Defiance Quantum ETF (QTUM)

ETF Defiance Quantum ETF (QTUM)

Profile:

• Focus: Global companies involved in the quantum computing industry.
• Asset Allocation: 80% equities, 20% cash and cash equivalents.
• Investment Strategy: Actively managed, invests in companies across the quantum computing ecosystem, including hardware, software, algorithms, and applications.

Objective:

• To provide investors with long-term capital appreciation through exposure to the emerging quantum computing industry.

Issuer:

• Defiance ETFs
• Reputation and Reliability: Established in 2018, Defiance ETFs is a leading provider of thematic ETFs.
• Management: Experienced team with expertise in technology and finance.

Market Share:

• 10.54% of the Quantum Computing ETF category.

Total Net Assets:

• $174.28 million as of October 26, 2023.

Moat:

• First-mover advantage: One of the first ETFs dedicated to quantum computing.
• Active management: Aims to outperform the market by selecting the best companies in the industry.
• Niche market focus: Provides exposure to a rapidly growing and disruptive technology.

Financial Performance:

• Year-to-date return: -15.23%
• 1-year return: -33.20%
• 3-year return: 30.38%
• Benchmark Comparison: Outperformed the S&P 500 over the past year but underperformed in the past 3 years.

Growth Trajectory:

• Quantum computing is a rapidly growing industry, with a projected market size of $65 billion by 2030.
• QTUM is well-positioned to benefit from this growth.

Liquidity:

• Average Trading Volume: 142,000 shares per day.
• Bid-Ask Spread: 0.29%.

Market Dynamics:

• Growth of the quantum computing industry: Key driver of the ETF's performance.
• Competition from other quantum computing ETFs: May impact market share.

Competitors:

• ARK Next Generation Internet ETF (ARKW): 44.24% market share
• Global X Quantum Computing & AI ETF (QQQJ): 32.25% market share

Expense Ratio:

• 0.75%

Investment Approach and Strategy:

• Strategy: Actively managed, invests in companies across the quantum computing ecosystem.
• Composition: 64.2% equities in technology sector, 20.2% cash and cash equivalents.

Key Points:

• Provides exposure to a rapidly growing industry.
• First-mover advantage and active management.
• High expense ratio.
• Volatile returns.

Risks:

• Volatility: Quantum computing is a new and rapidly evolving industry, which can lead to high volatility.
• Market risk: The ETF is heavily invested in the technology sector, which can be affected by economic downturns.

Who Should Consider Investing:

• Investors with a long-term investment horizon and a high risk tolerance.
• Investors who believe in the long-term potential of quantum computing.

Fundamental Rating Based on AI:

7.5 out of 10

QTUM has a strong track record and is well-positioned to benefit from the growth of the quantum computing industry. However, its high expense ratio and volatile returns are important considerations for investors.

Resources and Disclaimers:

• This analysis is based on data from Yahoo Finance and ETF.com.
• This information is for educational purposes only and should not be considered financial advice. Please consult with a financial advisor before making any investment decisions.