The Global X Robotics & Artificial Intelligence Thematic ETF (NasdaqGM: BOTZ) is one of two exchange traded funds offering pure play exposure to the scorching hot robotics and automation investing. BOTZ, which debuted nearly a year ago, is also surging as highlighted by a year-to-date return of over 35%.
BOTZ provides exposure to companies involved in the adoption and utilization of robotics and artificial intelligence (AI), including those involved with industrial manufacturing, medicine, autonomous vehicles, and other applications. The ETF tracks the Indxx Global Robotics & Artificial Intelligence Thematic Index.
BOTZ “is a tight 30-holding portfolio of companies that are expected to benefit from one or both trends. That leads to an industrial-heavy grouping, including 30% exposure to industrial machinery, as well as roughly 11% holdings in both electronic components and electronic equipment and instruments,” reports InvestorPlace.
The ETF competes with the ROBO Global Robotics & Automation Index ETF (NASDAQ: ROBO), the original exchange traded fund dedicated to robotics investing. Earlier this month, it was revealed that ROBO topped $1 billion in assets under management.
ROBO tracks “the ROBO Global Robotics & Automation Index, “which is the brainchild of a team deeply entrenched in the robotics industry who created the innovative methodology,” according to Dallas-based ROBO Global. “The index and subsequent ETF offer investors access to the entire value chain of robotics, automation and artificial intelligence. The ROBO Global Robotics & Automation Index is comprised of 83 global companies from 14 countries in North America, Europe, Asia and the Middle East and offers almost no overlap with traditional equity indices.”
Related: Big Tech ETF – QQQ – Could Surge in September
For its part, BOTZ has done some good work in not even a year of trading. The ETF has already captured nearly $362 million in assets. BOTZ charges 0.68% per year, or $68 on a $10,000 investment.
“International Data Corporation, for instance, said last year that worldwide spend on robotics and related services would balloon from 2015’s $71 billion to $135.4 billion by 2019 — a compound annual growth rate of 17%. Artificial intelligence, while not as large on a nominal basis, is expected to blimp by nearly 57% annually to $58.97 billion by 2025, according to Research and Markets,” reports InvestorPlace.
Japan and the U.S. combine for over two-thirds of the ETF’s country allocations. Other prominent country exposures include Switzerland and the U.K.
For more information on the tech sector, visit our technology category.