Microsoft (MSFT) has created a buzz in the investment world with the unveiling of its pioneering quantum chip, Majorana 1. As excitement grows surrounding this advancement, exchange-traded funds (ETFs) with exposure to quantum computing and semiconductor technologies are attracting increased investor attention. Investors looking to capitalize on the quantum computing revolution can consider several ETFs that offer exposure to key players in this emerging field.
Defiance Quantum ETF (QTUM) provides exposure to companies involved in quantum computing, artificial intelligence (AI), and machine learning. The ETF is well-positioned to benefit from rapid advancements in quantum technology, with holdings that include Microsoft, IBM (IBM), and Alphabet (GOOG, GOOGL).
Sylvia Jablonski, CEO of Defiance ETFs, highlighted how Majorana 1 has already boosted investor interest in QTUM. “The good thing about that ETF is it holds the large-cap, quality, balance-sheet-established players like MSFT but mixes in pure plays like IonQ and Rigetti as well.”
Global X Artificial Intelligence & Technology ETF (AIQ) invests in companies at the forefront of AI and computational advancements, including Microsoft. Given the crucial role quantum computing plays in the evolution of AI, this fund could see increased investor interest.
VanEck Semiconductor ETF (SMH) The ETF is focused on semiconductor companies and includes exposure to firms developing quantum computing hardware. Nvidia (NVDA), Qualcomm (QCOM), and Broadcom are among its top holdings. Since quantum computing relies on cutting-edge semiconductor technology, improvements in this sector could indirectly benefit the ETF.
Jablonski offered her perspective on the implications of Microsoft’s quantum computing breakthrough, emphasizing its significance for ETFs in this space. Satya Nadella, Microsoft’s Chairman and CEO, described the chip as a significant “physics and fabrication breakthrough” rather than a pure leap in quantum computing. He compared it to the crucial “transistor moment” of quantum computing, a milestone that could pave the way for the technology’s practical application.
Jablonski reinforced this view, noting, “He’s saying that we are at a key inflection point where quantum computing transitions from being experimental to practical and scalable. It reminds me of the ChatGPT moment.”
Jablonski believes that Microsoft’s breakthrough could have lasting implications, saying, “Microsoft’s breakthrough accelerates quantum error correction and scalability. It could lead to sustained confidence in the sector. When you have quality companies like Alphabet, Microsoft, and IBM blessing these innovations, that bodes well for the consumer and his or her sentiment on the quantum sector.”
According to Jablonski, the QTUM ETF effectively balances risk and reward. “We have both—having the large caps serves as a ballast for risk on volatility on the small caps.”
Jablonski anticipates practical applications emerging sooner than some skeptics expect. “Microsoft’s error correction claims, if validated, represent significant progress. Quantum computing is already used in certain workflows, risk analysis, supply chain, and logistics cases.”
Beyond quantum computing, AI-driven ETFs are witnessing strong momentum, especially in automation, robotics, and generative AI. “We also think that 6G and the future of tech connectivity will be a big topic this year,” Jablonski noted.
Although challenges like elevated error rates and commercialization hurdles still limit the immediate applications of quantum computing, Microsoft’s Majorana 1 chip signifies a major step forward. By offering a diversified approach to investments in this field, ETFs enable investors to position themselves to profit from the quantum computing revolution while mitigating the risks associated with individual stocks.
