Quantum Computing Becomes a Hot Topic... Record-Breaking Inflows into Related ETFs [Global ETF]

In the New York Stock Exchange, 'Quantum Computing' has emerged as a new theme, drawing significant buying interest in exchange-traded funds (ETFs) that include related stocks. Quantum computing can be utilized in various fields such as drug development and financial modeling, leading to expectations of successive launches of quantum computing ETFs in the future.

According to Bloomberg on the 24th (local time), the 'Defiance Quantum ETF' (QTUM), which includes stocks related to quantum computing, saw an inflow of $250 million in December alone, marking the highest monthly cash inflow since its listing in 2018. It surged 17.2% from the beginning of the month until the 24th.

Annual QTUM Fund Inflows (Image: Bloomberg Capture)

Bloomberg explained, "QTUM was not a particularly notable ETF after its launch," adding, "The news that Alphabet developed a quantum computer equipped with the 'Willow' quantum computer chip led to a surge in fund inflows."

Quantum computers, capable of ultra-fast computations surpassing supercomputers, are called 'dream computers.' They can solve complex problems at high speed using the principles of quantum mechanics, attracting attention in various fields such as drug development, materials science, financial modeling, and artificial intelligence. There is anticipation in the market that it could become the next-generation theme following artificial intelligence (AI).

Athanasios Psarofagis, an analyst at Bloomberg Intelligence, stated, "Quantum computing reached a major turning point last year, similar to AI," and evaluated that "QTUM is virtually the only player since quantum computing-related stocks are not included in many other ETFs." He further predicted, "More quantum computing-related ETFs may be launched in the future."

QTUM holds 72 stocks related to quantum computing. Top holdings include Rigetti Computing, a developer of quantum integrated circuits (11.42%), D-Wave Quantum, a Canadian company that commercialized the world's first quantum computer (8.85%), and IonQ, a quantum computing startup (6.24%). Alphabet and NVIDIA also account for 1.2% each.

QTUM Holdings (Image: etf.com)