Robotics is disrupting all sectors in all points around the globe. As such, investors who want domestic and international exposure, developed and emerging markets, can look to an ETF like the Global X Robotics & Artificial Intelligence Thematic ETF (NasdaqGM: BOTZ).
Robotics can help fill the void of any talent gaps in sectors where demand outpaces supply, such as manufacturing. According to a report by Deloitte and The Manufacturing Institute, “4.6 million jobs — a mix of new positions and exiting retirees — to fill between 2018 and 2028, with only 2.2 million of them ‘likely’ to be successfully filled. The following is a look at six ways advanced robotics are already picking up the slack.”
“One of the challenges faced by Hitchiner Manufacturing Co. in Milford, N.H., was that newly hired skilled and semi-skilled machine operators often didn’t make it through their first day,” a Robot Report said. “Applying robots saved the company money—around $180,000 per year—and it took people out of the equation for repetitive manufacturing tasks, like placing metal parts in machines for processing or finishing.”
“Part of the savings Hitchiner enjoys comes from lower rates of employee turnover, which can be costly,” the report added. “In one study of manufacturing companies, 43% of respondents indicated their operations were sitting at 20% turnover per year or even higher. Industrial automation can help cut down on that churn and save jobs.”
BOTZ seeks to invest in companies that potentially stand to benefit from increased adoption and utilization of robotics and artificial intelligence (AI), including those involved with industrial robotics and automation, non-industrial robots, and autonomous vehicles.
Additionally, BOTZ seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Global Robotics & Artificial Intelligence Thematic Index. The index itself captures large and mid cap representation across 23 Developed Markets (DM) and 24 Emerging Markets (EM) countries.
Fund benefits:
- High Growth Potential: BOTZ enables investors to access high growth potential through companies involved in the ideation, design, creation and application of programmable automated devices.
- Unconstrained Approach: BOTZ’s composition transcends classic sector, industry, and geographic classifications by tracking an emerging theme.
- ETF Efficiency: In a single trade, BOTZ delivers access to dozens of companies with high exposure to the robotics and AI theme.
Top 10 holdings:
- Nvidia Corp: 8.63%
- Keyence Corp: 7.25%
- Mitsubishi Electric Corp: 7.11%
- Abb Ltd-Reg: 6.98%
- Fanuc Corp: 6.74%
- Intuitive Surgical Inc: 6.53%
- Smc Corp: 5.35%
- Yaskawa Electric Corp: 5.20%
- Omron Corp: 4.98%
- Renishaw Plc: 4.55%
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