D-Wave Stock Surge Boosts QTUM, Quantum Computing ETFs

D-Wave Quantum Inc. (QBTS) shares jumped over 25% on Tuesday after the company announced the general availability of its Advantage2 quantum computer, sparking gains across quantum-focused ETFs.

The strong stock movement highlights the growing interest in quantum computing technologies that promise to solve problems beyond the capabilities of traditional computing systems, potentially creating new opportunities for ETF investors seeking exposure to this emerging technology sector.

The Palo Alto-based company's Tuesday announcement marks its sixth-generation quantum computer, containing more than 4,400 superconducting qubits. According to the company release, the system delivers a 40% increase in energy scale and a 75% reduction in noise compared to previous versions.

"It's an engineering marvel, with substantial technical advancements that highlight D-Wave's progress in scaling quantum technology," said D-Wave CEO Alan Baratz in the company's announcement.

The stock surge created ripple effects across the quantum computing landscape. According to CNBC, other quantum companies, including Quantum Computing Inc. (QUBT) and Rigetti Computing Inc. (RGTI) jumped over 10% and 5%, respectively, following the news.

QTUM Sees Quantum ETF Performance Boost

The Defiance Quantum ETF (QTUM), which holds D-Wave as its largest position at 5.2% of assets, rose almost 2% Tuesday following the announcement, according to FactSet data. QTUM has surged 21.2% over the past month while managing $1.2 billion in assets, according to FactSet.

QTUM has attracted $20.8 million in net inflows over the past month and $382.6 million year to date, reflecting growing investor interest in the space, FactSet data show.

Among other funds with quantum computing exposure, the SPDR S&P Software & Services ETF (XSW) also holds D-Wave at 1.4% of its portfolio. According to FactSet data, XSW has seen $3.1 million in inflows over the past month despite being down about 3.8% year to date. This broader tech fund also includes Quantum Computing at 1.6%, Palantir Technologies Inc. (PLTR) at 1% and Strategy Inc. (MSTR) at 1%.

Meanwhile, the actively managed Main Thematic Innovation ETF (TMAT) includes D-Wave at 1.2% of its portfolio alongside other technology innovators like Palantir at 4.4%), Nvidia Corp. (NVDA) at 3.8% and Broadcom Inc. (AVGO) at 2.7%, according to FactSet. TMAT has outperformed the other funds with a 22.8% gain over the past month.

QTUM vs. XSW vs. TMAT—Source: FactSet

The quantum announcement comes amid debate about the timeline for practical quantum applications, according to CNBC. Nvidia CEO Jensen Huang previously suggested that useful quantum computers might be 15 years away, comments he later walked back. D-Wave's Baratz had publicly disagreed with Huang's assessment, telling CNBC that Huang was "dead wrong" about quantum computing.

For investors seeking exposure to quantum computing innovation, these ETFs offer varying approaches to the sector. QTUM provides the most direct exposure with its quantum-focused mandate, while XSW offers broader software sector diversity and TMAT provides active management across multiple technology themes.

D-Wave, which went public in 2022, counts Japan Tobacco, Los Alamos National Laboratory and Jülich Supercomputing Center among its early Advantage2 prototype users. The company reports that customer use of its systems has more than doubled in the last six months.