Is Quantum Computing the New A.I.?

Schwab Network
5 Apr 202408:07

TLDRIn this discussion, Sylvia Jablonski, Chief Investment Officer at Defiance ETFs, talks about the Quantum ETF, launched in 2018, which focuses on AI, machine learning, and quantum innovation. She highlights the importance of the ecosystem around AI, including graphics, supercomputing, and cybersecurity. Jablonski also addresses the inclusion of MicroStrategy in the fund despite its heavy involvement in crypto, explaining the fund's rebalancing strategy. She emphasizes the role of semiconductors in AI and quantum computing, suggesting that thematic ETFs like Quantum and 5G offer good diversification in tech investments.

Takeaways

  • 😀 The discussion revolves around the intersection of quantum computing, AI, and technology ETFs.
  • 📈 Sylvia Jablonski, Chief Investment Officer at Defiance ETF, discusses the performance and composition of quantum ETFs.
  • 🚀 Quantum ETFs were launched in 2018 to provide investment opportunities in AI, machine learning, and quantum innovation.
  • 💡 The ETF includes a diverse range of companies involved in AI ecosystem, such as graphics, supercomputing, and cybersecurity.
  • 🌐 Companies like IBM, Nvidia, AMD, and MicroStrategy are part of the ETF, highlighting the broad tech landscape covered.
  • 🔄 The fund is rebalanced quarterly to maintain equal weighting among its constituents, mitigating risks from individual stock performance.
  • 📊 Despite MicroStrategy's heavy involvement in Bitcoin, it is considered an AI company due to its machine learning endeavors.
  • 💹 The ETF has seen a 33% increase in the last year, reflecting the growth in AI and related technologies.
  • 💼 The ETF contains a significant portion of semiconductor stocks, acknowledging their crucial role in AI and quantum computing.
  • 🔬 Supercomputing is identified as essential for AI to process large amounts of data, with quantum computing offering potential advancements.
  • 📱 The discussion also touches on 5G ETFs, which are seen as the next generation of connectivity, supporting AI and technological advancements.

Q & A

  • What is the main topic of discussion in the video?

    -The main topic of discussion in the video is the intersection of quantum computing, AI, and investment opportunities in the tech ETF world.

  • What is the significance of quantum ETFs in the context of AI and machine learning?

    -Quantum ETFs are significant because they provide an investment avenue for people to participate in the growth of AI, machine learning, and quantum innovation, which are seen as key drivers of future technological advancements.

  • Why did the chief investment officer at Defiance ETF launch a quantum ETF in 2018?

    -The chief investment officer launched a quantum ETF in 2018 because they believed it was the best way to invest in AI, machine learning, and quantum innovation, anticipating these areas to be the future winners in technology.

  • Which companies are mentioned as being part of the AI ecosystem in the discussion?

    -Companies mentioned as part of the AI ecosystem include Nvidia, AMD, IBM, and MicroStrategy, among others.

  • How does the presence of MicroStrategy in the quantum ETF relate to its association with Bitcoin?

    -MicroStrategy is included in the quantum ETF because it is fundamentally an AI company, despite its heavy involvement with Bitcoin. Its inclusion is part of a diversified strategy, and its Bitcoin holdings do not define the entire fund's focus.

  • What is the rebalancing strategy for the quantum ETF mentioned in the video?

    -The quantum ETF is rebalanced on a quarterly basis to maintain equal weighting among its components. This strategy ensures that no single company's performance disproportionately affects the fund.

  • Why are semiconductor companies considered important for the future of AI and quantum computing?

    -Semiconductor companies are crucial for the future of AI and quantum computing because they provide the necessary chips and hardware to power the processing and data handling required for these advanced technologies.

  • How does the concentration of the NASDAQ index affect the performance of thematic ETFs like quantum computing?

    -The concentration of the NASDAQ index can impact the performance of thematic ETFs if they are heavily weighted towards a few large-cap companies. However, thematic ETFs like quantum computing aim for diversification and may outperform if smaller and larger caps start to participate more actively in the AI innovation trend.

  • What is the role of 5G in the context of the technological advancements discussed in the video?

    -5G is seen as the next generation of connectivity technology that will support the advancements in AI, machine learning, and quantum computing by providing lower latency and enhanced communication capabilities, which are essential for these technologies to function effectively.

  • How has the performance of the quantum ETF been over the past year according to the discussion?

    -The quantum ETF has performed well, with a return of about 33% in the last year, indicating a positive trend in the investment in AI, machine learning, and quantum computing sectors.

Outlines

00:00

💡 AI and Quantum ETFs in Tech Innovation

The discussion starts with the host, Oliver, introducing Sylvia Jablonski, the Chief Investment Officer at Defiance ETFs. Sylvia discusses the popularity of their Quantum ETF, launched in 2018, which focuses on AI, machine learning, and quantum innovation. She explains that the ETF includes companies involved in the broader AI ecosystem, such as graphics, supercomputing, cybersecurity, and data storage and processing. The conversation highlights the importance of chip companies like Nvidia, AMD, and others in the AI space. Sylvia also touches on the rebalancing of the ETF quarterly to maintain equal weighting among its components, which currently include 71 names. The discussion also briefly addresses the inclusion of MicroStrategy in the fund, despite its heavy involvement in crypto, as it is fundamentally an AI company. The ETF's performance is noted, with a 33% increase in the last year, and the significance of semiconductors in AI's future growth is emphasized.

05:00

📡 The Role of 5G in Advancing Tech Innovations

In the second paragraph, the conversation shifts to the role of 5G technology in the next generation of connectivity, which is crucial for the advancement of AI and other tech innovations. Sylvia explains that 5G is integral to enabling low-latency communications, which is necessary for smart cities and other technological advancements. The discussion suggests that 5G will play a significant role in supporting the infrastructure needed for AI's continued growth, including machine learning and supercomputing. The segment also briefly touches on the evolution of 5G towards 6G and the importance of investing in thematic ETFs that focus on these areas for long-term performance and diversification in the tech sector.

Mindmap

Keywords

💡Quantum Computing

Quantum computing refers to the use of quantum bits or 'qubits' to perform computations. Unlike classical bits that can be either 0 or 1, qubits can exist in multiple states simultaneously, which allows for the processing of large amounts of data much faster than traditional computers. In the context of the video, quantum computing is seen as a key technology that will drive advancements in AI and machine learning, as it can handle complex computations required for these fields.

💡AI

Artificial Intelligence (AI) is the field of computer science that focuses on creating machines capable of performing tasks that would typically require human intelligence. In the video, AI is discussed as a transformative technology that is already driving innovation and is expected to be further enhanced by advancements in quantum computing and other related technologies.

💡ETF

An Exchange-Traded Fund (ETF) is a type of investment fund and exchange-traded product that is traded on a stock exchange. ETFs are designed to track the performance of a specific index, sector, commodity, or asset class. In the script, the discussion revolves around a quantum ETF, which is an investment vehicle that allows investors to gain exposure to companies involved in quantum computing and related technologies.

💡Machine Learning

Machine learning is a subset of AI that gives computers the ability to learn and improve from experience without being explicitly programmed. It is a key technology in AI, enabling systems to make data-driven decisions and predictions. In the video, machine learning is mentioned as an area that will benefit significantly from the computational power of quantum computing.

💡Supercomputing

Supercomputing refers to the use of high-performance computing systems to solve complex computational problems that are beyond the capacity of a typical computer. It is crucial for tasks such as climate modeling, molecular dynamics simulations, and cryptography. The video mentions supercomputing as an essential component for processing the vast amounts of data required by AI and quantum computing applications.

💡Cybersecurity

Cybersecurity is the practice of protecting systems, networks, and programs from digital attacks. It is a critical aspect of technology, especially as AI and quantum computing become more prevalent, as they can be used to enhance security measures or as targets for cyberattacks. In the video, cybersecurity is highlighted as a part of the broader ecosystem that supports AI and quantum technologies.

💡Data Storage and Processing

Data storage and processing involve the collection, management, and analysis of large volumes of data. These are fundamental to AI and quantum computing, as they require efficient ways to handle and analyze data. The video script discusses the importance of data storage and processing in the context of AI innovation and the role of companies that specialize in these areas.

💡Semiconductors

Semiconductors are materials that have electrical conductivity between that of a conductor and an insulator. They are the foundation of modern electronics, including chips used in computers and other digital devices. In the video, the importance of semiconductors is emphasized, as they are essential components in the hardware that supports AI, quantum computing, and supercomputing.

💡MicroStrategy

MicroStrategy is a company mentioned in the video, which is known for its business intelligence software but has also become heavily involved in cryptocurrency, particularly Bitcoin. The video discusses the company's inclusion in an ETF, highlighting the intersection of AI, technology, and cryptocurrency investments.

💡5G

5G is the fifth generation of mobile networks, promising faster data transfer rates, lower latency, and better connectivity. It is seen as a critical technology for enabling the next wave of digital innovation, including AI and IoT. The video script mentions 5G as part of the broader technological advancements that will support AI and quantum computing by providing the necessary infrastructure for data transmission and communication.

Highlights

Quantum ETF was launched in 2018 to invest in AI, machine learning, and quantum innovation.

The ETF includes companies like Nvidia, AMD, and others that are key players in the AI ecosystem.

The fund also covers areas like graphics, supercomputing, cybersecurity, data storage, and processing.

Companies such as IonQ, Rigetti, and IBM are part of the quantum and AI space within the ETF.

MicroStrategy, known for its Bitcoin holdings, is also considered an AI company within the fund.

The fund is rebalanced quarterly to maintain equal weighting among its components.

The ETF has seen a 33% increase in the last year, outperforming the S&P 500.

Semiconductors make up a significant portion of the ETF, reflecting their importance in AI and quantum computing.

The fund's strategy includes a mix of well-established companies and smaller caps for diversification.

Quantum computing is seen as a key technology for the future of AI and machine learning.

Supercomputing is essential for processing large amounts of data quickly, which is crucial for AI.

The ETF's composition is designed to provide exposure to the broader tech innovation beyond just AI.

The fund's performance is tied to the innovation trends in AI, machine learning, and quantum computing.

Market concentration at the index level can impact the performance of thematic ETFs like the quantum ETF.

The ETF aims to provide a diversified investment in the tech sector, including AI and quantum computing.

The 5G ETF is another fund focused on the next generation of connectivity technology.

5G technology is seen as a foundational element for advancements in AI, smart cities, and other tech innovations.