In a recent episode of “Behind the Ticker,” Sylvia Jablonski, CEO & CIO of Defiance ETFs, shared her background in finance and the innovative strategies driving the firm’s success. Jablonski, who has a rich history in sales & trading and a decade of experience with ETFs, decided to join Matt Bielski to help launch Defiance, a company that aims to create ETFs targeting cutting-edge themes. Over the last four and a half years, Defiance has grown significantly, expanding its product lineup to include thematic, income, and leveraged ETFs.
Jablonski discusses the firm’s thematic approach, with a special focus on their quantum computing ETF, QTUM. Launched in 2018, QTUM was ahead of the curve in recognizing the potential of quantum computing, artificial intelligence, and machine learning. Jablonski explains that Defiance worked with Bluestar to construct an index that includes the top companies in quantum computing and AI, from major players like IBM and Hewlett-Packard to smaller, pure-play names like IonQ and D-Wave. The fund offers investors diversified exposure to the key sectors driving these transformative technologies.
The QTUM ETF targets companies that derive at least 50% of their revenue from supercomputing, machine learning, and AI. The fund holds around 70 equally weighted names and is rebalanced semi-annually, providing exposure to both large and small-cap companies. This includes established tech giants like Nvidia and Google, which act as a ballast for the fund, while also capturing the potential high growth of emerging players in quantum computing. Jablonski highlights that quantum computing’s ability to process data exponentially faster than traditional computers can revolutionize industries such as biotech, aerospace, and defense, making QTUM a powerful thematic play for long-term growth.
In addition to discussing QTUM, Jablonski touches on the overall strategy at Defiance, emphasizing the importance of speed, adaptability, and listening to market demands. She explains that Defiance’s ability to be nimble and respond quickly to trends has been key to their success. The firm has also built an in-house marketing and distribution platform, leveraging AI and digital marketing to efficiently promote its ETFs. This unique approach has allowed Defiance to punch above its weight, attracting attention in a competitive market without the extensive budgets of larger issuers.