ETF Research Center

The Defiance Quantum ETF tracks an index of equity securities of leading global companies engaged in the research and development or commercialization of systems and materials used in quantum computing.

FUND BASICS
Category	Global Equities
Fund Sponsor	Defiance ETFs
Website	www.defianceetfs.com
Inception date	Sep 05, 2018
Assets (mns)	$10
Currency	USD
Expense ratio	40 bp
Distributions	Annually

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Tiered
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	78
Wgt avg mkt cap (mns)	$100,638
Large cap (>$10bn)	63.1%
Mid cap ($2-10bn)	22.0%
Small cap (<$2bn)	14.9%
Developed mkts	90.9%
Emerging mkts	9.1%

TOP TEN HOLDINGS
Total	17.3 %
MACDONALD DETTWILER & ASSOC	2.1 %
CLOUDERA, INC.	2.1 %
CIRRUS LOGIC INC	1.9 %
ULTRA CLEAN HOLDINGS	1.7 %
STMICROELECTRONICS NV	1.6 %
NVIDIA CORP	1.6 %
TOWER SEMICONDUCTOR LTD	1.6 %
KLA-TENCOR CORPORATION	1.6 %
LAM RESEARCH CORP	1.6 %
NEC ELECTRONICS CORP	1.5 %

TOP COUNTRY EXPOSURE
	UNITED STATES	60.5 %
	JAPAN	9.3 %
	GERMANY	4.6 %
	NETHERLANDS	3.9 %
	SOUTH KOREA	3.8 %
	TAIWAN	3.8 %
	IRELAND	2.7 %
	ISRAEL	2.7 %
	FRANCE	2.3 %
	SWITZERLAND	1.6 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru November 30)
Year-to-date	1 year	5 years	10 years	Since Incep.
40.2%	28.9%	--	--	11.9%

Market Correlations
versus...	Beta	R-squared
S&P500	1.30	91%
MSCI EAFE	1.56	91%
MSCI Emg. Mkts.	1.22	77%

Technical Indicators
Recent close	$27.67
30d moving avg.	$27.62
Annualized volatility	23.9%
Short interest (ETF)	2.7%
Relative strength (RSI)	64

Liquidity measures
Avg. volume (thou.)	7
Turnover	2.0%
Bid/Ask (% of price)	0.12%
ADV underlying (mns)	$31,576

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Defiance Quantum ETF based on the alternatives' overlap in portfolio holdings with QTUM. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

QTUM

Expense:

40 bp

ALTAR Score™:

6.5%

ALTERNATIVE ETFs BASED ON OVERLAP WITH QTUM
Ticker	Fund Name	Overlap¹ vs QTUM (%)	Expense ratio (bp)	Savings vs QTUM (bp)	ALTAR Score™ (%)	ALTAR vs QTUM (%)
IRBO	iShares Robotics and Artificial Intelligence	30.4	47	-7	2.0	-4.5
JHMT	John Hancock Multifactor Technology	29.7	40	0	6.1	-0.4
RYT	Invesco S&P Equal Weight Technology	29.3	40	0	6.5	-0.0
GDAT	Goldman Sachs Motif Data-Driven World	28.8	50	-10	6.0	-0.5
AIQ	Global X Future Analytics Tech	27.0	68	-28	4.6	-1.9
QTEC	First Trust NASDAQ 100 Tech	25.3	57	-17	6.1	-0.4
SOXX	iShares PHLX SOX Semiconductor	24.2	46	-6	6.1	-0.4
SMH	VanEck Vectors Semiconductors	23.4	35	5	6.4	-0.1
FTXL	First Trust Nasdaq Semiconductor	23.3	60	-20	6.6	+0.1
PSI	Invesco Dynamic Semiconductors	23.2	58	-18	5.9	-0.6
FXL	First Trust Technology Alphadex	22.6	63	-23	5.6	-0.9
BLCN	Reality Shares NASDAQ NextGen Economy	21.7	68	-28	5.6	-1.0
DRIV	Global X Autonomous & Electric Vehicles	21.3	68	-28	7.6	+1.1
IXN	iShares S&P Global Technology	20.9	46	-6	5.4	-1.1
XNTK	SPDR NYSE Technology	20.3	35	5	5.7	-0.8
XSD	SPDR S&P Semiconductors	20.1	35	5	5.1	-1.4
IYW	iShares US Technology	19.9	42	-2	5.3	-1.2
TDIV	First Trust NASDAQ Technology Dividend	19.9	50	-10	6.8	+0.3
VGT	Vanguard Info Tech ETF	19.6	10	30	5.5	-1.0
FTEC	Fidelity MSCI Info Technology	19.6	8	32	5.5	-1.0

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	Defiance Quantum
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

OVERWEIGHT

Above average appreciation potential. A rating of OVERWEIGHT is assigned to ETFs with ALTAR Scores in the 4th quintile (ranking higher than 60%-80%) of their category. Typically, funds in this category consist of stocks trading at attractive valuations and/or having above-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	19.3	%
Divided by: Fwd. P/BV	2.8	x
Less: Expense ratio	40	bp
Equals: ALTAR Score	6.5	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.49	CATEGORY AVERAGE	1.55

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.