QTUM: Less Concentrated Than SOXX, With Quantum Computing Too

Chetan Woodun profile picture
Chetan Woodun


  • The Defiance Quantum ETF or QTUM provides exposure to innovative technologies mainly in the semiconductor ecosystem just like SOXX.
  • In this respect, the quantum computing sector, currently in the development phase, has seen a lot of money pouring in.
  • This is where QTUM becomes attractive, as it provides an indirect way to gain exposure to the quantum world instead of investing directly in startups.
  • I also realistically examine the prospects in view of the hype surrounding quantum science.
  • By offering less concentration risks while at the same time providing investors with quantum prospects, QTUM looks better than its iShares peer, but beware of the current inflationary pressures on growth stocks.

Circuit board with CPU. Motherboard system chip with glowing processor. Computer´s technology and internet concept.

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The Defiance Quantum ETF (NYSEARCA:QTUM) is comprised of listed companies engaged in R&D and looking for commercialization opportunities in quantum computing (QC). The fund managers further add that their holdings operate in "advanced

Data by YCharts

This article was written by

Chetan Woodun profile picture
My aim is to provide differentiated insights, whether it is for investing, trading, or informational reasons. For this purpose, I am not a classical equity researcher or fund manager, but, I come from the IT world as the founder of Keylogin Information and Technologies Co. Ltd. Thus, my research is often backed by analytics and I make frequent use of charts to support my position.I also invest, and thus, in this tumultuous market, I often look for strategies to preserve capital. As per my career history below, I have wide experience, initially as an implementer in virtualization and cloud, and I was subsequently a team leader and project lead, mostly working in telcos.I have also been a mediocre entrepreneur in real estate, and a farmer, and like to dedicate at least 5 hours per week to working on a non-profit basis. For this purpose, I regularly contribute peer reviews and opinions for enterprise tech and help needy families by providing sponsored work.As for Research, I started with Tech stocks before going Multi-Tech with Fintechs, Biotechs, and Cryptotechs.I have been investing for the last 25 years, initially in mutual funds where the "learned economists" would always advise you to "think long term". Got a lot of experience in the 2008/2009 downturn when I lost a lot. Since then I do my own research and have fallen in love with Seeking Alpha because of the unique perspectives it provides to someone investing hard-earned money as well as access to some of the best financial advisors.We live only once but can have many "investment lives" especially when investing in individual stocks.

Disclosure: I/we have a beneficial long position in the shares of SOXX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This is an investment thesis and is intended for informational purposes. Investors are kindly requested to do additional research before investing. I/We may initiate a beneficial long-term position in QTUM within the next 72 hours.This article has been edited with the help of Bhoshan Woodun

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