Artificial intelligence (AI) is already revolutionizing the transportation sector, putting a pair of Direxion Investments’ leveraged exchange-traded funds (ETFs) on notice for traders to consider.

From driverless applications to inter-connectivity between drivers, AI is already changing how goods are transported from A to B.

“Smart infrastructure driven by new vehicle technology and autonomous driverless truck and drone ships will change how cargo moves,” a Forbes article explained.

“As the Internet of Things (IoT) continues to connect everything from courier drivers wearing smart uniforms and smartwatches to driving smart vehicles, on smart roads with intelligent signage where every container, pallet, package are all AI and IoT sensor connected, these new capabilities are changing how decisions are made, what routes to take, how fleets are managed where packages, products, and cargo flow,” the article added further.

Two Leveraged Plays to Consider

If traders are feeling bullish impulses on this AI movement, one fund to consider is the Robotics & AI Bull 3X ETF  (UBOT), which seeks daily investment results equal to 300 percent of the daily performance of the Indxx Global Robotics and Artificial Intelligence Thematic Index. This is designed to provide exposure to exchange-listed companies in developed markets that are expected to benefit from robotics and/or artificial intelligence adoption and utilization.

The robotics space is certainly in a push-pull dichotomy of investors capitalizing on the latest in disruptive technology while at the same time getting push back from those threatened by the wider adoption of robots. The fears are warranted given that robotics technology has the capacity to supplant human jobs.

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 6 months greater than, or equal to, $2 million to be eligible for inclusion in the Index.

UBOT Chart

UBOT data by YCharts

Another fund to trade is the Direxion Daily Transportation Bull 3X Shares (TPOR), which seeks daily investment results equal to 300 percent of the daily performance of the Dow Jones Transportation Average. The index measures the performance of large, well-known companies within the transportation industry.

The transportation industry can be a harbinger of an improving economy. The more goods being shipped, the better the overall economy is looking.

TPOR Chart

TPOR data by YCharts

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