Look for More Robots to Thrive in a Post-COVID World

The rise of robots during the pandemic was apparent in countries like China, the original epicenter of the virus, where robots were used to treat patients in place of doctors in order to curb the number of coronavirus cases. As more global economies start to open their doors, it will be robots that will continue to thrive, which makes the case for robotics-focused exchange-traded funds (ETFs).

Nowadays, it’s not only the capabilities of the technology but the speed at which it can be implemented.

“Software that used to take months or years to develop is being deployed in days and weeks,” said Ben Stein, general manager of developer experience at Twilio, in a Silicon Angle article. “Even companies that hadn’t planned to undergo digital transformation are viewing this period as a proof of concept.”

One rising area of robotics is the use of chatbots—with social distancing measures in place, chatbots have been able to serve as the point of contact for customer service centers.

“Chatbots and other humanlike information aids have been picking up the slack at call centers decimated by absences and disease, with notable success,” the Silicon Angle article said. “Among recent converts are the World Health Organization and Centers for Disease Control, both of which have adopted chatbots to field millions of queries. Many government websites are doing the same thing”.

Traders looking to capitalize on the move to robotics can use Direxion Daily Robotics Artificial Intelligence & Automation Index Bull 3X Share (UBOT) as a tool. UBOT seeks daily investment results equal to 300 percent of the daily performance of the Indxx Global Robotics and Artificial Intelligence Thematic Index, which 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.

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 $100million and a minimum average daily turnover for the last 6 months greater than, or equal to, $2 million in order to be eligible for inclusion in the Index.

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THEMATIC ETF RESOURCES