As we look at some of the future technologies shaping the world today, investors can turn to ETF strategies to seize these growing opportunities.
In the last webcast, Invest in tomorrow’s disruptive technology todaySilvia Jablonsky, CEO and CIO of Defiance ETFs, indicated that the global quantum computing market could be worth $949 million by 2025, compared to a global market value of $89 million in 2016, which predicts a growth rate of more than 10 times by 2025.
Jablonsky argued that growth will only accelerate in quantum computing as the technology matures. For example, quantum computing growth for enterprise-produced quantum computing systems in qubits was only two in 1998 but has jumped to 128 as of 2019.
Looking ahead, Jablonsky estimated a compound growth rate of 43% in the quantum computing industry from 2020 through 2030.
Many will continue to adopt the quantum computing algorithm due to its polynomial runtime, which reduces the time required to solve complex problems. For example, a problem that takes 3300 years to solve under a classical algorithm with an exponential runtime might take only 11 minutes under a quantum algorithm with a polynomial runtime.
Quantum computing is already being implemented. The banking and financial sub-sector is expected to have the fastest growth in the global market mainly due to the increasing adoption of quantum computing.
To access this growing opportunity, investors can take a look at Defiance Quantum ETF (QTUM)which provides investors with liquid, transparent, and low-cost access to companies developing and implementing quantum computing and other transformational computing technologies by tracking the BlueStar Quantum Computing and Machine Learning Index.
Besides quantum computing, Paul Delakilla, President of Defiance ETFs, highlighted the potential for growth of next-generation connectivity services through 5G networks.
Delacila indicated that the global 5G services market size is estimated at $64.54 billion in 2021 and is expected to reach about $1.87 trillion by 2030, with a compound annual growth rate of 44.63% during the forecast period from 2022 to 2030.
Looking to the future, Delacila expects 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. In addition, there will be an estimated 1.8 billion 5G connections by 2025, led by Asia and the United States.
Delacila also noted that 5G applications cover a vast area of global sectors, including businesses, consumers and government sectors.
Investors can resort to something like Defiance Next Gen Connectivity ETF (FIVG) Liquid, transparent, and cost-effective access to companies involved in research, development or commercialization of systems and materials used in 5G communications.
Additionally, Jablonsky highlighted the first blockchain inverted ETF, Defiance Daily Shortitizing the Economy ETF (IBIT)To serve seasoned investors by offering a convenient and cost-effective way to shorten up to 80% of the blockchain ecosystem. IBIT aims to reverse the inverse performance of BLOK, the Amplify Transformational Data ETF, daily. IBIT may help reduce the decline of these underlying assets or benefit simply by entering into a buy-to-order deal with the ETF that picks up the subject’s fall.
The opinions and opinions expressed here are those of the author and do not necessarily reflect the views and opinions of Nasdaq, Inc.