Quantum investing computing is a technology that captures the imagination of scientists for decades and now seems to be attracting interest from deep-pocketed investors as well. According to research firm Pitchbook, this year alone has seen $2.35 billion in private investment funneled into quantum start-ups, which is more than the three previous years combined. This growing interest in the quantum space has led to the public listing of a handful of companies that make up the nascent quantum sector, including Rigetti, IonQ and D-wave.
For those seeking a more diversified way to invest in quantum computing stocks, there are ETFs such as the Defiance Quantum ETF ($QTUM) that provide exposure to companies working in both quantum and advanced artificial intelligence. The fund currently holds about 70 companies, including those that specialize in data storage and management, cybersecurity, aerospace and aviation, software, semiconductor equipment, electronics and IT services.
Quantum Computing in Finance: Opportunities and Challenges
Investors looking to make the leap into quantum investing should keep in mind that these technologies are still in the early stages of development. Therefore, it is important to conduct thorough due diligence before investing. Additionally, it is recommended that new income investors stick to preferreds with investment grade ratings until they gain sufficient experience to consider higher-risk securities.
Ally Financial (ALLY), for example, has put quantum to work on projects in a variety of areas at the bank, from Monte Carlo simulations to anti-money laundering and compliance issues. The financial organization also partnered with quantum-as-a-service provider Terra Quantum to tackle computational challenges, like exotic derivatives modeling.