QTUM

Defiance Quantum ETF (QTUM) is an exchange-traded fund that seeks to track the performance of an index composed of global companies with exposure to quantum-related technologies and machine learning. The ETF is managed by Defiance ETFs and trades under the ticker QTUM on Nasdaq..

Classified as a thematic global equity ETF, QTUM aims to reflect, before fees and expenses, the aggregate performance of the stocks included in its benchmark index. To achieve this objective, the fund employs a passive management strategy, maintaining a portfolio that seeks to replicate the composition and weighting of the quantum-focused index.

QTUM tracks the BQTUM Index, composed of companies involved in quantum technologies and machine learning and related areas, weighted according to specific criteria of the index provider, with periodic reviews to rebalance exposure to eligible companies.

Diversification and sector exposure

QTUM provides exposure to the global technology sector with a focus on quantum and advanced technologies, including companies operating in segments such as:

• Quantum computing.

• Quantum instrumentation and sensors.

• Advanced semiconductors.

• Next-generation software and algorithms.

• Quantum communication technologies.

This composition allows the ETF to reflect the performance of companies directly involved in the development or application of quantum technologies, a long-term technology theme.

Structure and costs

Shares of QTUM are traded on the secondary market, while creation and redemption of shares are carried out by authorized participants, a mechanism that helps keep the ETF’s market price close to its net asset value (NAV).

The fund carries an expense ratio consistent with technology-themed ETFs, typically higher than broad market equity funds due to its specialized niche, and does not charge a performance fee. QTUM may make periodic income distributions, depending on dividends paid by the companies held in its portfolio. The ETF has a single share class and trades exclusively under the ticker QTUM.

History and evolution of the ETF

The Defiance Quantum ETF was launched in 2018, amid growing investor interest in thematic strategies capturing long-term technological trends, such as artificial intelligence, advanced computing, and emerging technologies.

Since its inception, QTUM has drawn attention from investors seeking exposure to disruptive themes, becoming part of portfolios focused on cutting-edge technology despite the higher volatility typical of technology-driven sectors.

Between 2022 and 2024, the ETF reflected developments in the quantum technology ecosystem amid regulatory milestones, corporate R&D investments, and discussions around the commercialization of quantum applications, while maintaining liquidity within its thematic category.