The world of quantum computing has become a high-risk, high-reward investment landscape where many stocks trade like lottery tickets. However, the Defiance Quantum ETF offers a different approach by combining speculative pure-play companies with established tech giants investing in quantum research.
This fund tracks the BlueStar Quantum Computing and Machine Learning Index, holding 80 positions with varying degrees of quantum exposure. It includes both pure-play quantum stocks like IonQ and Rigetti Computing, alongside tech giants like Nvidia and Advanced Micro Devices that are building quantum-enabling infrastructure.
The mix is intentional, as three major pure-play quantum stocks trade at sky-high revenue multiples while burning cash rapidly. By adding these profitable companies, the fund provides a balanced approach to a speculative theme, acknowledging an uncomfortable truth that nobody knows which approach will ultimately work.
Despite uncertainty surrounding quantum computing’s potential, the Defiance Quantum ETF has shown a 38% year-to-date gain through October 22, reflecting growing excitement around breakthroughs. The fund captures indirect quantum beneficiaries, such as semiconductor equipment makers and cloud infrastructure providers.
Investors should understand that this ETF is not a lottery ticket, offering exposure without requiring them to become quantum physicists. While it doesn’t eliminate uncertainty, the fund structure spreads risk by providing established cash flows from tech giants funding quantum research and the potential for pure-play start-ups to crack the code.
For investors who believe in quantum computing’s innovation but lack conviction about which company will commercialize it first, this ETF offers an easy path forward. It allows them to diversify their betting while minimizing the risk of wipeout.
Source: https://www.fool.com/investing/2025/10/23/here-is-the-easiest-way-for-investors-to-gain-expo