MIAMI - Defiance ETFs, an investment firm focusing on thematic and income ETFs, has announced that its Quantum (NASDAQ:QMCO) Computing ETF (NYSE:QTUM) has reached a milestone of $200M in assets under management.
Quantum computing has been identified as a transformative technology with the potential to revolutionize various industries by offering advanced data processing capabilities. The market for quantum computing reached over $10B in 2023 and is projected to grow at a compound annual growth rate of 36.89% until 2030.
The QTUM ETF provides investors with exposure to a range of companies involved in quantum computing, artificial intelligence, and machine learning. The fund currently holds 71 stocks from around the globe and tracks a rules-based index.
Sylvia Jablonski, CEO and Chief Investment Officer of Defiance ETFs, commented on the significance of quantum computing for the future of technology, emphasizing its role alongside AI and machine learning in signaling a major shift in technological capabilities.
Defiance ETFs, established in 2018, offers a suite of ETFs that focus on disruptive innovations, including artificial intelligence, machine learning, quantum computing, 5G, hydrogen energy, and electric vehicles.
Investors should note that the fund is not actively managed and is concentrated in a single industry, which may involve a higher degree of risk. The value of stocks in the information technology sector can be especially volatile, and the fund may invest a larger portion of its assets in fewer issuers, increasing the risk of loss.
The potential applications of quantum computing are still in the exploratory phase, and while the technology holds promise, the anticipated returns are uncertain and may not materialize in the near term.
This news is based on a press release statement from Defiance ETFs.
InvestingPro Insights
In light of the recent milestone achieved by Defiance ETFs' Quantum Computing ETF (NYSE:QTUM), real-time data from InvestingPro offers a deeper look into the fund's performance and potential. The ETF's market capitalization stands at a robust $208.2M, reflecting significant investor confidence. Despite concerns over weak gross profit margins, as highlighted by one of the InvestingPro Tips, QTUM's dividend yield is currently at 0.64%, with the last dividend having an ex-date of December 27, 2023. This could be an attractive point for income-focused investors.
Price movement data reveals that QTUM is trading near its 52-week high, at 99.78% of the peak, and has experienced a strong 22.3% return over the last three months. This performance is indicative of the ETF's growth trajectory and aligns with the broader interest in the quantum computing sector. Additionally, the fund has seen a commendable 28.51% one-year price total return, further cementing its appeal among investors looking for robust growth opportunities.
To gain a more comprehensive understanding of QTUM's potential, interested investors can explore additional insights. There are 5 more InvestingPro Tips available, which can be accessed through a subscription to InvestingPro. Currently, there is a special New Year sale with discounts of up to 50%. Moreover, using the coupon code SFY24 can get you an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 for an additional 10% off a 1-year subscription. These tips and data points could prove invaluable in making informed investment decisions regarding this promising sector.
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