The gains in robotics have been anything, but emotionless. One only has to look at exchange-traded fund (ETF) performance from the likes of the Robotics & AI Bull 3X ETF (NYSEArca: UBOT).

“Although the world is still processing the reality of what modern life looks like under threat of a global pandemic, one thing that seems clear to Wall Street is that it will involve far less human contact and a good deal more computerization and automation,” a Direxion Investments “The Xchange” article noted. “Look no further than the performance of the Indxx Global Robotics and Artificial Intelligence Thematic Index (IBOTZNT), which has outperformed the S&P 500 by 35% since the March 16 low.”

“Not coincidentally, the Daily Robotics, Artificial Intelligence & Automation Index Bull 3X Shares ETF (UBOT), has seen particular growth over the past few months,” the article added further. “The daily leveraged ETF, which aims to replicate 300% of the daily performance of IBOTZNT, has grown by more than 130% over the past two months.”

UBOT Chart

UBOT data by YCharts

The top brass in companies are starting to understand the importance of deploying robotic technology thanks to the Covid-19 pandemic.

“Propelling this growth is a heightened awareness among executives, investors, and management teams that contemporary life is permanently and fundamentally changed as a result of the COVID-19 outbreak,” the article said. “For good or ill, the virus has put centuries-old customs and practices that have prevailed in the corporate world under modern scrutiny.”

Traders looking to capitalize on the move to robotics can use 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.

Key fund 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 in order to be eligible for inclusion in the Index.

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