The autonomous technology and robotics themes fit the bill as disruptive technologies and both have been receiving increased attention in 2019. Additionally, plenty of ETFs address these investment concepts, but a case can be made that few do it as well as the ARK Autonomous Technology & Robotics ETF (NYSEARCA: ARKQ).
ARKQ, an actively managed ETF that’s more than five years old, is known in large part for having one of the largest weights to Tesla (11.58%) among all ETFs and that makes sense given Tesla’s autonomous vehicle footprint. However, there’s much more to this ETF.
ARKQ captures the converging industrial and technology sectors, capitalizing from autonomous vehicles, robotics, 3D printing, and energy storage technologies. That wide mandate helps lever the ARK fund to much more than just self-driving cars, an important trait at a time of rapid robotics advancements.
Investors are always on the lookout for a long-term growth opportunities, but now more than ever, it seems prescient to look beyond the immediate noise of the socioeconomic and political headlines and find investment opportunities for the long-haul. Emerging technologies may offer that growth, according to some experts.
Robotic Opportunities
Just look at the opportunities in robotics process automation (RPA).
“What is propelling this segment of the tech market is a realization in the enterprise world that RPA really can handle mundane tasks and free up people to focus on other areas of the business,” reports Silicon Angle. “Companies are using RPA to process invoices and generate price comparisons, but the expectation is that RPA will move inexorably into medical, pharmaceuticals, and even the public sector.”
With Xilinx (NASDAQ: XLNX) and Nvidia (NASDAQ: NVDA) among its top 10 holdings, ARKQ also offers more than adequate artificial intelligence exposure.
Artificial intelligence is gaining widespread attention for its ability to be a disruptive technology that spans across a variety of sectors.
Related: These Two Thematic ETFs Could Intersect in 2020
Disruptive technology is not relegated to certain sectors as it will permeate into all industries in some form or fashion. For example, augmented reality is technology comprised of digital images superimposed over the real world, and its use is primed to drive industry growth–industries like real estate and manufacturing are already putting the technology to use in a variety of ways.
Over the past three years, ARKQ outpaced the largest robotics ETF by 1,850 basis points.
For more on disruptive technologies, visit our Disruptive Technology Channel.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.