Defiance ETFs lowers fees on quantum computing fund

Jan 15th, 2019 | By | Category: Equities

Defiance ETFs has lowered the expense ratio for the Defiance Quantum Computing ETF (QTUM US) from 0.65% to 0.40%.

Paul Dellaquila, Global Head of ETFs at Defiance

Paul Dellaquila, Global Head of ETFs at Defiance ETFs.

Paul Dellaquila, Global Head of ETFs at Defiance, commented, “We want to make sure our innovative QTUM ETF is best positioned to be the go-to vehicle for investors who are interested in investing in companies developing the underlying technologies behind quantum computing and machine learning.”

The reduced expense ratio came into effect on 14 January 2019.

The fund, which was initially launched on NYSE Arca in September 2018, provides access to a portfolio of global companies that are developing and applying machine learning and quantum computing technology.

This includes exposure to hardware companies and software makers, as well as defence and security firms within the quantum computing space.

According to Defiance, Quantum computing seeks to solve complex problems through computers using quantum-mechanical phenomena which accelerates the entire computing process and expands the range of what’s possible in machine learning, artificial intelligence (AI), and other applications.

Google and NASA have reported that a quantum computer they piloted together processes algorithms 100 million times faster than a traditional computer chip.

While nearly every industry has the potential to benefit from the growth of this technology, key applications are being built in finance, cybersecurity, drug discovery, energy, and autonomous vehicles. There’s even the potential for quantum computing to help predict weather disasters.

The fund tracks the BlueStar Quantum Computing and Machine Learning Index. The index includes stocks with a minimum size of $150 million, although approximately three-quarters of the index weight is assigned to stocks with market capitalizations greater than $5 billion.

Index provider BlueStar screens a broad universe of global equities to determine which companies are related to the themes of quantum computing and machine learning. It does this by analyzing company annual filings, investor and analyst presentations, sell-side research reports, industry reports and trade journals, and company descriptions on bonafide sources such as public websites and Bloomberg.

Constituents are equally weighted in the index subject to certain liquidity constraints.

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