Mid-Cap ETF XMMO Up 12% YTD as AI Infrastructure Plays Outpace Nvidia

XMMO's outperformance reflects a structural shift in how investors are accessing AI growth beyond the familiar mega-cap chip designers. While Nvidia and other trillion-dollar technology companies dominate headlines, the real capital flow in AI infrastructure deployment benefits a wider ecosystem of mid-cap manufacturers and builders. The fund's holdings—companies supplying semiconductor equipment, data center construction, networking hardware, and advanced components—directly enable the physical infrastructure that hyperscalers are rapidly deploying.

What distinguishes XMMO from traditional mid-cap index funds is its momentum-based selection process. By holding only the approximately 80 companies exhibiting the strongest price momentum within the S&P MidCap 400, the fund naturally gravitates toward businesses with improving fundamentals and rising investor demand, while mechanically rotating out names as momentum weakens. This rules-based approach removes the need for investors to forecast which companies will emerge as winners; instead, the methodology adapts as leadership shifts across the AI ecosystem.

The portfolio's composition—40% industrials and 14% technology—underscores that AI infrastructure investment is not purely a semiconductor or tech story. Companies building physical data centers, electrical systems, and specialized manufacturing equipment benefit from the same wave of capital spending driving chip production. As hyperscalers and enterprises expand AI capabilities, investment flows increasingly toward the suppliers of equipment and infrastructure rather than concentrating solely on chip designers.