Quantum ETFs and Baskets Explained: What They Hold, What They Cost
What an ETF is
An exchange traded fund, or ETF, is a fund whose shares trade on a stock exchange during the day. It holds a basket of other investments, so one purchase gives you a slice of many companies. A thematic ETF picks its basket around an idea, such as quantum computing. The fund charges a yearly fee called the expense ratio, taken out of the fund's assets, so you never get a separate bill. None of this is financial advice, and this page recommends no fund.
The best known example: QTUM
The Defiance Quantum ETF, ticker QTUM, is the fund most articles mean when they talk about a quantum ETF. Its issuer's own fund page, with fund details as of October 8, 2026, shows:
- Expense ratio: 0.40 percent gross.
- Number of holdings: 90.
- Net assets: about 5,701 million dollars.
- Index tracked: the BlueStar Machine Learning and Quantum Computing Index.
- Inception: September 4, 2018.
What is actually inside
This surprises many beginners. The issuer's page of top holdings as of October 9, 2026 lists Global Unichip Corp at 2.35 percent, Horizon Quantum Holdings at 1.88, Elastic at 1.81, Cloudflare at 1.80, Hewlett Packard Enterprise at 1.80, Palantir at 1.76, Nutanix at 1.70, Snowflake at 1.65, Arqit Quantum at 1.63 and Advanced Micro Devices at 1.59. Most are not quantum hardware makers. The index covers companies with products and services related to quantum computing or machine learning, so it includes chipmakers, cloud and data software firms and a few quantum specialists. A quantum ETF is therefore closer to a technology basket with a quantum flavor than a pure bet on quantum computers. If you want the pure-play names, see the company list.
Concentration, in two directions
Funds can be concentrated in a few ways. With QTUM, the top ten holdings each sit between about 1.6 and 2.4 percent, which means no single stock dominates. Defiance's own page still warns that the fund is non-diversified, that information technology stocks are vulnerable to rapid product cycles, and that quantum applications are still in the exploration stage and may not produce returns in the near future. Spreading across 90 names reduces single company risk but not the risk that the whole theme falls out of favor. In January 2025, the Defiance Quantum and AI ETF fell about 4 percent on a day when single quantum stocks dropped more than 30 percent. That illustrates both sides: a basket cushions the fall, and it also dilutes the rise. See the news day examples.
A basket you build yourself
Some people also hold a handful of individual quantum stocks as their own basket. The same questions apply: how many names, how big each position is, and how much is in the same theme. A hand-built basket is rarely more diversified than a fund unless you spread across industries.
What to check in any fund
- Index and rules: what gets included, how often it is reviewed, and how weights are set.
- Fee: the expense ratio, plus any trading cost.
- Top holdings and how many are real quantum businesses.
- Size and trading volume: tiny funds can be harder to trade.
- Overlap: if you already own big tech funds, a thematic fund may repeat those same names.
- Risk section of the fund's documents, not the marketing page.
Funds are not tokens
ETFs hold regulated shares of companies. The QNT memecoin is a separate, independent token with no link to any fund or to Quantinuum Ltd. Do not mix them up, and read the memecoin versus company guide and the risk factors.
Sources and further reading
- Defiance ETFs: QTUM fund page (fund details as of 10/08/2026, top holdings as of 10/09/2026)
- CNBC via NBC 7: quantum stocks plunge after Nvidia's Huang comments (January 8, 2025)
- CNBC via NBC LA: Nvidia CEO and the March 2025 quantum sell-off
- SEC: Beginners' Guide to Financial Statements
Reported as of 2026-10-09. Filings and fund pages change, so check the original documents.
Frequently asked questions
Is QTUM a pure quantum computing fund?
No. Its top holdings include chip, cloud and data software companies, because the index covers quantum computing and machine learning related businesses.
How much does QTUM cost?
The issuer's page shows a 0.40 percent gross expense ratio as of October 8, 2026. Check the page for the current figure.
Why do holdings counts differ between websites?
Sites record data on different dates and count differently. The issuer's page is the best source, and you should note its date.
Is the QNT memecoin in a quantum ETF?
No. The QNT memecoin is an independent token and is not held by any such fund.
Keep reading
- Quantum Computing Companies to Know (and Not to Confuse)
A neutral overview of well-known quantum computing companies and what approach each takes, plus how they differ from a memecoin. - Why Quantum Valuations Swing So Much on News
Why quantum company values can jump or drop on a single announcement, and how to read the swings calmly. - Quantum IPOs and SPACs Explained: How Quantum Companies Go Public
How quantum companies reach public markets: the Quantinuum Ltd Nasdaq IPO, Pasqal's SPAC, and what the two routes mean in plain English. - Memecoin Risk Management: Basic Rules to Protect Your Money
Simple, educational rules for managing risk when trading memecoins: sizing, fees, scams and emotions. Not financial advice.
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