What Is QTUM? Defiance Quantum ETF

QTUM is the Defiance Quantum ETF, an exchange-traded fund that tracks the BlueStar Quantum Computing and Machine Learning Index. It holds roughly 85 to 90 companies building quantum computers, advanced chips, and machine-learning systems. The fund uses a modified equal-weight approach so exposure is spread across many names rather than concentrated in a few. It charges a 0.40% expense ratio.

QTUM is issued by Defiance ETFs and trades on the Nasdaq. It passively tracks the BlueStar Quantum Computing and Machine Learning Index, a rules-based index that selects companies deriving a meaningful share of revenue or activity from quantum computing and machine-learning technology, then weights them in a modified equal-weight scheme.

Newer funds like the WisdomTree Quantum Computing Fund concentrate heavily on small pure-play quantum names such as IonQ, Rigetti, and D-Wave. QTUM instead blends those startups with large, profitable chipmakers like Micron, Intel, and Marvell. That makes QTUM broader and less volatile, but also less of a direct bet on quantum breakthroughs alone.

QTUM holds roughly 85 to 90 stocks. The mix includes semiconductor makers (Micron, Intel, AMD), chip-equipment firms (Lam Research, Teradyne, ASML, MKS), photonics names (Coherent), and pure-play quantum companies (IonQ, Rigetti, D-Wave). Thanks to modified equal weighting, top holdings each sit around 1% to 3%, and the top 10 make up only about 16% of the fund.

QTUM charges a 0.40% annual expense ratio, which works out to about $4 per year for every $1,000 invested. That is higher than a broad index fund but roughly in line with, or below, other thematic quantum and AI-hardware ETFs, which often charge 0.40% to 0.75%.

Yes, but the yield is small. QTUM distributes dividends quarterly and yields roughly 0.7%. Because the fund holds many growth-oriented technology and quantum companies that reinvest rather than pay large dividends, income is not the point of owning it. Investors generally hold QTUM for potential capital appreciation from the quantum and AI theme.

QTUM trades like any stock. You can buy it through brokers such as Robinhood, Fidelity, Charles Schwab, or Public, and most now support fractional shares so you can invest a set dollar amount. You can also connect your existing brokerage to Walnut to track QTUM inside a thematic basket alongside your other holdings.

QTUM manages roughly $6 billion in assets as of mid-2026, making it the largest and most established quantum-themed ETF. Its size grew sharply through 2025 and 2026 as investor interest in quantum computing surged. Large AUM generally means tighter bid-ask spreads and easier trading.

That depends on your goals, time horizon, and risk tolerance, and this is not investment advice. QTUM offers diversified exposure to a fast-moving, speculative theme, which can cut both ways: it is steadier than owning one quantum startup, but still a concentrated technology bet that can swing sharply. Consider how it fits your overall plan and consult a licensed adviser if unsure.

QTUM launched in September 2018, making it one of the first quantum-computing-focused ETFs on the market. Its long track record and early-mover status are part of why it became the category's largest fund well before the wave of newer pure-play quantum ETFs arrived in 2025 and 2026.

Yes. QTUM holds pure-play quantum names including IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc, but each typically carries only about a 1% weight. The bulk of the portfolio sits in larger semiconductor and machine-learning companies, so those startups influence returns less than they would in a concentrated pure-play fund.

The BlueStar index defines the quantum and machine-learning ecosystem broadly, including the hardware and infrastructure that advanced computing depends on. Companies like Micron, Intel, Lam Research, and ASML supply memory, processors, and manufacturing tools used across both classical AI and quantum research, so the index counts them as enabling technology holdings.

QTUM can be volatile because it holds emerging-technology and quantum stocks that react strongly to news, funding rounds, and earnings. Its modified equal-weight design and blend of large chipmakers with small quantum names dampen the swings somewhat versus a pure-play fund, but investors should still expect larger price moves than a broad market index.

Defiance refreshed the fund's index methodology in early 2026 to sharpen its focus on quantum and advanced-computing hardware providers. The core approach, a rules-based, modified equal-weight index of quantum and machine-learning companies, stayed intact. Always check the latest fund documents for the current holdings and methodology before investing.

Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. QTUM's figures are above; the full method is in Walnut's guide on how to compare ETFs.