Proprietary Data Insights
Financial Pros’ Top Niche Tech ETF Searches in the Last Month
Financial Pros Top Quantum Computing ETF
Traditional computers process information in a linear fashion.
Quantum computers can process the same calculation with different inputs simultaneously (for lack of a better explanation).
That’s why they’re fantastic for cryptography, modeling, and even AI, although they aren’t useful for everyday applications.
Nonetheless, quantum computing could revolutionize the way we see our world, helping us solve issues from biotechnology to fusion power.
We know about the big players like Google and IBM. But who else plays in the area? And more importantly, are any of them investible?
To answer those questions, we turned to our TrackStar data and sought out niche technology ETFs.
And that’s where we found arguably the BEST ETF in the space.
Key Facts About QTUM
QTUM offers access to leading companies in machine learning, quantum computing, cloud computing, and related transformative technologies.
It tracks the BlueStar Quantum Computing and Machine Learning Index (BQTUM), covering approximately 71 globally-listed stocks of all sizes. The index includes companies involved in the R&D or commercialization of systems and materials used in quantum computing and big data for machine learning.
So, while the ETF focuses on quantum computing, it’s also got great exposure to AI.
Index components are equally weighted, with adjustments for liquidity, and reviewed semi-annually for reweighting.
The ETF itself hasn’t yet reached the 5-year mark. However, the performance since inception comes pretty close.
The equal weighting rebalance keeps any one stock from helping or hurting the index, leading to lower volatility in a fairly volatile group of stocks.
As the Quantum Computing niche is unique in and of itself, we compared it to other top niche technology ETFs:
CIBR runs an expense ratio double the others and has the fewest stocks in its portfolio.
iShares ETFs hold more stocks with lower expense ratios but don’t have the greatest overall performance.
QTUM has the best return by a mile but doesn’t have high liquidity or assets under management.
So, with each ETF, there are certainly some tradeoffs to consider.
Our Opinion 5/10
While we like the idea and performance of QTUM, the low volume and total assets under management make us nervous.
Ideally, we want to see at least half a billion dollars under management and 50,000 shares traded daily.
Otherwise, liquidity can become a problem.
That said, there aren’t any other options we’re aware of. So, if you absolutely must have quantum computing in your portfolio, this is your avenue.
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