Disruption like artificial intelligence and robotics are in the forefront of technological advances, but other areas like quantum computing are powering the next generation of ETFs like the Defiance Quantum ETF (NYSEArca: QTUM).
Defiance ETFs notes multiple breakthroughs in the field of quantum computing.
“We have seen increased institutional interest in QTUM, given the recent announcement of Google reaching quantum supremacy,” says Chief Executive Officer Matthew Bielski.
QTUM tracks a rules-based index, known as the BlueStar Quantum Computing and Machine Learning Index, that gives investors exposure to the next generation of computing, including disruptive companies building out quantum computing and machine learning technology. The index is comprised of equity securities of leading global companies engaged in the research and development or commercialization of systems and materials used in quantum computing.
Areas within quantum computing include advanced traditional computing hardware, high powered computing data connectivity solutions and cooling systems, and companies that specialize in the perception, collection and management of heterogeneous big data used in machine learning. Additionally, iIndex components are assigned an equal weight subject to a liquidity overlay, index components are reviewed semi-annually for eligibility, and the weights are reset accordingly.
QTUM is part of an ETF family that also includes FIVG, the First 5G ETF; and DIET, focused on next gen food and sustainability.
- Quantum computers use principles of quantum mechanics to perform significantly more complex computations, and at exponentially faster speeds, than conventional computers.
- Quantum Computing is set to fundamentally enhance Machine Learning, a subset of artificial intelligence, which gives computers the ability to “learn” with data, without being explicitly programmed.
Benefits of QTUM:
- QTUM offers investors liquid, transparent and low-cost* access to companies developing and applying Quantum Computing and other transformative computing technologies.
- The underlying index, BlueStar Quantum Computing and Machine Learning Index (BQTUM), tracks approximately 60 globally-listed stocks across all market capitalizations.
- Equal weight methodology offers investors more precise exposure, including to smaller companies with more potential for growth.
In the business world, it’s adapt or die and the wave of disruption occurring in all sectors is weeding out companies that will be slow or resistant to innovation. This presents an opportunity for the discerning investor by capitalizing on companies that can’t keep up with the changing times.
Disruption isn’t relegated to startup companies taking an idea and simply building its core business model around it. It also affects existing companies whose outdated business models can no longer stem the tide of disruptive forces on revenue generation.
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