The hype around the investment theme of artificial intelligence (AI) doesn’t appear to be relenting soon, either as a long-term growth option or a short-term opportunity. Either way, traders can consider playing the trend with the Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X ETF (UBOT).
Global investment firms like Goldman Sachs are re-affirming their faith in AI, which might add to the global economy on a grand scale.
“The implications of the technology are enormous,” a Motley Fool article confirmed. “Indeed, Goldman Sachs says two-thirds of U.S. occupations could be partially automated by generative AI in the coming decade, and doing so could add $7 trillion to the global economy.”
As mentioned, short-term traders can capitalize on the trend as new technologies slowly roll out before they become commonplace. As such, UBOT allows for this trading opportunity.
UBOT seeks daily investment results equal to 200% of the daily performance of the Indxx Global Robotics and Artificial Intelligence Thematic Index. The index aims to provide exposure to exchange-listed companies in developed markets 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 pushback from those threatened by the wider adoption of robots. The fears make sense, given that robotics technology has the capacity to supplant some human jobs to a degree.
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 six months greater than or equal to $2 million in order to be eligible for inclusion in the index.
A Single-Stock ETF Option
Traders who want more targeted exposure to the tech titans that are spearheading the AI movement can use single-stock ETFs. Microsoft, for example, is among the big tech players bolstering their AI capabilities.
For further strength in the software giants, traders can use the Direxion Daily MSFT Bull 1.5X Shares (MSFU). The fund provides an additional 50% more exposure to the stock to allow for profit maximization.
“Microsoft has invested more than $10 billion in OpenAI, and Weiss says that investment will evolve into a $90 billion market opportunity by 2025 as Microsoft embeds generative AI capabilities across its enterprise software products,” Motley Fool reported.
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