Defiance Quantum ETF

QTUM

Market cap $2.56B

Defiance Quantum ETF offers exposure to quantum computing but is diversified with mainstream tech stocks like MSFT, GOOG, and NVDA. QTUM's 75% one-year gain was driven by both quantum pure plays (QBTS, RGTI, QUBT, IONQ) and established tech companies. The ETF's semi-annual rebalancing helps lock in gains from speculative rallies and reduces downside risk compared to pure-play quantum stocks.

Pure-play quantum computing stocks like IonQ, D-Wave Quantum, Quantum Computing, and Rigetti Computing are massively overvalued, with hype-driven valuations far exceeding fundamentals. Current revenues are minimal, losses are huge, and dilution risk is high, making these stocks more speculative bets than sound investments. Momentum and hype may drive further rallies, but once sentiment shifts, these names could become prime short opportunities for traders.

The quantum computing industry is among the fastest growing corners of the tech space—analysts at McKinsey predict it could skyrocket from $4 billion in revenue in 2024 to up to $72 billion in 2035. With a growing field of competitors specializing in developing quantum tech that are becoming increasingly competitive with legacy tech firms expanding into the space, investors have the difficult job of assessing which quantum stocks may be most likely to thrive in the coming years.

QTUM just hit a 52-week high and investor interest in frontier computing has never been higher, but that means that risks have also never been higher. My previous issues with QTUM have not changed, since they had little to do with the fund's returns, and a lot to do with the fund's index inclusions. However, investors who do not share my view may have a very favorable view of QTUM. It is a decent way to gain exposure to quantum computing, machine learning, AI.

MIAMI, Sept. 02, 2025 (GLOBE NEWSWIRE) -- Defiance ETFs, a pioneer in thematic investing, announced that its QTUM – Defiance Quantum Computing ETF – has surpassed $2 billion in assets under management (AUM).

CNBC's Frank Holland speaks with about Sylvia Jablonski, CEO & CIO Defiance ETFs about the action in ETFs this week.

Keeping up with the latest tech trends can be challenging, but doing so can allow you to rake in significant returns in the long run. The problem, however, is that even if you find the next big area of tech to focus on, you also have to decide which stock to buy, since not every business involved is going to be a winner.

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.

Markets hit new record with bets on a "Goldilocks" economy, but volatility persists. AI and international ETFs like QQQ, IVES and EZU could be good bets for 2H.

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.