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ETF Prime: Defiance Launches First-Ever Autism ETF

The first-ever autism ETF and the continued rise of quantum computing were both in the spotlight on this week’s ETF Prime. Host Nate Geraci welcomed Sylvia Jablonski, chief investment officer of Defiance ETFs, to discuss the firm’s latest launch and one of the market’s top-performing funds. Defiance has grown from roughly $1 billion in total assets in late 2022 to over $13 billion today.Key Takeaways: Defiance’s ASD is the first ETF targeting companies that support individuals with autism. The Defiance Quantum ETF is closing in on $6 billion in assets, up over 80% in the past year. A $2 billion federal quantum computing initiative has added recent momentum to the space. Launched last week, the Defiance Autism Impact ETF (ASD) is the first ETF built to provide exposure to companies developing therapies, diagnostics, and technologies that support individuals with autism and their families. Jablonski described the launch as personally meaningful to the firm. Defiance plans to donate 100% of the fund’s net profits to autism-focused nonprofits during its first two years, and at least 50% of annual net profits in the years that follow. The fund tracks the Autism Impact Index through an index-based structure. Jablonski defended the passive approach as a deliberate choice, arguing that a diversified thematic basket is more effective than attempting to pick individual winners in an early-stage sector.From Autism ETF to Quantum ComputingThe conversation then shifted to the Defiance Quantum ETF (QTUM A+), which is closing in on $6 billion in assets. The fund has returned roughly 40% to 45% year-to-date and more than 80% over the past year. QTUM also holds the distinction of being the first quantum computing ETF to reach the market. A recent tailwind came from the Trump administration, which announced roughly $2 billion in federal funding dedicated to U.S. quantum computing, including a package awarded to IBM. Looking ahead, Jablonski also highlighted upcoming space-related ETF launches timed to capture an anticipated industry IPO, pointing to Defiance’s broader strategy of targeting big themes with precise market timing across its roughly 80-ETF lineup. Wayne Penello, founder and CEO of NextGen EMP, also joined this week’s episode to discuss the Efficient Market Portfolio Plus ETF (EMPB ), a long/short fund-of-funds that uses a proprietary algorithm to identify relative sector strength. The fund is engineered to cap maximum drawdowns at 10% with 95% confidence and has delivered a Sharpe ratio of 2.2 versus the S&P 500’s 0.8 to 0.9. Since inception, it is up over 30%, outperforming the S&P 500 by about 9%, and Penello views the fund as a direct S&P 500 replacement. For more ETF Prime podcast episodes, visit our ETF Prime Content Hub. VettaFi LLC (“VettaFi”) is the index provider for ASD which it receives an index licensing fee. However, ASD is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of ASD.

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