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Taking A Leap: Quantum Computing Arrives In ETF Form

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Taking A Leap: Quantum Computing Arrives In ETF Form

On the surface, quantum computing may appear to be a universe reserved for the most sophisticated of technological masters, but the space is becoming increasingly accessible for investors.

The newly minted Defiance Quantum ETF (NYSE: QTUM), which debuted Wednesday, brings the quantum computing theme to mainstream investing.

What Happened

QTUM is the second ETF from Defiance ETFs. Last month, the firm introduced the Defiance Future Tech ETF (NYSE: AUGR), an exchange-traded fund dedicated to the to the augmented and virtual reality investment themes.

Like its stablemate AUGR, the Defiance Quantum ETF targets an index from BlueStar Indexes. The new quantum computing ETF follows the BlueStar Quantum Computing and Machine Learning Index.

“Quantum computing may sound like something from the distant future, but leading technology companies, startups and research universities are already developing and implementing these approaches to solve practical problems and build competitive advantages,” said Defiance CEO Matthew Bielski in a statement.

Why It's Important

The new QTUM is a global fund, featuring exposure to nine countries, seven of which are classified as developed markets. The U.S. accounts for nearly three-quarters of QTUM's geographic exposure.

QTUM features exposure to six industry groups: quantum computing technology, machine learning semiconductors, artificial intelligence chips and technology, graphic processing, big data and cloud computing and solid state drive makers.

“It’s hard to overestimate the potential impact of these technologies,” according to Defiance. “While virtually every industry could benefit, key applications include aerospace and defense, autonomous vehicles, cyber security, drug discovery, energy and finance.”

None of QTUM's holdings exceed weights of 2.38 percent. Familiar names in the new ETF's top 10 holdings include Alphabet Inc. (NASDAQ: GOOG), International Business Machines (NYSE: IBM) and Intel Corp. (NASDAQ: INTC).

What's Next

Data support the notion that long-term growth trends for the quantum computing market are favorable. That market is expected to have a compound annual growth rate of 24.6 percent from this year through 2024.

QTUM charges 0.65 percent per year, or $65 on a $10,000 investment.

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Posted-In: Matthew BielskiLong Ideas News Sector ETFs New ETFs Top Stories Trading Ideas ETFs Best of Benzinga

 

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