The Technology field Typically allowing investors to tap into the best and brightest ideas in the stock market, each advance makes it to the top of the list of holders. NASDAQ 100 Index. While most of 2024 dominated artificial intelligence And semiconductor stocks, it seems, have a new ace in innovation in 2025.
Investors may have seen the topic of quantum computing swirling around the market recently, as the name suggests Alphabet Inc. NASDAQ: GOOGL Making one of the first successes announcing their new Willow computer. However, as with the electric vehicle race, picking a winner from all the participants can be a difficult—if not risky—task.
So, today, investors can forget about picking and choosing which stocks and companies offer the best plan for the future of quantum computing because the market has sensed a potential bottleneck in demand, so it’s an exchange-traded Fund (ETF) has been created. Give investors access to diversified exposure to the world of quantum computing. This is where D Defiance Quantum ETF NASDAQ: QTUM comes into play.
The importance of investing in quantum computing
Defiance Quantum ETF today
As of 12:21 PM Eastern
- 52-week range
- $52.38
▼
$90.75
- Dividend yield
- 0.57%
- Property under management
- $816.35 million
Most investors do not yet understand quantum computing and its proposition for the world. To put it simply, ordinary computers today have to do one calculation at a time, and no matter how fast they get, unfortunately that’s where their potential ends.
In physics, an atom can be in many places at once, and someone incorporated this concept into the quest to make computers more powerful than ever before. The result? Atoms are the horsepower behind quantum computers, allowing them to perform multiple calculations, run multiple simulations, and process large amounts of data at once.
This is important because, as the technology becomes commercialized, industries like finance may be the first behind it, as investment banks and their quantitative (quant) departments are always looking for computational power.
What this means for investors is twofold. First, they may fall behind before the commercialization of this technology, and second, the investment world may soon change forever. Either way, the market is giving everyone a way out of it, don’t let Main Street rush in and get left behind.
Holdings reflect the penalty in this ETF
Now, for those who prefer to pick their own stocks, there is also an alternative strategy. Looking at ETFs and its holdingsInvestors will notice this Righetti Computing Inc. NASDAQ: RGTI is at the top of the list. This could be because the company has a more sophisticated technical setup or because of its price action.
No one can deny that momentum is favoring Righetti computing stocks. The last 12 months have pushed it into a trap Performance up to 1,964%Beating every other name exposed to quantum computing trends. As sad as it may be, some on Wall Street think the party can continue.
At JP Morgan Chase, he decided to increase his position in Rigetti Computing stock 3.4% by December 2024And if this bank isn’t afraid to buy into the running stock, neither should investors. A similar trend can be seen in the second largest holding in this ETF, D-Wave Quantum Inc. NYSE: QBTS.
This stock has a maturity of one year Performance up to 989%Righetti is not as big as computing, but is so respected that quantum computing is just starting on its path to attention. And like Righetti Computing, some institutional buyers were interested in seeing how high the stock could go.
Therefore, by November 2024, Pancera Capital Management decided to increase its holdings in D-Wave Quantum to 23%. This new addition raised its net position to a higher level $4.4 millionor 2.2% ownership in the company. This is a bullish factor that investors cannot ignore.
What can’t be ignored is that the momentum in these quantum computing names is very present, and institutional capital flows around them. Considering this is just the beginning of the technology as the market knows it, it will be like finding out Tesla Inc. NASDAQ: TSLA Before it was a Tesla.
Defiance Quantum ETF (QTUM) price chart for Monday, January 6, 2025
Before considering the Defiance Quantum ETF, you may want to hear this.
MarketBeat keeps track of Wall Street’s top-rated and best-performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified Five stocks That top analysts are quietly telling their clients to buy now before the broader market comes in… and the Defense Quantum ETF was not on the list.
While Defense Quantum ETF currently has a “Hold” rating among analysts, top analysts believe these five stocks are good buys.
Wondering where to start (or end) with AI stocks? These 10 simple stocks can help investors build long-term wealth as artificial intelligence continues to grow in the future.
