NIXT ETF — Holdings & Analysis

For informational purposes only. Not financial advice.

Quick Answer

small- and mid-cap stocks by tracking an index of these companies screened for quality. The fund's unique strategy focuses on companies that have fallen out of benchmark indices, potentially offering a contrarian investment approach.

Research Affiliates Deletions ETF (NIXT) ETF — Price, Holdings & Analysis

The Research Affiliates Deletions ETF (NIXT) is a small-cap equity ETF with $0.03 billion in assets under management and an expense ratio of 0.09%. NIXT aims to capture potential long-term performance reversals in recently deleted U.S. small- and mid-cap stocks by tracking an index of these companies screened for quality. The fund's unique strategy focuses on companies that have fallen out of benchmark indices, potentially offering a contrarian investment approach.

ETF Overview

NIXT tracks an index of recently deleted US small- and mid-cap stocks screened for quality. The portfolio aims to benefit from a potential long-term reversal in the performance of these deleted stocks. The index is constructed from a pool of the top 1000 and top 500 US companies in the RAFI Global Equity Investable Universe (GEIU), which are maintained in two benchmark indices, the Cap-Weight 500 and Cap-Weight 1000. Using a five-year look-back period, the smallest stocks or those that have fallen out of the benchmark indices are identified, scored, and ranked for quality using the following metrics: debt coverage ratio, equity issuance, debt issuance, change in leverage, total payout, and net payout. The top 80% are added to the index and are equally weighted. Companies in the index have a 5-year holding period and are removed if their market cap has risen enough to re-qualify for the benchmark indexes. The index is reconstituted annually in April and rebalanced in May.

NIXT seeks to track the performance of an index composed of recently deleted U.S. small- and mid-cap stocks that have been screened for quality. The fund selects from the top 1000 and top 500 U.S. companies in the RAFI Global Equity Investable Universe (GEIU), identifying stocks that have fallen out of the benchmark indices over a five-year period. These stocks are then scored and ranked based on quality metrics such as debt coverage ratio, equity issuance, and changes in leverage. The top 80% of these companies are included in the index and equally weighted. The fund's top holdings include Lumentum Holdings Inc (6.22%), Arrowhead Pharmaceuticals Inc (2.37%), and Semtech Corp (1.49%). NIXT is designed for investors seeking exposure to potentially undervalued companies that may experience a performance rebound after being removed from major indices. Companies in the index have a 5-year holding period and are removed if their market cap has risen enough to re-qualify for the benchmark indexes. The index is reconstituted annually in April and rebalanced in May.

Risk Metrics

NIXT carries concentration risk due to its small number of holdings; its top holding, Lumentum Holdings Inc, constitutes 6.22% of the portfolio. The fund's focus on recently deleted stocks introduces the risk that these companies may continue to underperform. With a beta of 0.00, NIXT has demonstrated very low volatility relative to the broader market, but this may not persist in the future. The fund's expense ratio of 0.09% will create a slight drag on performance over time, though it is relatively low compared to other specialized equity ETFs. As a small fund with $0.03B in AUM, NIXT may be subject to higher trading costs and potential liquidity issues.

Expense Ratio

0.09%

What does NIXT hold?

Holding	Weight
Lumentum Holdings Inc (LITE)	6.22%
Arrowhead Pharmaceuticals Inc (ARWR)	2.37%
Semtech Corp (SMTC)	1.49%
Herbalife Ltd (HLF)	1.42%
Weatherford International PLC Ordinary Shares - New (WFRD)	1.33%
Kohl's Corp (KSS)	1.28%
MP Materials Corp Ordinary Shares - Class A (MP)	1.24%
IPG Photonics Corp (IPGP)	1.15%
C.H. Robinson Worldwide Inc (CHRW)	1.09%
PBF Energy Inc Class A (PBF)	1.08%

Dividend Yield

0.00%

iShares Russell 2000 ETF (IWM) — 0.19% expense ratio
ARK Innovation ETF (ARKK) — 0.75% expense ratio
State Street Technology Select Sector SPDR ETF (XLK) — 0.08% expense ratio
Invesco QQQ Trust, Series 1 (QQQ) — 0.18% expense ratio
iShares MSCI Emerging Markets ETF (EEM) — 0.72% expense ratio
iShares MSCI EAFE ETF (EFA) — 0.32% expense ratio
State Street Energy Select Sector SPDR ETF (XLE) — 0.08% expense ratio
State Street SPDR S&P 500 ETF (SPY) — 0.09% expense ratio

Risk Metrics

Beta: 0.00

Questions & Answers

What is NIXT and what does it track?

The Research Affiliates Deletions ETF (NIXT) is an equity ETF that focuses on U.S. small- and mid-cap stocks. Specifically, NIXT tracks an index of recently deleted stocks from major U.S.

indices, screening them for quality based on factors like debt coverage and equity issuance.

What is the expense ratio for NIXT?

NIXT has an expense ratio of 0.09%. This means that for every $10,000 invested in the fund, $9 is used to cover annual operating expenses.

While there isn't a definitive category average for ETFs focusing on deleted stocks, NIXT's expense ratio is relatively low compared to the broader equity ETF landscape, making it a cost-effective option for investors seeking this specific investment strategy.

What are the top holdings in NIXT?

As of 2026-03-15, the top holdings in NIXT are Lumentum Holdings Inc (6.22%), Arrowhead Pharmaceuticals Inc (2.37%), and Semtech Corp (1.49%). Other notable holdings include Herbalife Ltd (1.42%) and Weatherford International PLC Ordinary Shares - New (1.33%).

These holdings represent a diverse range of companies that have recently been removed from major U.S. indices and meet the fund's quality screening criteria.

Is NIXT a good long-term investment?

NIXT's suitability as a long-term investment depends on an investor's individual risk tolerance and investment goals. The fund's strategy of targeting recently deleted stocks carries inherent risks and potential rewards.

With AUM of $0.03B and a focused investment approach, NIXT may experience higher volatility than more broadly diversified equity ETFs. Past performance does not guarantee future results, and investors should carefully consider NIXT's unique strategy before investing.

How does NIXT compare to similar ETFs?

NIXT differentiates itself through its unique focus on companies recently deleted from major U.S. indices. While other small-cap value ETFs exist, NIXT's strategy is more targeted. The fund's expense ratio of 0.09% is competitive.

However, its small AUM of $0.03B may make it less liquid than larger, more established ETFs in the small-cap space. Investors should weigh these factors when comparing NIXT to other options.

Does NIXT pay dividends?

As of 2026-03-15, NIXT has a dividend yield of 0.00%. This indicates that the fund currently does not distribute any dividend income to its shareholders.

Investors seeking dividend income may want to consider other equity ETFs with a history of dividend payouts.

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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