In This Article:
The quantum computing sector has been on fire in recent months, fueled by a game-changing breakthrough from tech titan Google (NASDAQ:GOOGL) with its revolutionary Willow chip. Some stocks in the space, like IONQ Inc (NYSE:IONQ), Rigetti Computing Inc . (NASDAQ:RGTI) and D Wave Quantum (NASDAQ:QMCO) Inc (NYSE:QBTS), have skyrocketed 4-10x in a short span, drawing massive investor interest. However, the sector’s meteoric rise has also sparked volatility, with industry heavyweights like NVIDIA (NASDAQ:NVDA) raising questions about the timeline for real-world commercial success. Amid the buzz, Sylvia Jablonski, CEO of Defiance ETFs—which manages the $1 billion NAV Defiance Quantum ETF (NASDAQ:QTUM)—joins Investing.com to discuss the opportunities and challenges shaping this rapidly evolving frontier.
1 . Can you explain quantum computing and the investment opportunities in the sector?
Sylvia: Quantum computing is one of the most disruptive and potentially revolutionary developments of our time. It defines the 4th Industrial Revolution. With the potential to disrupt industries ranging from pharmaceuticals to finance. Unlike classical computers that use binary bits (0s and 1s), quantum computers use qubits, which can exist in multiple states simultaneously and solve problems that are practically impossible for classical computers.
From an investment perspective, this sector is still in its infancy but has immense long-term potential. Companies leading the charge include major tech players like Google, IBM (NYSE:IBM), and Microsoft (NASDAQ:MSFT), as well as specialized startups innovating in areas like quantum hardware, software, and cryptography. Think companies like Ionq, Dwave and Rigetti. Investing now is about getting in early on a revolutionary trend, though it requires a long-term horizon as the technology matures.
2. How does your ETF differ from other investments, including buying directly into companies in the sector?
Sylvia: Our ETF is designed to give investors diversified exposure to the quantum computing ecosystem without the need to pick individual winners. Instead of trying to identify which single company will dominate the space—a risky and speculative endeavor—our ETF spreads investment across a portfolio of companies leading in quantum innovation. This includes hardware developers, software pioneers, and adjacent industries like semiconductors and AI, which are integral to the growth of quantum computing. For example, when quantum stocks fell 30-40% a couple of weeks ago, our ETF was down low single digits and rebounded quickly as the ballast of the large cap, strong balance sheet firms, offset the risk of the smaller cap names that took the brunt of the news. On the other hand those small caps may rip and rally, have m&a activity in the future, and greatly add to the returns of the larger cap firms. It is great to have that diversity.