If we look at some of the future technologies shaping the world today, investors can turn to exchange-traded fund strategies to take advantage of these growing opportunities.
In the last webcast Invest today in the disruptive technology of tomorrowSylvia 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 in 2016, and forecast a growth rate of more than tenfold by 2025.
Jablonski argued that growth in quantum computing will only accelerate as the technology matures. For example, the quantum computing growth of quantum computing systems produced by organizations in qubits was only two in 1998, but has increased to 128 since 2019.
Looking ahead, Jablonski estimated a 43% average growth rate for the quantum computing industry from 2020 to 2030.
Many will continue to adopt the quantum computing algorithm because of its polynomial running time, reducing the time it takes to solve complex problems. For example, a problem that takes 3,300 years to solve under a classical exponential-time algorithm would take only 11 minutes under a polynomial-time quantum algorithm.
Quantum computing is already being used. The banking and finance sub-segment is expected to show the fastest growth in the global market, mainly due to increasing adoption of quantum computing.
To gain access to this growing opportunity, investors can take a look at the Defiance Quantum ETF (QTUM)which provides investors with 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.
In addition to quantum computing, Paul Dellaquila, President of Defiance ETFs, highlighted the growth potential of next-generation communications services through 5G networks.
Dellaquila pointed out that the global market size for 5G services was estimated at US$64.54 billion in 2021 and is expected to reach around US$1.87 trillion by 2030, at a CAGR of 44.63% in the forecast period from 2022 to 2030.
Looking ahead, Dellaquila expects 5G subscriptions to reach 4.4 billion worldwide by the end of 2027, or the majority of all global mobile subscriptions. In 2021, more than 615 million 5G devices have already been shipped. In addition, 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 variety of global segments, including enterprise, consumer and government sectors.
Investors can turn to something like that Defiance Next Gen Connectivity ETF (FIVG) for liquid, transparent and cost-effective 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 Digitize the Economy ETF (IBIT)to serve discerning investors by providing a convenient and cost-effective way to shorten up to 80% of the blockchain ecosystem. IBIT aims to track the inverse performance of BLOK, the Amplify Transformational Data ETF, on a daily basis. IBIT can help mitigate the loss of these underlying assets, or simply capitalize on them by going long with an ETF that tracks the theme’s decline.
Financial advisors interested in learning more about disruptive technologies can view the webcast on-demand here.