Helping investors better capitalize on the moves in the quickly developing robotics, artificial intelligence and automation industry, Direxion has rolled out the first leveraged robotics-related exchange traded fund.
On Thursday, Direxion launched the Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 3X Shares (NYSEArca: UBOT), which has a 1.07% expense ratio.
The Daily Robotics, Artificial Intelligence & Automation Index Bull 3X Shares tries to reflect the 3x or 300% long daily performance of the Indxx Global Robotics and Artificial Intelligence Thematic Index.
“The robotics, artificial intelligence, and automation industries are rapidly growing and evolving,” Sylvia Jablonski, Managing Director at Direxion, said in a note. “The launch of UBOT allows traders to take a bold position in companies that are on the forefront of technology.”
The underlying index is designed to provide exposure to 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.
The Indxx Global Robotics and Artificial Intelligence Thematic Index also serves as the underlying benchmark for the popular Global X Robotics & Artificial Intelligence Thematic ETF (NasdaqGM: BOTZ).
Robotics-related investments provide investor access to an emerging technological theme of the application of robotics and artificial intelligence around the globe. The robotics industry is expected to grow 10% per year, eclipsing $80 billion in market size by 2020. The AI market is expected to reach $5.1 billion by 2020, from just $420 million in 2014.
Related: ETF Trends Robotics & AI Channel
International Data Corporation, for instance, calculated that worldwide spending 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 surge by nearly 57% annually to $58.97 billion by 2025, according to Research and Markets.
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