Investing in technology might seem a no-brainier with ever growing share prices of technology stocks such as amazon and google. But what about investing in emergent technology such as quantum computing and allied technologies. We illustrate some easy ways to get traction in the quantum computing space and invest in what may turn out to be one of the most important industries of the future.
Lofty valuations are seen for companies ranging from AMD to Zynga, but could investor now begin to look more closely at the Quantum Computing space as a new investing territory? We certainly think so, and here we will cover two very easy ways to invest in quantum computing the easy way. The first way will be to assemble some of the top companies with exposure to quantum computing and the second will be to purchase an ETF fund (we’ll explain later if you don’t know).
As Quantum Computing gets more mainstream, we will look at how “the main the street” can gain exposure to quantum computing as an investment.
Investing in Listed Technology Companies
The following companies are all investing and researching in Quantum Computing. By investing with these companies you can gain exposure, albeit small exposure to their investments in the quantum field. The following companies are all involved in Quantum Computing in some way shape or form and its likely you have heard of them as many are household names – and you are likely to have interacted or bought their products. The below stocks should not been seen as exhaustive, but are some of the firm favourites in our portfolio that we have invested in.
|Company Name||Market Cap ($) (August 2020)||Ticker||Quantum Developments|
|IBM||109 Billion||IBM||Working for a number of years on fundamental hardware and software and was the first to release a cloud based Quantum Experience. Involved in the development of the open source Qiskit language.|
|Microsoft||1544 Billion||MSFT||Created a new language Q# and integrated with Visual Studio. Software only, but heavy push into tooling and integration with Hardware providers.|
|1046 Billion / 1050 Billion||GOOG/GOOGL||Announced quantum supremacy back in 2019. Actively involved in Quantum Hardware and Software development via the Open Souce Cirq language|
|Amazon||1522 Billion||AMZN||Amazon has created a service which aims to be the AWS of the Quantum Sphere. The Braket service allows users to run quantum circuits on Rigetti or IonQ hardware.|
|Honeywell||104 Billion||HON||Honeywell in the middle of 2020 announced the world most powerful Quantum Computer.|
|Intel||204 Billion||INTC||Intel is working on building quantum hardware. Intel’s third-generation Tangle Lake quantum processors contain 49 superconducting qubits.|
Investing in a Quantum Tracker Fund
Instead of buying individual stocks and paying commission for each stock buying one stock means only one commission which can offer access to potentially hundreds or thousands of stocks for that single commission.
The Defiance Quantum ETF (Exchange Traded Fund) is a way to buy exposure to quantum companies and allied companies all in one. As is common for sectors such as Technology, Media, Finance or generally anything you can group together. Often referred to as an Exchange Traded Fund or ETF, there is one such Tracker that covers Quantum Computing. Aptly named QTUM, the company called Defiance launched the QTUM fund to focus on two somewhat related key areas: Quantum Technology and Machine Learning. The fund has today (7th Jan 2020) 84 different stocks in its portfolio ranging from Apple to Xilinx and was launched towards the end of 2018. It currently trades on the NYSE and is available to invest in for US based individuals or those with a foreign trading account. So far since inception the return has been around 24% (not a bad return). Of course the future may not be so kind.
You can read more on QTUM with our guide to the Quantum Tracker and we even give a basic run-down of the performance (but that of course depends when you look). For more ideas on investing in Quantum Computing, look to our previous articles: How to Invest in Quantum Computing.
This article is not financial advice and should not be considered as such. Always take professional financial advice before acting on any new information.