ETFs to Help Investors Capture Innovative Growth Ideas of Tomorrow – ETF Trends

As we look at some of the future technologies that are shaping the world today, investors can turn to exchange traded fund strategies to capture these growing opportunities.

In the recent webcast, Invest in Tomorrows Disruptive Technology Today, Sylvia Jablonski, CEO and CIO of Defiance ETFs, noted that the global quantum computing market could be worth $949 million by 2025, compared to a global market value of $89 million back in 2016, projecting a growth rate of more than 10 times by 2025.

Jablonski argued that growth will only accelerate in the quantum computing space as the technology matures. For example, the quantum computing growth of quantum computing systems produced by organizations in qubits was only two back in 1998 but has jumped to 128 as of 2019.

Looking ahead, Jablonski estimated a 43% compound growth rate of the quantum computing industry from 2020 through 2030.

Many will continue to adopt the quantum computing algorithm due to its polynomial runtime, which decreases the time needed to solve complex problems. For example, a problem that requires 3,300 years to solve under a classical algorithm with exponential runtime would take only take 11 minutes under a quantum algorithm with polynomial runtime.

Quantum computing is already being applied. The banking and finance sub-segment is expected to have the fastest growth in the global market mainly because of the growing adoption of quantum computing.

To access this growing opportunity, investors can take a look at the Defiance Quantum ETF (QTUM), which offers investors liquid, transparent, and low-cost access to companies developing and applying quantum computing and other transformative computing technologies by tracking the BlueStar Quantum Computing and Machine Learning Index.

Along with quantum computing, Paul Dellaquila, president of Defiance ETFs, highlighted the growth potential of next-generation communication services through 5G networking.

Dellaquila noted that the global 5G services market size was estimated at $64.54 billion in 2021 and is expected to hit around $1.87 trillion by 2030, growing at a CAGR of 44.63% during the forecast period of 2022 to 2030.

Looking ahead, Dellaquila anticipated 5G subscriptions to reach 4.4 billion globally by the end of 2027, or the majority of total global mobile subscriptions. More than 615 million 5G devices have already been shipped in 2021. Additionally, there will be an estimated 1.8 billion 5G connections by 2025, led by Asia and the United States.

Dellaquila also pointed out that 5G applications cover a vast swathe of global segments, including enterprises, consumer, and government sectors.

Investors can turn to something like the Defiance Next Gen Connectivity ETF (FIVG) for liquid, transparent, and low-cost access to companies engaged in the research and development or commercialization of systems and materials used in 5G communications.

In addition, Jablonski highlighted the first inverse blockchain ETF, Defiance Daily Short Digitizing the Economy ETF (IBIT), to serve sophisticated investors by offering a convenient and cost-effective way to short up to 80% of the blockchain ecosystem. IBIT aims to reflect the inverse performance of BLOK, the Amplify Transformational Data ETF, daily. IBIT may help reduce the drawdown of these underlying assets or simply benefit by going long with an ETF that captures the fall of the theme.

Financial advisors interested in learning more about disruptive technologies can watch the webcast here on demand.

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ETFs to Help Investors Capture Innovative Growth Ideas of Tomorrow - ETF Trends

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