BOTZ allocates about 23% of its weight to industrial machinery makers and over 23% of its combined weight to electronic equipment and healthcare equipment makers. BOTZ is also a play on the weak yen because Japanse stocks account for more than 47% of the ETF’s weight, more than double its allocation to U.S. stocks.
The yen slid nearly 8% last month and the Japanese economy grew at a faster-than-expected 2.2% pace in the third quarter, its third straight quarter of expansion. The growth was driven by exports, which increased 2% compared to the prior quarter. With the Japanese yen now depreciating against the U.S. dollar, export growth may continue to expand.
“Robotics and artificial intelligence research and development is growing, and products will likely begin to hit consumer markets by the end of the decade – at least in the automotive space. You can expect this industry to witness huge deals in the near future and provide opportunities you may not be able to find anywhere else. Aside from consumer tech, robotics and AI are playing an increasing role in manufacturing automation, energy production and so much more,” adds Seeking Alpha.
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