As the world gets increasingly more automated, artificial intelligence (AI) will play a crucial role in the long-term growth horizon. Additionally, it offers short-term growth opportunities, which can present traders with leveraged exchange traded fund (ETF) options like the Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X ETF (UBOT).
“In terms of the next 5 years, one of the biggest growth sectors will likely be AI given how transformative the technology could be,” a Yahoo! Finance article noted. “According to Goldman Sachs, generative AI alone could eventually increase global GDP by 7%.”
AI is already a prominent tool used by big tech firms, including cloud-based technologies. Consumers already see a noticeable presence in AI and that trend will continue, which is a catalyst for economic growth.
“The boost to global labor productivity could also be economically significant, and we estimate that AI could eventually increase annual global GDP by 7%,” Goldman Sachs analysts said.
From a numerical perspective, the article mentioned that the 7% reference constitutes $7.11 trillion based on a global GDP of $101.6 trillion in 2022, according to Statista. It’s an alarming size, given that the AI industry is still in its nascent stages of growth.
Lever Up on the AI Industry
Traders looking to capitalize on the move to robotics can use UBOT, which offers leverage to maximize profits. UBOT seeks daily investment results equal to 200% of the daily performance of the Indxx Global Robotics and Artificial Intelligence Thematic Index.
Key characteristics of UBOT:
- The Indxx Global Robotics and Artificial Intelligence Thematic Index (IBOTZNT) is designed to provide exposure to exchange-listed companies in developed markets that are expected to benefit from the adoption and utilization of robotics and/or artificial intelligence, including companies involved in developing industrial robots and production systems, automated inventory management, unmanned vehicles, voice/image/text recognition, and medical robots or robotic instruments, as determined by the index provider, Indxx.
- Companies must have a minimum market capitalization of $100 million and a minimum average daily turnover for the last six months greater than or equal to $2 million in order to be eligible for inclusion in the index.
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