Defiance ETFs launched its second ETF to help investors access cutting edge technologies that are improving computing speeds and solving increasingly complex problems.
On Wednesday, Defiance launched the Defiance Quantum ETF (NYSEArca: QTUM), which has a 0.65% expense ratio.
“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,” Matthew Bielski, founder and CEO of Defiance ETFs, said in a note. “With QTUM, investors don’t need to wait on the sidelines. We’ve already seen demand from registered investment advisers (RIAs), family offices and ETF strategists interested in gaining targeted exposure to this technology via a liquid, transparent ETF.”
The Defiance Quantum ETF tries to reflect the performance of the BlueStar Quantum Computing and Machine Learning Index, which is comprised of companies tied to the development of quantum computing and machine learning technology.
QTUM can provide exposure to companies engaged in the research and development or commercialization of systems and materials used in quantum computing: 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, according to Defiance.
What is Quantum Computing?
Quantum computing refers to hardware and software designed to take advantage of fast computers that leverage the field of quantum mechanics, a branch of physics dealing with particles and the complexities in which they naturally behave. Quantum computing accelerates the computing process and expands the range of possibility in machine learning, artificial intelligence and other applications.
For example, Google and NASA said a quantum computer they piloted together processes algorithms 100 million times faster than a traditional computer chip. Other key applications are being built in finance, cybersecurity, drug discovery, energy and autonomous vehicles.
“This technology represents a massive leap forward for the world of computing—it’s comparable to the shift from valve computing to silicon chips. Companies are already applying it and will continue to apply it in myriad ways, from optimizing investment portfolios to debugging software and finding wholly new drugs,” Defiance ETF Director of Research Tom Bowles said in a note.
QTUM subsector weights include quantum computing technology 20.3%, machine learning semiconductors 18.6%, A.I. chips & technology 15.3%, graphic processing units & other hardware 13.6%, big data & cloud computing 11.9% and solid state drive technology 10.2%.
Country weights include U.S. 74.6%, Japan 8.5%, Germany 3.4%, Canada 3.4%, UK 3.4%, Taiwan 1.7%, South Korea 1.7%, Netherlands 1.7% and Norway 1.7%.
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