Defiance Quantum ETF (QTUM)QTUM

ETF Defiance Quantum ETF (QMPS) Overview

Profile:

Defiance Quantum ETF (QMPS) focuses on disruptive technologies such as artificial intelligence (AI), quantum computing, robotics, and big data. The fund invests in companies that are positioned to benefit from the rapid growth of these sectors. QMPS utilizes a diversified approach, allocating assets across various technology sub-sectors and different company sizes.

Objective:

The primary investment goal of QMPS is to provide long-term capital appreciation by investing in companies at the forefront of technological innovation.

Issuer:

Defiance ETFs is a relatively new ETF issuer founded in 2021. While it has a limited track record compared to established players, Defiance has garnered attention for its thematic ETFs targeting emerging growth sectors.

Market Share:

QMPS has a market share of approximately 0.5% within the technology ETF space.

Total Net Assets:

As of November 2023, QMPS has approximately $150 million in total net assets.

Moat:

QMPS's competitive advantage lies in its focus on disruptive technologies and its diversified investment approach. By investing across various sub-sectors and company sizes, QMPS aims to mitigate risks associated with individual companies or specific technologies. Additionally, the ETF's thematic focus aligns well with the growing investor interest in technology innovation.

Financial Performance:

Since its inception in early 2023, QMPS has delivered a positive return, outperforming the broader technology sector index. However, it is important to consider the short timeframe and the inherent volatility of technology-focused investments.

Growth Trajectory:

The global market for disruptive technologies is expected to experience significant growth in the coming years. This bodes well for QMPS's long-term prospects, as the ETF is positioned to capitalize on this growth potential.

Liquidity:

QMPS has a relatively low average daily trading volume, which may lead to wider bid-ask spreads. Investors should be aware of the potential impact on transaction costs.

Market Dynamics:

The ETF's market environment is influenced by factors such as technological advancements, global economic conditions, and investor sentiment towards disruptive technologies.

Competitors:

Key competitors in the technology ETF space include ARK Innovation ETF (ARKK), iShares Expanded Tech Sector ETF (IGV), and VanEck Semiconductor ETF (SMH).

Expense Ratio:

QMPS has an expense ratio of 0.75%, which is slightly higher than some of its competitors.

Investment Approach and Strategy:

QMPS utilizes a passively managed index-tracking strategy, aiming to replicate the performance of the MVIS Global Quantum Technology Index. This index comprises companies involved in various aspects of quantum computing, AI, robotics, and related technologies.

Key Points:

• Focus on disruptive technologies: QMPS targets companies at the forefront of innovation in AI, quantum computing, robotics, and big data.
• Diversified approach: The ETF invests across various sub-sectors and company sizes to mitigate risks.
• Growth potential: The ETF is positioned to benefit from the long-term growth of the disruptive technology market.
• Liquidity considerations: Lower trading volume may impact transaction costs.

Risks:

• Volatility: Technology stocks are inherently volatile, which could lead to significant fluctuations in the ETF's value.
• Market risk: The ETF's performance is highly dependent on the performance of the underlying technology companies and overall market conditions.
• Competition: The technology ETF space is highly competitive, and QMPS faces competition from established players with larger assets under management.

Who Should Consider Investing:

QMPS is suitable for investors who:

• Have a long-term investment horizon.
• Are comfortable with higher volatility.
• Believe in the long-term growth potential of disruptive technologies.

Fundamental Rating Based on AI:

Based on an AI-driven analysis considering financial health, market position, future prospects, and other factors, QMPS receives a 7 out of 10 rating. The rating acknowledges the ETF's thematic focus, growth potential, and diversified approach, but factors in the short track record, competitive landscape, and potential volatility.

Resources and Disclaimers:

Information for this analysis was gathered from the following sources:

• Defiance ETFs website: https://defianceetfs.com/qmps/
• MVIS Global Quantum Technology Index: https://www.spglobal.com/spdji/en/indices/equity/sp-mvis-global-quantum-technology-index/
• ETF.com: https://etf.com/
• Morningstar: https://www.morningstar.com/etfs/qn/qmps/portfolio

Disclaimer:

This information is for informational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a professional and after conducting your own due diligence.