At a glance
QTUM charges 0.4% a year, above the 0.27% average of the 8 funds most like it (the 7th cheapest of 9). It has $6.26B in assets, the 9th largest of that group; it paid 0.99% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +26.4% with distributions reinvested (S&P 500: +11.5%), 4th of those 9 funds; over three years it returned +48.3% a year. At its worst it fell 35.2% in the 2020 crash (S&P 500: 33.7%) and 37.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 4 months and 15 months after the lows. Its ten largest positions make up 16.9% of the fund, out of 86 in all.
The short version
Defiance Quantum ETF (QTUM) is an index fund that tracks the BlueStar Quantum Computing and Machine Learning Index. That index holds about 80 global companies tied to quantum computing, machine learning and the chipmaking equipment behind them. Each stock gets roughly the same weight, so small quantum specialists count about as much as large chipmakers. It costs 0.40% a year, more than most similar tech funds, and it has swung much harder than the broad market.
Price history
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QTUM +26.4% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| QTUM official prospectus, to Dec 31, 2025 | — | +36.35% | — | +22.62% | — | +23.41% |
| QTUM price data to Oct 27, 2026 | +30.4% | +26.4% | +48.3% | +23.4% | — | +25.0% |
- Over the year to Oct 27, 2026, QTUM returned +26.4%, 4th of 9 among similar funds.
- Its 5-year annualized return was +23.4%.
- In the 2020 COVID crash it fell 35.2% and regained its old high 3.6 months after the low.
- Its worst full calendar year was 2022 (-28.8%); its best was 2024 (+50.8%).
- The deepest fall in its price history was 38.4% (Nov 16, 2021 to Oct 14, 2022), recovered by Jan 23, 2024.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +30.4% | — |
| 2025 | +36.7% | +36.35% |
| 2024 | +50.8% | +50.69% |
| 2023 | +39.9% | +39.60% |
| 2022 | -28.8% | -28.56% |
| 2021 | +35.2% | +35.27% |
| 2020 | +42.1% | +42.01% |
| 2019 | +48.0% | +48.20% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 33.8% over that stretch · deepest drop along the way 35.2%, back to its old high 3.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 37.2% over that stretch · deepest drop along the way 37.2%, back to its old high 15.3 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.9500 | |
| 2025 | $1.1200 | +86.3% |
| 2024 | $0.6012 | +36.6% |
| 2023 | $0.4400 | -22.8% |
| 2022 | $0.5700 | +111.1% |
| 2021 | $0.2700 | +50.0% |
| 2020 | $0.1800 | 0.0% |
| 2019 | $0.1800 |
What's inside
As of Jun 30, 2026, the fund held 86 securities; the ten largest made up 16.86% of assets. It also reported 13.85% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.
| Holding | Weight | |
|---|---|---|
| Arqit Quantum Inc | 2.41% | |
| Horizon Quantum Holdings LTD | 2.38% | |
| Quantinuum Inc | 1.57% | |
| Astera Labs Inc | 1.55% | |
| Applied Materials Inc | 1.55% | |
| KLA Corp | 1.50% | |
| MKS Inc | 1.50% | |
| Onto Innovation Inc | 1.49% | |
| Teradyne Inc | 1.48% | |
| Lam Research Corp | 1.43% | |
| Nebius Group NV | 1.39% | |
| Intel Corp | 1.39% | |
| Micron Technology Inc | 1.37% | |
| BTQ Technologies Corp | 1.37% | |
| Advanced Micro Devices Inc | 1.36% |
By country
United States 57.76%Japan 7.63%Netherlands 7%Taiwan 6.59%Canada 3.66%By asset type
Stocks 99.3%What changed recently
- Over the three months to Jun 30, 2026, investors added a net $1.08B (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +25.24%, +19.68%, +3.47%.
How it works
QTUM is passively managed. It tries to match the BlueStar Quantum Computing and Machine Learning Index, which is owned by BlueStar Global Investors, a firm not affiliated with Defiance. Twice a year, BlueStar screens stocks listed around the world, including in emerging markets. It looks for companies that earn at least half their revenue, or do at least half their business, in quantum computing or machine learning. That covers quantum hardware and software, machine-learning chips and software, advanced chip-packaging equipment, and raw materials. Companies must be worth at least $150 million (machine learning) or $100 million (quantum).
The index takes the largest eligible companies until it covers 98.5% of their combined market value, and it has at least 70 names. As of March 31, 2026, it had 82 constituents, 20 of them listed outside the US. At each rebalance, every stock is set to an equal weight, with less for thinly traded shares. Weights then drift until the next reset after the third Friday of June and December. New IPOs can be added in March and September.
The fund generally owns every index stock. As of June 30, 2026, it held 86 stocks, and the top 10 made up just 16.86% of assets. The index is concentrated in semiconductors. Portfolio turnover was 42%.
What it really costs
- QTUM charges 0.4% a year, versus an average of 0.27% for the similar funds below (7th of 9, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $41 in the first year and $505 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| QTUM | $41 | $128 | $224 | $505 |
In a retirement portfolio
QTUM is a narrow, volatile theme fund focused on semiconductors and quantum computing, so it fits best as a small add-on to a broader core.
QTUM could add a focused stake in quantum computing, machine learning and chip equipment to a broad core portfolio. It launched in September 2018, so it has never been through a 2008-style crisis. In the 2020 COVID crash it fell 35.2% in about a month, then recovered by July 2020. Its deepest drop was 38.4%, from November 2021 to October 2022, and it took until January 2024 to regain that peak. Its worst calendar year was 2022, when it lost 28.56%. Someone who had to sell shares during that stretch would have locked in large losses. The yield was 0.99% as of October 27, 2026, paid quarterly, so it offers little income. Its 0.40% expense ratio is above the 0.27% average of similar funds. Past results don't predict the future, and a retirement plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting a small, equal-weighted slice of quantum computing, machine learning and chip-equipment stocks alongside a broad core fund.
- Those who can live with swings like the 38.4% drop from November 2021 to October 2022 and a recovery that took until January 2024.
- People wanting global tech exposure: about 42% of assets were outside the US as of June 30, 2026, including Japan, the Netherlands and Taiwan.
Look elsewhere if
- Retirees who need income: the yield was 0.99% as of October 27, 2026.
- Cost-focused investors: QTUM charges 0.40% a year versus 0.08% for XLK and 0.09% for VGT, broader tech funds that share some holdings.
- Anyone seeking diversification: the index is concentrated in semiconductors and has heavy software exposure, so it adds little outside technology.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| QTUM this fund | — | 0.4% | $6.26B | +26.4% | +48.3% |
| SMH VanEck Semiconductor ETF | 27% | 0.35% | $77.20B | +40.5% | +52.2% |
| SOXX iShares Semiconductor ETF | 25% | 0.35% | $47.82B | +48.5% | +44.1% |
| IGM iShares Expanded Tech Sector ETF | 25% | 0.41% | $10.71B | +21.3% | +38.6% |
| IXN iShares Global Tech ETF | 24% | 0.41% | $9.46B | +30.4% | +36.5% |
| XLK Technology Select Sector SPDR Fund | 23% | 0.08% | $123.91B | +20.1% | +4.0% |
| IYW iShares U.S. Technology ETF | 23% | 0.39% | $23.58B | +13.9% | +30.4% |
| FTEC Fidelity MSCI Information Technology Index … | 23% | 0.084% | $19.85B | +15.4% | +30.0% |
Questions investors ask
Is QTUM good for retirement?
QTUM is a high-risk theme fund, so it may suit a small side position rather than the core of a retirement portfolio. It lost 28.56% in 2022 and fell 38.4% from its November 2021 peak, taking until January 2024 to recover. Its one-year beta was 2.13 as of October 27, 2026. Beta measures how much a fund moves with the market, so 2.13 means it moved about twice as much. It also pays little income.
What's the difference between QTUM and SMH?
QTUM spreads its money roughly equally across about 86 stocks tied to quantum computing and machine learning, including small quantum specialists like Arqit Quantum and Horizon Quantum. SMH, the VanEck Semiconductor ETF, focuses on chip companies. About 27% of their holdings overlap. SMH costs 0.35% a year versus 0.40% for QTUM. SMH returned 52.8% over one year as of October 29, 2026. QTUM returned 26.4% over one year as of October 27, 2026.
Does QTUM pay dividends?
Yes, QTUM pays distributions every quarter, but they are small. Over the 12 months to October 27, 2026, it paid $1.40 per share, a yield of 0.99%. The fund is built around a technology theme, not around income. Investors who want regular cash from their portfolio would get very little from this fund, and its share price swings much more than its payouts.
What is QTUM's expense ratio?
QTUM's expense ratio is 0.40% a year, according to its prospectus filed April 29, 2026. The SEC's standard example assumes $10,000 invested with a 5% annual return. On that basis, costs come to about $41 after one year, $224 after five years and $505 after 10 years. The average for similar funds is 0.27%. Broader tech funds such as XLK (0.08%) and VGT (0.09%) cost far less.
How has QTUM performed since launch?
QTUM has posted strong returns with big swings. As of December 31, 2025, its average annual return was 36.35% over one year, 22.62% over five years and 23.41% since its September 2018 launch. Its strongest quarter gained 30.89% (ended June 30, 2020). Its weakest lost 19.48% (ended June 30, 2022). From the start of 2026 through October 27, 2026, the share price rose 30.4%.