Related
news
12 November 2026
What do the letters in fund names mean and which version should I pick?7 min readAuthor12 November 2026
Are ETFs always cheaper? Ongoing charges and trading costs explained7 min readAuthor
Shares Magazine
Quantum computing has the potential to tackle problems that even today’s most powerful computers struggle to solve.
While it is still early days, some industry observers believe quantum computing has crossed a commercial inflection point.
The biggest applications include drug discovery, materials science, financial modelling, cybersecurity and supply chain optimisation.
According to consultancy McKinsey the quantum computing industry generated a combined $1 billion of revenues in 2025 and this total is projected to reach $4.4 billion by 2028.
To give an idea of recent investor demand, there have been four major IPOs (initial public offerings) in 2026 US led by Quantinuum which raised $1.68 billion, valuing the company at $15.7 billion.
Other public listings include Xanadu Quantum Computing which raised $302 million and Infleqtion, while European developers IQM and Pasqal also entered the public arena via mergers with existing listed companies.
Like all leading-edge technologies it is virtually impossible to pick the winners who can turn the science into sustainably profitable enterprises. In this article, we look at ways to get passive, diversified exposure to the theme.
What is quantum computing?
Quantum computers are not simply faster versions of ordinary computers. One way to think about the difference is to picture a coin. Regular computers think like flat coins, they can be either heads or tails and to solve a problem, the computer must try one path at a time.
Quantum computers think like a spinning coin, which means it could be heads or tails at the same time. Because the coin exists in multiple states, the computer can solve a problem by looking at every single path at the same time.
This advantage means quantum computers are very good at finding the perfect combination out of millions of possibilities. They can simulate how molecules interact to discover new cures faster or design brand new materials like longer-lasting electric car batteries.
Quantum computers can create unbreakable codes to protect digital privacy.
Bear in mind that the most successful companies will not necessarily be those developing quantum computers, but could extend to hardware makers, software developers, cloud computing providers and established businesses that use the technology to solve real world problems.
How to invest passively using ETFs
There are quantum computing focused ETFs designed to give investors exposure to companies operating in quantum computing, although the degree of specific quantum computing exposure can vary substantially.
Specialist quantum-computing ETFs typically invest across companies involved in the wider ecosystem including hardware, software and related technologies.
Bear in mind that portfolio holdings can include smaller, volatile businesses and some holdings may have limited quantum computing-related revenues.
The largest ETF with assets of around £600 million is the VanEck Quantum Computing UCITS ETF which seeks to track the MarketVector Global Quantum Leaders index.
The index is comprised of around 30 companies spanning pure play quantum innovators as well as major global technology firms.
The fund invests in large technology companies like Microsoft and Amazon as well as smaller pure play quantum computing companies like IonQ, and D-Wave Quantum.
The portfolio is comprised of 31 holdings with more than half of the fund invested in the US and 20% invested in Japan including holdings in NTT and Fujitsu. Unsurprisingly the fund is heavily exposed to the technology sector which accounts for around 62% of the portfolio.
While going down the route of investing in specialist quantum computing funds provides a level of diversification which reduces the risk of picking the wrong companies, it cannot eliminate the risk that the theme itself disappoints.
Who are the leading pure-play companies?
The sector has been in the doldrums with share prices languishing at 12-month lows. This is despite a short-lived boost from the US Department of Commerce announcing a package of funding targeting quantum computing stocks in 2026.
None of the pure-play companies have yet reached sufficient scale to generate profitability.
The largest listed quantum company by market value is IonQ which was established in 2015 based on scientific breakthroughs licensed from University of Maryland and Duke University.
The company generates revenues from selling remote cloud-based access to its general purpose trapped-ion quantum computers. It also earns revenue from professional consulting and application-specific co-development services.
Quatinuum was created through the merger of Honeywell Quantum Solutions and Cambridge Quantum Computing.
The company provides an integrated platform comprised of hardware, middleware as well as software application layers like InQuanto for chemistry and Quantum Origin for cybersecurity.
D-Wave Quantum generates revenues from customers paying for access to D-Wave machines as a service, whole system sales and consulting fees helping customers to build applications.
Rigetti Computing designs and manufactures superconducting quantum processors (hardware to run computers) using electronic circuits from materials like niobium and aluminium.
First half bookings totalled $35.5 million driven by a $20 million quantum system sale to Florida Atlantic University. Its backlog of remaining performing obligations increased to $40.7 million with just over half expected to be recognised over the nest 12 months.
What are the risks of investing of quantum computing?
Quantum computers offer a potentially different way of performing certain mathematical calculations. In theory, this could allow some operations to be completed using fewer computational steps.
This means that while quantum computing has the potential to improve artificial intelligence and the development of large language models, it is unlikely to replace traditional computing anytime soon.
A 2026 research paper in Proceedings of Machine Learning Research argues that practical advantages of quantum computing still face substantial obstacles which may take decades to overcome.
As ever in investing, it is important to fully understand what you own and the commercial realities that need to happen to justify current valuations.
Martin Gamble: Shares and Markets Writer
Martin Gamble is Shares and Markets writer at AJ Bell. He was previously the Education Editor of Shares Magazine. He has been with the business since 2019.
Martin graduated from the University of Kent in...