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Interested in Quantum Computing but Can't Decide Which Stocks to Buy? You Might Want to Check Out This ETF.
QMCOQuantum(QMCO) The Motley Fool·2025-01-06 10:00

Quantum Computing Stocks and ETFs - Interest in quantum computing stocks has risen, with companies like IonQ, Rigetti Computing, and Quantum Computing gaining attention [1] - These companies were penny stocks for most of last year but gained traction as quantum computing became a talking point among AI enthusiasts [3] - The Defiance Quantum ETF (QTUM) is highlighted as a better investment option compared to speculative quantum computing stocks [4] Defiance Quantum ETF Overview - The Defiance Quantum ETF focuses on AI and quantum computing, offering a diversified portfolio for investors [5] - The ETF holds top AI stocks like Palantir Technologies, Nvidia, and Taiwan Semiconductor Manufacturing, as well as defense sector names like Northrop Grumman and Lockheed Martin [6] - It also includes smaller, speculative quantum computing stocks such as Rigetti, IonQ, and D-wave Quantum [6] Investment Strategy and Performance - The Defiance Quantum ETF provides broad exposure to adjacent industries like semiconductors, enterprise software, and defense, offering insulation from individual stock volatility [7] - The ETF experienced steady gains in 2024, driven by AI's strong performance in the stock market, with notable valuation expansion in recent months [9] - The ETF is trading just below its 52-week high, with momentum likely to continue due to its core holdings in leading AI and quantum computing companies [10][11] Long-Term Investment Approach - A prudent strategy for investing in the Defiance Quantum ETF is dollar-cost averaging over a long-term horizon, allowing for increased exposure to high-growth markets while maintaining diversification [12]