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4 Funds to Shine as Quantum Computing Comes Into Play
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In 1998, the trio, Isaac Chuang of the Los Alamos National Laboratory, Neil Gershenfeld of the Massachusetts Institute of Technology and Mark Kubinec of the University of California at Berkeley created the first quantum computer (2-qubits). Founder David Deutsch said that “Quantum Computing” has the ability to perform several types of calculation at a faster speed than what has been achieved by classical or normal hardware.
How does it work? While traditional computers work on bits (have a value of either zero or one), quantum computing is based on quantum bits or qubits (representing a zero, a one, or both values simultaneously). Hence, this makes information to be processed in ways faster than traditional methods taking advantage of phenomena such as quantum tunneling and quantum entanglement.
In the present time, data holds the key to success of businesses and the plain facts and statistics collected during the operations of a business can be used to measure a wide range of business activities, both internal and external. In fact, data processing only gives businesses the competitive edge to help and guide them and ask more of the right questions.
In practical utility, these machines create vast multidimensional spaces where one can represent very large problems. Once quantum wave interference algorithms are employed, the quantum space translates data back into forms we can use and understand to find a solution.
Though the field at present lacks in pure-play quantum computing companies, several technology giants are already investing million. In fact, The National Aeronautics and Space Administration (NASA) is already using quantum computing, and plans to optimization problems in areas such as air traffic control, autonomy, robotics, navigation and communication, system diagnostics, pattern recognition, anomaly detection, and mission planning and scheduling. NASA’s Quantum Artificial Intelligence Laboratory (QuAIL) is the hub for assessing the potential of quantum computers.
While the concept is new and it is an emerging market, the race for quantum dominance is heating up for sure. Technology bigwigs are working meticulously to bring in quantum computing in logistics, military, pharmaceuticals, aerospace, utilities, artificial intelligence and digital manufacturing. According to The Manomet Current article, the global quantum computing market is expected to reach $1,765 million by 2026, from $472 million in 2021, at a CAGR of 30.2%. In fact, early adoption in the banking and finance sector will boost growth and more companies are expected to focus on adoption of quantum computing-as-a-service (QCaaS) post the pandemic.
4 Tech Funds to Buy
It is true that quantum computing is still in its test and research phase but investors looking to gamble on the next phase of computing will surely be eyeing this sector now.We have, thus, shortlisted four mutual funds that carry a Zacks Mutual Fund Rank #1 (Strong Buy). Moreover, these funds have encouraging year-to-date returns. Additionally, the minimum initial investment is within $5000. We expect these funds to outperform peers in the future.
The question here is why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Fidelity Select Technology Portfolio (FSPTX - Free Report) fund aims for capital appreciation. This non-diversified fund invests primarily in equity securities, especially common stocks of companies that are engaged in offering, using, or developing products, processes, or services that will provide or will benefit significantly from technological advances and improvements.
This Zacks Sector – Tech product has a history of positive total returns for more than 10 years. Specifically, FSPTX that has returned 27.9% and 31.1% in the past three and five years, respectively. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSPTX has an annual expense ratio of 0.69%, which is below the category average of 1.04%. Some of the fund’s top quantum computing players are Google, Nvidia, Microsoft and Micron Technology.
T. Rowe Price Global Technology Fund (PRGTX - Free Report) aims for long-term capital growth. This non-diversified fund invests most assets in the common stocks of companies that its managers expect will generate majority of their revenues from the development, advancement and use of technology.
This Zacks Sector – Tech product has a history of positive total returns for more than 10 years. Specifically, PRGTX has returned 27.4% and 28.4% in the past three and five years, respectively. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
PRGTX has an annual expense ratio of 0.86%, which is below the category average of 1.04%. Some of the fund’s top quantum computing players are Alibaba, Advanced Micro Devices, Micron Technology and NXP Semiconductors.
Franklin DynaTech Fund Class A (FKDNX - Free Report) aims for capital appreciation. The fund invests primarily in common stocks and the fund manager focuses on companies that are leaders in innovation, take advantage of new technologies, have superior management, and benefit from new industry conditions.
This Sector-Tech product has a history of positive total returns for over 10 years. Specifically, FKDNX has returned 25.5% and 26.5% over the past three and five-year period, respectively. To see how this fund performed compared in its category, and other #1 and #2 Ranked Mutual Funds, please click here.
FKDNX has an annual expense ratio of 0.85% versus the category average of 0.99%. Some of the fund’s top quantum computing players are Google, Nvidia, Microsoft and Alibaba.
Fidelity Select Software & IT Services Portfolio (FSCSX - Free Report) aims for capital appreciation. The non-diversified fund invests majority of assets in common stocks of companies engaged in research, design, production or distribution of products or processes that relate to software or information-based services.
This Zacks Sector – Tech product has a history of positive total returns for more than 10 years. Specifically, FSCSX has returned 25.8% and 27.2% over the past three and five-year period, respectively. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSCSX has an annual expense ratio of 0.70% versus the category average of 1.04%. Some of the fund’s top quantum computing players are Microsoft, Google and International Business Machines.
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4 Funds to Shine as Quantum Computing Comes Into Play
In 1998, the trio, Isaac Chuang of the Los Alamos National Laboratory, Neil Gershenfeld of the Massachusetts Institute of Technology and Mark Kubinec of the University of California at Berkeley created the first quantum computer (2-qubits). Founder David Deutsch said that “Quantum Computing” has the ability to perform several types of calculation at a faster speed than what has been achieved by classical or normal hardware.
How does it work? While traditional computers work on bits (have a value of either zero or one), quantum computing is based on quantum bits or qubits (representing a zero, a one, or both values simultaneously). Hence, this makes information to be processed in ways faster than traditional methods taking advantage of phenomena such as quantum tunneling and quantum entanglement.
In the present time, data holds the key to success of businesses and the plain facts and statistics collected during the operations of a business can be used to measure a wide range of business activities, both internal and external. In fact, data processing only gives businesses the competitive edge to help and guide them and ask more of the right questions.
In practical utility, these machines create vast multidimensional spaces where one can represent very large problems. Once quantum wave interference algorithms are employed, the quantum space translates data back into forms we can use and understand to find a solution.
Though the field at present lacks in pure-play quantum computing companies, several technology giants are already investing million. In fact, The National Aeronautics and Space Administration (NASA) is already using quantum computing, and plans to optimization problems in areas such as air traffic control, autonomy, robotics, navigation and communication, system diagnostics, pattern recognition, anomaly detection, and mission planning and scheduling. NASA’s Quantum Artificial Intelligence Laboratory (QuAIL) is the hub for assessing the potential of quantum computers.
While the concept is new and it is an emerging market, the race for quantum dominance is heating up for sure. Technology bigwigs are working meticulously to bring in quantum computing in logistics, military, pharmaceuticals, aerospace, utilities, artificial intelligence and digital manufacturing. According to The Manomet Current article, the global quantum computing market is expected to reach $1,765 million by 2026, from $472 million in 2021, at a CAGR of 30.2%. In fact, early adoption in the banking and finance sector will boost growth and more companies are expected to focus on adoption of quantum computing-as-a-service (QCaaS) post the pandemic.
4 Tech Funds to Buy
It is true that quantum computing is still in its test and research phase but investors looking to gamble on the next phase of computing will surely be eyeing this sector now.We have, thus, shortlisted four mutual funds that carry a Zacks Mutual Fund Rank #1 (Strong Buy). Moreover, these funds have encouraging year-to-date returns. Additionally, the minimum initial investment is within $5000. We expect these funds to outperform peers in the future.
The question here is why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Fidelity Select Technology Portfolio (FSPTX - Free Report) fund aims for capital appreciation. This non-diversified fund invests primarily in equity securities, especially common stocks of companies that are engaged in offering, using, or developing products, processes, or services that will provide or will benefit significantly from technological advances and improvements.
This Zacks Sector – Tech product has a history of positive total returns for more than 10 years. Specifically, FSPTX that has returned 27.9% and 31.1% in the past three and five years, respectively. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSPTX has an annual expense ratio of 0.69%, which is below the category average of 1.04%. Some of the fund’s top quantum computing players are Google, Nvidia, Microsoft and Micron Technology.
T. Rowe Price Global Technology Fund (PRGTX - Free Report) aims for long-term capital growth. This non-diversified fund invests most assets in the common stocks of companies that its managers expect will generate majority of their revenues from the development, advancement and use of technology.
This Zacks Sector – Tech product has a history of positive total returns for more than 10 years. Specifically, PRGTX has returned 27.4% and 28.4% in the past three and five years, respectively. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
PRGTX has an annual expense ratio of 0.86%, which is below the category average of 1.04%. Some of the fund’s top quantum computing players are Alibaba, Advanced Micro Devices, Micron Technology and NXP Semiconductors.
Franklin DynaTech Fund Class A (FKDNX - Free Report) aims for capital appreciation. The fund invests primarily in common stocks and the fund manager focuses on companies that are leaders in innovation, take advantage of new technologies, have superior management, and benefit from new industry conditions.
This Sector-Tech product has a history of positive total returns for over 10 years. Specifically, FKDNX has returned 25.5% and 26.5% over the past three and five-year period, respectively. To see how this fund performed compared in its category, and other #1 and #2 Ranked Mutual Funds, please click here.
FKDNX has an annual expense ratio of 0.85% versus the category average of 0.99%. Some of the fund’s top quantum computing players are Google, Nvidia, Microsoft and Alibaba.
Fidelity Select Software & IT Services Portfolio (FSCSX - Free Report) aims for capital appreciation. The non-diversified fund invests majority of assets in common stocks of companies engaged in research, design, production or distribution of products or processes that relate to software or information-based services.
This Zacks Sector – Tech product has a history of positive total returns for more than 10 years. Specifically, FSCSX has returned 25.8% and 27.2% over the past three and five-year period, respectively. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSCSX has an annual expense ratio of 0.70% versus the category average of 1.04%. Some of the fund’s top quantum computing players are Microsoft, Google and International Business Machines.
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