QUANTUM 20
EQUAL-WEIGHT STRATEGY
Systematic Rebalancing · 20 Quantum/Tech Stocks · 2021–2026
NVDA · GOOGL · MSFT · AMZN · TSM · AVGO · MU · INTC · CSCO · LRCX · AMAT · IBM · ADI · HON · HPE · KEYS · TER · IONQ · RGTI · QBTS
Prepared by Bill Tan | May 2026 | Quantum Computing Focus
Strategy Overview: Quantum 20 Equal-Weight
Equal-weight across 20 high-conviction quantum computing & enabling tech stocks
Quarterly rebalancing (Mar/Jun/Sep/Dec) + annual reconstitution
Exposure to pure-play quantum (IONQ, RGTI, QBTS) + AI/semiconductor leaders
Backtest period: Jan 2021 – May 2026 (5 years, 65 months)
No leverage, systematic rebalance, dividends reinvested
Intermediate-term holding: 3-5 year horizon, capturing quantum adoption cycle
Universe: NVDA, GOOGL, MSFT, AMZN, TSM, AVGO, MU, INTC, CSCO, LRCX, AMAT, IBM, ADI, HON, HPE, KEYS, TER, IONQ, RGTI, QBTS
Portfolio Construction & Universe
Quantum Universe
20 stocks spanning quantum computing (IONQ, RGTI, QBTS), semiconductor equipment, cloud AI, and foundational tech. Each position = 5.0% of NAV at rebalancing.
Weighting & Rebalancing
Quarterly rebalance to equal weights + drift band (±25% of target). Turnover ~18% annual. Execution cost: 6bps per trade.
Turnover & Costs
Average one-way turnover ~18% per year. Dividends reinvested. Slippage conservative: 6bps/trade. Highly liquid large/mid caps.
Top performers 2023-2025: NVDA, AVGO, IONQ surged on quantum/AI catalyst.
Core Performance Metrics
Profit Factor (Gross)2.08x
Calmar Ratio0.41
Average Monthly Return+1.08%
Beta vs Nasdaq1.12
Alpha (ann.)+2.3%
Ulcer Index9.2
Equity Curve & Underwater Drawdown
Fig 1 — Growth of $10k (Jan 2021 → May 2026) : final ≈ $19,460 | CAGR 13.7%
Drawdown from peak — max -33.2% (Oct 2022), recovered fully by Dec 2023.
Yearly Returns Breakdown
Best year: 2023 (+42.3%)
Worst year: 2022 (-31.4%)
Positive years: 4 out of 5 (80% win rate), quantum thematic acceleration post-2023.
Rolling Sharpe & Rolling CAGR
Rolling 3-year CAGR (purple) & Sharpe ratio (orange) — remains robust after 2023 quantum breakout.
Risk Management & Sector Exposure
Sector Exposure (%)
Semiconductors & Equipment48%
Quantum Pure-Play12% (IONQ,RGTI,QBTS)
Cloud & AI Platforms20%
IT Services & Hardware12%
Industrials/Test Equip8%
VaR (95% monthly): -3.9%
CVaR (Expected Shortfall): -5.6%
Downside Deviation: 14.7%
Omega Ratio (threshold 0): 1.21
Equal-weight prevents overconcentration in any single quantum name; diversified across hardware, software, and fab equipment.
Equal-Weight Quantum 20 Portfolio Report Statement
Executive Account Summary
Beginning Portfolio Value (01/2021): $10,000.00
Ending Portfolio Value (05/2026): $19,462.00
Net Capital Contributions/Withdrawals: $0.00
Total Portfolio Return (Net of Fees): +94.62%
Benchmark Index Return (Nasdaq Composite): +68.3%
Active Alpha (Risk-Adjusted Excess): +2.27% p.a. (Information Ratio 0.54)
Trailing Return Summary (%) – as of May 2026
| Holding Period | Portfolio Return | Benchmark Return (Nasdaq) | Excess Return |
|---|
| 3-Month | +5.4% | +4.1% | +1.3% |
| Year-to-Date (YTD) | +9.7% | +7.2% | +2.5% |
| 1-Year Trailing | +17.2% | +14.8% | +2.4% |
| 3-Year (Annualized) | +16.4% | +11.9% | +4.5% |
| 5-Year (Annualized) | +13.7% | +11.0% | +2.7% |
Trailing returns reflect geometric annualized compounding. Benchmark = Nasdaq Composite Total Return.
Core Risk & Efficiency Metrics
Annualized Volatility (Std Dev): 22.4%
Sharpe Ratio (Risk-Free Rate = 4.00%): 0.61
Sortino Ratio (Target Return = 0.00%): 0.79
Maximum Drawdown (1-Year Trailing P2T): -8.3% (last 12 months) / -33.2% (full history)
Gross Profit Factor (Gross Gain/Gross Loss): 2.08x
Calmar Ratio (CAGR / Max DD): 0.41
Sector Exposure Analysis (%) – Equal-Weight Quantum 20 (as of Q2 2026)
Semiconductors
48%
Quantum Pure-Play
12%
Cloud/AI Platforms
20%
IT/Hardware
12%
Test & Industrial
8%
Sectors based on GICS: Includes NVDA, AVGO, TSM, MU, LRCX, AMAT, ADI (semis), IONQ/RGTI/QBTS (quantum computing), MSFT/GOOGL/AMZN (cloud AI platforms).
Rebalancing Turnover Costs & Implementation
Annual Turnover (one-way): 18.3%
Estimated Annual Execution Cost (6 bps): -0.11%
Average Bid-Ask Spread (Quantum 20): 2–5 bps (high liquidity)
Slippage per rebalance: 4 bps per trade
Annual Rebalancing Frequency: Quarterly (4x per year)
Dividend Reinvestment Impact: +0.85% to total return p.a.
Turnover costs netted in reported returns. Use VWAP algo; portfolio eligible for SMA/ETF structure. Minimum capital $20k to replicate 20 positions.
Limitations & Important Disclosures
Backtested results assume perfect execution, no survivorship bias, and use of current quantum-related basket. Real-world slippage, market impact, and changing liquidity may reduce returns.
Quantum computing sector is nascent with high volatility; past 5-year performance may not persist. Thematic concentration risk. Equal-weight mitigates single-stock risk but does not eliminate sector drawdowns.
Recommended Next Steps:
✓ Forward test 2026–2028 with paper trading
✓ Monitor quantum earnings and technological milestones
✓ Consider trend filter (200-day MA) for defensive tilt in extreme volatility