1 Global X Robotics Artificial Intelligence Thematic ETF NASDAQ BOTZ
BioTech ETF Risks
As previously mentioned, the biotech industry is extremely volatile andunpredictable.While there may be massive potential upside in some names, it is oftendifficult to separate the winners from the losers.That is why we recommend investing in a biotech ETF if you are interested inthe space.A biotech ETF will provide you with the narrow exposure to secure gains in theindustry while maintaining diversification.
iShares Global Tech ETF
The iShares Global Tech ETF seeks to track the investment results of an indexcomposed of global equities in the technology sector. The Fund seeksinvestment results that correspond to the performance of the SP GlobalInformation Technology Sector Index.
iShares Exponential Technologies ETF
The iShares Exponential Technologies ETF seeks to track the investment resultsof an index composed of developed and emerging market companies that create oruse exponential technologies.
Global X Robotics & Artificial Intelligence Thematic ETF
The Global X Robotics and Artificial Intelligence ETF seeks to provideinvestment results that correspond generally to the price and yieldperformance, before fees and expenses, of the Indxx Global Robotics andArtificial Intelligence Thematic Index.
ROBO Global Robotics and Automation Index ETF
The ROBO Global Robotics and Automation Index ETF (the Fund) seeks to provideinvestment results that, before fees and expenses, correspond generally to theprice and yield performance of the ROBO Global Robotics and Automation Index(the Index).
5. Global X Robotics & Artificial Intelligence Thematic ETF (BOTZ)
GlassdoorThe BOTZ ETF invests most of its assets in securities that are part of theIndxx Global Robotics & Artificial Intelligence Thematic Index.It invests in companies involved in areas such as robotics, automation,artificial intelligence, and autonomous vehicles. Its holdings includeIntuitive Surgical (ISRG), Mitsubishi Electric (TYO:6503) and Nvidia (NVDA).Number of investors: 16,932Ranking on Robinhood: 88Source: Global X* * *
Robotics and Artificial Intelligence
The advancements made by the scientific and engineering community has turnedArtificial Intelligence (AI) and robotics from science fiction to reality.Though we don’t have human-like robots like those depicted in movies,intelligent machines are now a part of our daily lives.Think about advanced drones that are capable of surveillance, tracking, andoffensive measures- aren’t such machines highly-intelligent robots? What aboutautomated assembly lines in industrial plants that can handle themanufacturing and packaging of goods on its own?Sophisticated machines that are capable of working with minimal humanintervention are sophisticated robots too. Driverless cars are yet anotherexample of AI and robotics. With tech giants like Google, Tesla, and BMWinvolved in the production of driverless cars, it looks like we are going tosee self-driving cars sooner than we may have expected.While the concept of Robotics and AI sounds exciting, it is not without flaws.Many people believe that the implementation of robotics and AI will lead tomass layoffs and unemployment. We have already seen how factory workers losttheir jobs when automated assembly lines were introduced. Now, with driverlesscars, intelligent chatbots, and more knocking at the door, it may turn outthat drivers and customer support agents are going to have a hard time keepingtheir jobs.
Tech ETFs to Buy: ARK Autonomous Technology & Robotics ETF (ARKQ)
Source: ShutterstockExpense Ratio: 0.75% per year, or $75 on an initial $10,000 investmentThe ARK Autonomous Technology & Robotics ETF is comprised of companies thatmay develop, produce or enable autonomous transportation, robotics andautomation, 3D printing, energy storage and space exploration.ARKQ currently includes 38 holdings. The top ten account for approximately 50%of total net assets. Its top five companies are Tesla (NASDAQ:TSLA), 2U(NASDAQ:TWOU), Xilinx (NASDAQ:XLNX), Materialise (NASDAQ:MTLS) and Proto Labs(NYSE:PRLB).Year-to-date, the fund is up about 50%. In fact, ARKQ recently hit an all-timehigh. However, it is important to note that Tesla’s weighting within this ETFis 9.9%. Therefore, daily moves in TSLA affect the price of ARKQ. 2U has alsocontributed to the growth of the fund so far in the year as global demand fore-learning solutions is on the rise.If you are looking to invest in disruptive innovation for the long run, youmay want to research ARKQ further. In case of a price decline toward $50,long-term investors may find better value in the fund.
Tech ETFs to Buy: Global X Robotics & Artificial Intelligence ETF (BOTZ)
Source: ShutterstockExpense Ratio: 0.68%The Global X Robotics & Artificial Intelligence ETF invests in companies thatstand to benefit from increased adoption and of robotics and AI. Suchbusinesses may include those involved with industrial robotics and automation,non-industrial robots and autonomous vehicles. The fund tracks the IndxxGlobal Robotics & Artificial Intelligence Thematic Index.BOTZ currently includes 31 holdings. The top ten make up approximately 60% oftotal net assets, which stand close to $1.7 billion. This top group holdsNvidia (NASDAQ:NVDA), Intuitive Surgical (NASDAQ:ISRG) and Brooks Automation(NASDAQ:BRKS). One perk of this fund is that it provides exposure to non-U.S.markets.So far in the year, BOTZ is up about 24%. In case of short-term selling in thefund, long-term investors may consider buying the dips, especially if theprice goes toward or even below $25. While the role of technology becomesincreasingly important, I expect BOTZ to perform well in the future.
1. Global X Robotics & Artificial Intelligence Thematic ETF (NASDAQ:BOTZ)
Assets under management (AUM): US$1.64 billionFirst on our artificial intelligence ETFs list is the Global X Robotics &Artificial Intelligence Thematic ETF. It offers exposure to firms involved inthe global automation and robotics industries.According to ETF.com, the Global X Robotics ETF was launched in September2016, and has holdings in various markets, including technology, healthcareand energy. Eligible companies are listed in developed countries and must earna significant portion of their revenue from, or have a stated business purposein, the fields of robotics or artificial intelligenceThe ETF currently tracks 32 holdings, including Intuitive Surgical(NASDAQ:ISRG) and NVIDIA (NASDAQ:NVDA).
2. Robo Global Robotics and Automation Index ETF (ARCA:ROBO)
AUM: US$1.275 billionThe Robo Global Robotics and Automation Index ETF, launched in October 2013,was the first robotics and automation ETF to market. As its name suggests, itfollows companies involved in those sectors.Robo Global currently tracks 87 companies, and its top two holdings are SMC(TSE:6273) and Vocera Communications (NYSE:VCRA).
4. iShares Robotics and Artificial Intelligence ETF (ARCA:IRBO)
AUM: US$162.89 millionThe next AI ETF on our list is the iShares Robotics and ArtificialIntelligence ETF, which is relatively new — the fund came into being in June2018. It tracks an index composed of 102 developed and emerging marketcompanies that could benefit from long-term growth in robotics technologiesand artificial intelligence. The fund has the lowest expense ratio of the AIfunds on this list at 0.47 percent.Some of the ETF’s top holdings include DouYu International Holdings(NASDAQ:DOYU), Advanced Micro Devices (NASDAQ:AMD), HUYA (NYSE:HUYA) and Apple(NASDAQ:AAPL).