Another "AI Moment"? Quantum Computing ETFs are Raking in Cash!
Since December, the quantum computing industry-themed ETF — DeFiance Quantum ETF (QTUM) has seen inflows of approximately $250 million, expected to become the largest monthly inflow since its establishment in 2018. QTUM has risen 18.8% in the past month, with a year-to-date increase of 55%
Google's Willow chip breakthrough has completely ignited the quantum computing market in the US stock market, with investors flocking to buy industry-themed ETFs, betting that quantum computing could become another "AI moment" that triggers a super rally.
According to Bloomberg data, since December, the quantum computing industry-themed ETF—Defiance Quantum ETF (QTUM) has seen inflows of approximately $250 million, expected to become the largest monthly inflow since its establishment in 2018.
QTUM has risen 18.8% in the past month, with a year-to-date increase of 55%.
For most of its six-year existence, QTUM has been lukewarm, with unremarkable returns and little investor interest. A year ago, the net inflow since QTUM's inception was only $160 million; after this surge in December, QTUM's size has reached $660 million.
Earlier this month, Google's Willow quantum chip made its debut, achieving a significant breakthrough where the error rate decreases exponentially with the increase in the number of qubits, and it can solve problems that would take supercomputers about 1 billion years to solve in just 5 minutes.
After this announcement, Alphabet, Google's parent company, saw its stock price rise, driving quantum computing-related stocks to soar.
In the past month, quantum computing leader IonQ surged 44%, up 267% year-to-date; Rigetti Computing saw a 312% increase in the past month, skyrocketing 1134% year-to-date; Quantum Computing rose 122% in the past month, with a year-to-date increase of 1821%; D-Wave Quantum increased 175% in the past month, up 870% year-to-date.
Bloomberg intelligence analyst Athanasios Psarofagis stated, "Quantum computing is experiencing the same moment that AI did last year. Many quantum stocks are not widely held by ETFs, so QTUM is the only pure choice. Psarofagis expects to see more quantum-related ETFs filing for listing soon.
The Purest Quantum Computing ETF
QTUM tracks the BlueStar Quantum Computing and Machine Learning Index (BQTUM), which covers approximately 73 globally listed companies at the forefront of machine learning, quantum computing, cloud computing, and other transformative computing technologies, including:
- Advanced traditional computing hardware
- High-performance computing data connection solutions and cooling systems
- Companies focused on the perception, collection, and management of heterogeneous big data used in machine learning
As of the end of the third quarter, in QTUM's holdings, quantum computing technology accounted for 41.6%, followed by machine learning services at 20%, artificial intelligence and application chips, graphics processors and other hardware, and big data and cloud computing accounting for 14.5%, 11.9%, and 12%, respectively.
Index constituent stocks are assigned equal weight, and the index constituents are reviewed every six months to determine their eligibility and reset weights accordingly. As of December 24, QTUM's top ten holdings include D-Wave Quantum, Rigetti Computing, IonQ, and others.
QTUM's fee rate is 0.4%.
This article is sourced from: Er Taofang Yanjiuyuan, original title: "Another 'AI Moment'? Quantum Computing ETF Crazy Fundraising!"