What Is the QTUM ETF? Returns, Expense Ratio, Holdings, and Alternative ETFs at a Glance
The Defiance Quantum ETF (QTUM) invests in quantum computing and machine learning stocks, and its holdings span a broad range of semiconductor, telecom equipment, and defense companies. It is a product worth a look for investors who want both a view on related stocks and diversified exposure to the theme, and it pays dividends quarterly.
SubscribeWhat Is the Defiance Quantum ETF?
The fund tracks the BlueStar Quantum Computing and Machine Learning Index and holds, on an equal-weighted basis, companies that derive a large share of their revenue from developing quantum computing and machine learning technology.
It suits investors who want to bet on the long-term growth of the quantum computing and artificial intelligence themes.
It is a passive (index-tracking) ETF managed by Defiance.
How Does the Defiance Quantum ETF Invest?
| Item | Details |
|---|---|
| Management style | Passive (index tracking) |
| Tracking index | BlueStar Quantum Computing and Machine Learning Index |
| Rebalancing frequency | Once per quarter |
| Dividend frequency | Quarterly dividends |
| Total expense ratio | 0.40% |
Under the index inclusion criteria, the fund selects companies that generate at least a certain share of their revenue or business activity from developing quantum computing and machine learning technology. To reduce concentration in individual stocks, weights are allocated in a manner close to equal weighting. Holdings span related industries, including semiconductors, telecom equipment, and defense.
- Near-equal-weight allocation eases concentration in a few large-cap stocks
- A theme definition that extends beyond semiconductors to telecom and defense
Defiance Quantum ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $5.3B, and the total expense ratio is 0.40% per year.
Defiance Quantum ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe fund tends to move in step with the broader artificial intelligence and semiconductor themes, and it has repeatedly shown volatility that widens or narrows depending on earnings releases and industry news from related companies.
Inflows tend to rise while market interest in the artificial intelligence and quantum computing themes persists, and fund flows slow along with it when interest in the theme cools.
Defiance Quantum ETF Pros and Cons
Its strength is the ability to diversify across themes with large growth potential, while its weakness is a heavy reliance on a specific technology theme.
💪 Key Strengths
⚠️ Points to Watch
Defiance Quantum ETF Alternatives and Related Products
Under its category classification, QTUM has no similar ETFs that are automatically compared in the table, so comparable listed fund data is limited. That said, investors can also consider ETFs on related themes, such as SOXX and SMH, which invest across the semiconductor industry, BOTZ, which focuses on robotics and artificial intelligence, and ARKQ, which focuses on autonomous driving and robotics. Some of their holdings overlap with QTUM, but their theme definitions and industry weightings differ, so their exposure profiles are not the same.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 FNDX | Schwab Fundamental U.S. Large Company ETF | $32.71 | -0.6% | $28.6B | 0.25% | 1.44% | +23.3% |
 PRF | Invesco RAFI US 1000 ETF | $56.13 | -0.8% | $10.2B | 0.34% | 1.32% | +23.1% |
 FNDA | Schwab Fundamental U.S. Small Company ETF | $35.98 | -1.3% | $9.0B | 0.25% | 1.23% | +17.6% |
 RECS | Columbia Research Enhanced Core ETF | $44.93 | -1.5% | $6.2B | 0.15% | 0.72% | +10.0% |
 JHMM | John Hancock Multifactor Mid Cap ETF | $73.57 | -1.3% | $6.1B | 0.41% | 0.89% | +14.8% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 ARQQ | Arqit Quantum Inc | 0.02% | $15.73 | -10.6% | $273.7M | - | - |
 HQ | Horizon Quantum Holdings Ltd | 0.02% | $14.04 | -8.4% | $757.8M | - | - |
| TER | Teradyne Inc | 0.02% | $274.37 | -7.4% | $42.9B | 31.5 | 0.19% |
 TSEM | Tower Semiconductor Ltd | 0.02% | $166.48 | -11.4% | $18.9B | 65.7 | - |
 MKSI | MKS Inc | 0.02% | $202.04 | -6.5% | $13.7B | 32.2 | 0.49% |
 STHH | STMicroelectronics NV ADRhedged | 0.02% | $9.76 | -5.8% | $0.0M | - | 2.27% |
| NOK | Nokia Corp ADR | 0.02% | $8.56 | -8.1% | $48.4B | 53.9 | 2.03% |
| LMT | Lockheed Martin Corp | 0.02% | $636.95 | -1.0% | $147.1B | 22.6 | 2.2% |
| MU | Micron Technology Inc | 0.02% | $884.74 | -5.3% | $1.00T | 11.9 | 0.08% |
 OBT | Orange County Bancorp Inc | 0.02% | $38.69 | +0.3% | $518.8M | 10.4 | 1.76% |
Defiance Quantum ETF Investor Checkpoints
Here are the points to review before investing in QTUM. As a theme-focused product, it is advisable to thoroughly check costs, volatility, and changes in holdings before investing.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense ratio | Check the cumulative impact over a long holding period | Annual fee applies |
| 📊 Theme concentration | Whether the revenue-share criteria for quantum computing and machine learning have changed | Needs checking |
| ⚖️ Stock allocation method | Whether large-cap concentration exists given the near-equal-weight allocation | Diversification maintained |
| 📈 Volatility | Price swings typical of theme-based products | Higher than the market average |
Because the fund is concentrated in a specific technology theme, volatility can be greater than that of the overall market when related industry conditions weaken. Investors should also be aware that the makeup of holdings can change if the index inclusion criteria are revised.
It is a suitable choice for investors who want diversified exposure to the quantum computing and machine learning themes. Given the theme concentration risk, adjusting its weight within the overall portfolio is the recommended approach.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of July 1, 2026.
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