The Defiance Quantum ETF offers diversified exposure to quantum computing and AI, earning a Strong Buy rating for growth investors. QTUM has delivered a 44% total return since late 2024, with recent fund performance and net inflows reflecting surging interest in AI and quantum technologies. Only about one-third of QTUM's holdings are pure quantum computing stocks, while the rest are AI/ML leaders, balancing risk and growth potential.
QTUM offers low-cost, equal-weighted exposure to quantum computing and machine learning companies, minimizing concentration risk and appealing to tech-focused investors. The ETF tracks the BlueStar Machine Learning and Quantum Computing Index, ensuring a diversified portfolio of companies with significant revenue from quantum and AI sectors. Defiance Quantum ETF has outperformed peers like ARKK, but investors should recognize the long-duration, high-risk nature of quantum computing investments, as commercial viability is years away.
Quantum computing is still early-stage; real-world applications and winners are unclear, making stock picking risky after recent price surges. Defiance Quantum ETF offers diversified exposure to quantum and AI tech, balancing risk and potential upside better than individual quantum stocks. Compared to QQQ, QTUM captures quantum-driven alpha while maintaining broad tech exposure, making it a compelling portfolio addition.
| NASDAQ (NMS) Exchange | US Country |
The fund is designed for investors looking to capitalize on the advancements in quantum computing and machine learning technologies. By adopting a passive management strategy, the fund aims to mirror the performance of its underlying index before the deduction of fees and expenses. This index is uniquely composed, featuring a modified equal-weighting of stocks from companies that generate a minimum of 50% of their revenue or operational activities from quantum computing and machine learning advancements. This focus ensures investors are directly exposed to the growth potential within these cutting-edge technology sectors.
The fund offers investment opportunities primarily through the following products and services: