Defiance Quantum ETF

QTUM

Market cap $2.98B

In a recent interview, Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) CEO Sundar Pichai dropped one of the most quietly explosive comments of the year — and it wasn't about AI. Speaking on BBC Newsnight, Pichai said the company's quantum program is reaching a tipping point, remarking: "I would say quantum is there where maybe AI was 5 years ago.

Quantum computing is advancing faster than expected, and big tech is pouring billions into it. If quantum becomes the next major tech theme, early investors could benefit the most.

This fund is the seasoned veteran in the quantum computing ETF space. It does an admirable job of spreading bets across pure-play quantum stocks and broader technology companies.

Thematic ETFs tied to trends like artificial intelligence and quantum computing have drawn billions in new money into the market, and the portfolios have been rewarding investors with big gains. But ETF Action's Mike Akins warns that investors need to be mindful of significant risks within these newer portfolio categories, such as similarly branded AI funds, where performance differs by as much as 60% this year.

The quantum computing hype train has hit turbulence. While most quantum ETFs are on the downhill ride, one ETF is cashing in on the chaos and another is staying resilient.

The Defiance Quantum ETF gives investors exposure to nearly 80 quantum computing stocks. It has a 0.40% expense ratio, low for a specialized ETF like this.

MIAMI, Oct. 27, 2025 (GLOBE NEWSWIRE) -- Defiance ETFs, a pioneer in thematic investing, today announced that its  Defiance Quantum Computing ETF (QTUM) has surpassed $3 billion in assets under management (AUM), underscoring the accelerating investor focus on quantum computing and AI-related technologies. With a 5-star Overall Morningstar Rating™, QTUM stands out as one of the top-performing funds in the technology category.

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.

The fund has surged 38% year to date as quantum computing breakthroughs capture investor attention, but extreme valuations among pure-play stocks suggest caution is warranted. Broad diversification across 80 holdings includes established technology giants generating positive free cash flow alongside speculative quantum startups, reducing concentration risk.

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.