"Quantum computing may sound like something from the distant future, but leading technology companies, start-ups and research universities are already developing and implementing these approaches to solve practical problems and build competitive advantages", stated Matthew Bielski, founder and CEO of Defiance ETFs. "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."
Quantum computing accelerates the entire computing process and expands the range of what's possible in machine learning, artificial intelligence (AI) and other applications. For instance, Google and NASA have reported that a quantum computer they piloted together processes algorithms 100 million times faster than a traditional computer chip.
The field has attracted billions of dollars in investment and funding. While nearly every industry has the potential to benefit from the growth of this technology, key applications are being built in finance, cybersecurity, drug discovery, energy and autonomous vehicles. There's even the potential for quantum computing to help predict weather disasters.
Defiance ETF Director of Research Tom Bowles, an AI pioneer and serial entrepreneur who has helped found dozens of technology companies, stated: "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."
"Quantum computing also has the potential to make cryptography, and the technology that relies on it, obsolete. The possibilities are endless, and public and private organizations have already demonstrated that theyre deeply interested in putting the technology to good use", he added.
QTUM offers a liquid and transparent way to invest in organisations developing and applying machine learning and quantum computing technology including hardware companies, software makers and defense and security firms.
The underlying index, the BlueStar Quantum Computing and Machine Learning Index (BQTUM), is global and diversified with approximately 60 stocks across all market capitalizations. Current country allocations include the United States, Japan, Korea, and China. The index is equal weighted, offering investors more targeted exposure, including to smaller companies with higher growth potential.
QTUM is the second ETF from Defiance ETFs, which specializes in portfolios that highlight disruptive technologies. The company's first ETF, AUGR, which focuses on Augmented and Virtual Reality, launched in August.
"We strongly believe that all investors should have the ability to access the most transformative and disruptive technologies of our time", Matthew Bielski stated. "We started Defiance to offer those opportunities, and provide investors with precise exposures to emerging technologies that complement the existing tech in their portfolios."