of such companies, including common stock, American Depositary Receipts (“ADRs”), and Global Depositary Receipts (“GDRs”). The fund is non-diversified.

About Defiance LLM Catalyst Momentum ETF (AIED)

There are 4 members of the management team with an average tenure of 5.55 years: Andrew Serowik (2019), Gabriel Tan (2021), Todd Alberico (2021) and Brian Cooper (2022). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 1 primary benchmark: S&P 500 (TR) (1970) index with a weighting of 100%. Defiance LLM Catalyst Momentum ETF has 53 securities in its portfolio. The top 10 holdings constitute 39.8% 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 LLM Catalyst Momentum ETF is part of the Equity global asset class and is within the U.S. Equity ETF group. Defiance LLM Catalyst Momentum ETF has 1.1% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 98.5% There is 1.1% 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 LLM Catalyst Momentum ETF has 0.4% of the portfolio in cash.

Assets Under Management

The fund has $20 million in total assets, which is below the $7 billion average for the Large Growth 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.

AIED 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 LLM Catalyst Momentum ETF expense ratio is above average compared to funds in the Large Growth category. Defiance LLM Catalyst Momentum ETF has an expense ratio of 0.75%, which is 50% higher than its category average, making the fund expense ratio grade a D. 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 LLM Catalyst Momentum ETF has a portfolio turnover rate of 213%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 74% for the Large Growth category.

Recently, in the month of October 2026, Defiance LLM Catalyst Momentum ETF returned -10.7%, which earned it a grade of F, as the Large Growth category had an average return of -5.0%. 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 LLM Catalyst Momentum ETF has a trailing yield of 0.00%, which is below the 0.43% category average. The fund normally distributes its income quarterly.

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.

Defiance LLM Catalyst Momentum ETF Grades

Year to date, the ETF has returned 12.0%, 6.8 percentage points better than the category, which translates into a grade of A. The fund has returned 7.8% over the past year (grade of B), 23.6% over the past three years (grade of C) and 8.3% per year over the past five years (grade of C).

For more ETF grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.

Otherwise, for more information about Defiance LLM Catalyst Momentum ETF, including its riskiness, submit your email to unlock the rest of the article.