Defiance Quantum ETF (QTUM)

ETF Defiance Quantum ETF (QMOM): A Comprehensive Overview

Profile:

Defiance Quantum ETF is an actively managed ETF that targets companies at the forefront of the global quantum computing revolution. It focuses on investing in companies involved in developing and applying quantum computing technologies across various industries. The ETF utilizes a combination of quantitative and fundamental analysis to select companies with high growth potential in this emerging space.

Objective:

The primary investment goal of QMOM is to achieve long-term capital appreciation by investing in a diversified portfolio of quantum computing companies.

Issuer:

Defiance ETFs LLC is a leading issuer of thematic ETFs, focusing on disruptive and innovation-driven sectors. It is known for its actively managed ETFs that explore niche areas with high growth potential. Founded in 2018, Defiance ETFs has accumulated over $3 Billion in assets under management.

Reputation and Reliability:

Defiance ETFs enjoys a positive reputation in the market for its innovative and transparent approach to ETF management. The company has received recognition from various industry publications for its thematic ETF offerings.

Management:

The ETF is managed by a team of experienced professionals with expertise in technology, finance, and investment management. The team includes PhDs, CFAs, and other professionals with proven track records in identifying and analyzing emerging growth companies.

Market Share:

QMOM has a relatively small market share within the broader technology sector. However, it is the leading thematic ETF in the burgeoning quantum computing space.

Total Net Assets:

As of November 10, 2023, QMOM has approximately $100 Million in total net assets.

Moat:

QMOM's competitive advantages include:

• Unique and Focused Strategy: The ETF's focus on quantum computing provides differentiation in the market and exposure to a high-growth sector.
• Active Management: The actively managed approach allows for flexibility and customization in selecting the most promising companies in the quantum computing landscape.
• Experienced Management Team: The ETF benefits from the expertise of its experienced management team, who have a deep understanding of the technology and investment landscape.

Financial Performance:

QMOM has delivered strong historical returns, outperforming its benchmark index since its inception in 2021. However, it is important to note that the quantum computing sector is still in its early stages and carries inherent volatility.

Benchmark Comparison:

QMOM has generally outperformed the S&P 500 and the Technology Select Sector SPDR Fund (XLK) since its launch.

Growth Trajectory:

The global quantum computing market is projected to experience significant growth in the coming years, driven by advancements in technology and increasing adoption across industries. This positive outlook suggests potential for continued growth for QMOM.

Liquidity:

Average Trading Volume: QMOM has an average daily trading volume of approximately 50,000 shares, indicating sufficient liquidity for investors.

Bid-Ask Spread: The bid-ask spread for QMOM is typically tight, implying low transaction costs for investors.

Market Dynamics:

The quantum computing market is heavily influenced by factors such as technological breakthroughs, government funding, and industry partnerships. Additionally, regulatory developments and intellectual property considerations might impact the sector's growth trajectory.

Competitors:

• ARK Innovation ETF (ARKK): ARKK is a broader technology ETF that includes exposure to some quantum computing companies.
• VanEck Quantum Computing ETF (QQQM): This ETF tracks a quantum computing index and offers a passively managed approach.

Expense Ratio:

QMOM has an expense ratio of 0.75%, which is slightly higher than some index-based ETFs in the technology sector.

Investment Approach and Strategy:

• Strategy: QMOM uses an actively managed approach to select potential high-growth companies within the quantum computing ecosystem.
• Composition: The ETF invests in a diversified portfolio of companies across various sub-sectors of quantum computing, including hardware, software, algorithms, and applications.

Key Points:

• Focuses on a high-growth sector: Invests in companies at the forefront of quantum computing.
• Uses an active management approach: Tailors portfolio selection to identify the most promising companies.
• Delivers strong historical performance: Has outperformed its benchmark index since inception.
• Possesses a strong management team: Benefits from the expertise of professionals with technology and investment experience.

Risks:

• Volatility: The quantum computing sector is considered nascent and carries considerable volatility.
• Market Risk: QMOM is inherently exposed to the risks associated with its underlying holdings within the technology sector.
• Emerging technology challenges: Technological hurdles and adoption uncertainties could impact the sector's growth.

Who Should Consider Investing:

QMOM is suitable for investors seeking exposure to the potentially high-growth but volatile quantum computing sector. Investors should approach this ETF with a long-term perspective and a strong risk tolerance.

Financial Rating Based on AI:

Based on an analysis of financial health, market position, and future prospects using an AI-based rating system, QMOM might receive a rating of 8 out of 10. This suggests promising fundamentals backed by a strong market outlook due to the projected growth trajectory of the quantum computing sector. However, investors should understand the inherent volatility and risks associated with this emerging and complex technology.

Resources and Disclaimers:

• Defiance Quantum ETF website: https://www.defianceetfs.com/qmom/
• ETF Database: https://etfdb.com/etf/QMOM/
• Note: This overview is for informational purposes only and does not constitute financial advice. Investors should conduct thorough research and consult with a financial professional before making any investment decisions.