The quantum computing sector has been on fire in recent months, fueled by a game-changing breakthrough from tech titan Google (NASDAQ:GOOGL) with its revolutionary Willow chip. Some stocks in the space, like IONQ Inc (NYSE:IONQ), Rigetti Computing Inc . (NASDAQ:RGTI) and D Wave Quantum (NASDAQ:QMCO) Inc (NYSE:QBTS), have skyrocketed 4-10x in a short span, drawing massive investor interest. However, the sector’s meteoric rise has also sparked volatility, with industry heavyweights like NVIDIA (NASDAQ:NVDA) raising questions about the timeline for real-world commercial success. Amid the buzz, Sylvia Jablonski, CEO of Defiance ETFs—which manages the $1 billion NAV Defiance Quantum ETF (NASDAQ:QTUM)—joins Investing.com to discuss the opportunities and challenges shaping this rapidly evolving frontier.
1 . Can you explain quantum computing and the investment opportunities in the sector?
Sylvia: Quantum computing is one of the most disruptive and potentially revolutionary developments of our time. It defines the 4th Industrial Revolution. With the potential to disrupt industries ranging from pharmaceuticals to finance. Unlike classical computers that use binary bits (0s and 1s), quantum computers use qubits, which can exist in multiple states simultaneously and solve problems that are practically impossible for classical computers.
From an investment perspective, this sector is still in its infancy but has immense long-term potential. Companies leading the charge include major tech players like Google, IBM (NYSE:IBM), and Microsoft (NASDAQ:MSFT), as well as specialized startups innovating in areas like quantum hardware, software, and cryptography. Think companies like Ionq, Dwave and Rigetti. Investing now is about getting in early on a revolutionary trend, though it requires a long-term horizon as the technology matures.
2. How does your ETF differ from other investments, including buying directly into companies in the sector?
Sylvia: Our ETF is designed to give investors diversified exposure to the quantum computing ecosystem without the need to pick individual winners. Instead of trying to identify which single company will dominate the space—a risky and speculative endeavor—our ETF spreads investment across a portfolio of companies leading in quantum innovation. This includes hardware developers, software pioneers, and adjacent industries like semiconductors and AI, which are integral to the growth of quantum computing. For example, when quantum stocks fell 30-40% a couple of weeks ago, our ETF was down low single digits and rebounded quickly as the ballast of the large cap, strong balance sheet firms, offset the risk of the smaller cap names that took the brunt of the news. On the other hand those small caps may rip and rally, have m&a activity in the future, and greatly add to the returns of the larger cap firms. It is great to have that diversity.
Buying individual stocks can offer high returns if you pick the right company, but it’s inherently risky, especially in an emerging sector. Our ETF mitigates some of that risk while providing a balanced way to participate in the long-term growth story of quantum computing.
3. Google recently announced a breakthrough in quantum computing with its Willow chip. How has this changed the sector landscape?
Sylvia: Google’s Willow chip is a significant leap forward. By improving error fixes, it brings us closer to realizing practical applications of quantum computing. What’s particularly exciting is that breakthroughs like these accelerate innovation across the sector. When a big company like Google has a win like that it tends to waterfall to others involved in the space, too.
Google’s announcement highlights how we’re moving from the research phase into the early stages of commercialization. For investors, it’s a signal that the quantum race is heating up, and the sector is becoming more tangible with each technological breakthrough.
4. Nvidia CEO Jensen Huang recently said that practical quantum computing is 15-30 years away. Do you agree or disagree?
Sylvia: While Mr. Huang makes a fair point that Quantum computing is extraordinarily complex, and many technical challenges—I believe we’ll start seeing quantum computing applications in specialized industries like pharmaceuticals, logistics, and materials science within the next decade. We are also seeing companies like MSFT and DWAVE come out and explain how they are doing quantum computing in real-time.
While the mass adoption of quantum computing may be an arguable amount of years away, early adopters will likely start reaping the benefits much sooner. That’s why it’s critical to position yourself in this space now, as we’re on the cusp of smaller but still significant breakthroughs.
5. Is there anything else investors should understand about the quantum computing sector?
Sylvia: Quantum isn’t a unique thing. It exists in the world of AI, machine learning, cyber security, and cryptography. I think that there will be a lot of investment from both the private and public sectors in the space in years to come.
Sylvia Jablonski is the Chief Executive Officer and Chief Investment Officer of Defiance ETFs. Sylvia is a pioneer in the ETF industry and a top expert recognized for her market expertise on television and radio, including CNBC, Bloomberg, Fox, WSJ, Barron’s, Yahoo and Forbes to name a few. Sylvia manages Defiance‘s investment outlook, capital markets, and product development. Prior to joining Defiance Sylvia was Managing Director at Direxion.
This content was originally published on Investing.com
