The Defiance Quantum ETF QTUM is back in the spotlight after a wave of tech stocks surged on news that the U.S. government plans to award roughly $2 billion in grants for next-generation quantum and semiconductor technologies under the CHIPS and Science Act.
The rally added fresh momentum to quantum computing-focused ETF QTUM, just weeks after the fund crossed $4 billion in assets under management and earned a 5-star Morningstar rating. The ETF has become a go-to vehicle for investors looking to bet on quantum computing, artificial intelligence, advanced semiconductors, and the infrastructure that powers them all.
Shares of International Business Machines Corporation IBM, the largest recipient of the proposed funding package, jumped 12% on Thursday's close after the company confirmed it would work with the U.S. government to develop America's first purpose-built quantum foundry. Smaller quantum firms posted even sharper gains: D-Wave Quantum Inc. QBTS soared 33%, and Rigetti Computing, Inc. RGTI climbed 30%. Other quantum-linked stocks, including IonQ, Inc. IONQ and Quantum Computing Inc. QUBT, also rallied sharply.
On Friday, the momentum continued. QTUM was up 2.6%, while IBM gained 3%. Meanwhile, QBTS, RGTI, IONQ, and QUBT were up 15%, 18%, 6.7%, and 14.2%, respectively.
QTUM's Growth Reflects Rising Appetite For Frontier Tech
Quantum computing is shifting from a speculative research theme toward a strategic investment category tied to AI infrastructure, national security, and advanced manufacturing. And QTUM is tracking it. The fund invests in companies involved in quantum hardware, machine learning, semiconductors, cloud computing, and enabling technologies that support next-generation computing systems. It has benefited from growing institutional participation and sustained inflows as investors look beyond traditional software-heavy tech benchmarks.
"Investors are increasingly rethinking what constitutes core technology exposure," Sylvia Jablonski, Chief Investment Officer of Defiance ETFs, said when the ETF surpassed $4 billion in AUM in April.
The latest government funding announcement could further strengthen that investment thesis. IBM said the proposed $1 billion Commerce Department incentive would support a new standalone company called Anderon, which plans to operate a 300-millimeter quantum wafer foundry in Albany, New York. IBM will match the government award with an additional $1 billion investment. The company estimates the quantum industry could generate as much as $850 billion in economic value by 2040.
Semiconductor ETFs Could See Spillover Benefits
While QTUM remains the clearest ETF play on the quantum theme, the announcement also boosted sentiment around semiconductor and AI infrastructure investments more broadly. Funds such as the VanEck Semiconductor ETF SMH and the iShares Semiconductor ETF SOXX could benefit from rising investment in advanced chip fabrication and quantum-related manufacturing capacity.
The funding package also signals that the U.S. government is expanding its industrial policy focus beyond traditional semiconductors into frontier computing technologies, potentially creating a longer-term tailwind for ETFs tied to AI infrastructure, robotics, cloud computing, and quantum development.
