Robots have been doing an extraordinary job during the coronavirus outbreak from disinfecting public areas to assisting medical staff with patient monitoring without the risk of infection. However, because of their effectiveness, the continuous topic of whether robots can replace humans has only heightened.
“Two years ago, I argued that many of the jobs with direct customer contact would likely not be automated as customers value personal contact,” wrote Johannes Moenius in MarketWatch. “However, COVID-19 is a human tragedy, and research has shown that those affected severely will permanently change their behavior. This means that certain customers at any time and almost all customers at certain times will value avoiding personal contact. That changes the mix of preferences and restaurant offers substantially.”
“As especially large companies consider rehiring, they will think twice whether a particular job can be done by a machine,” Moenius added. “Robots are getting more capable by the hour and cheaper by the minute. Cost advantages are going to be reinforced by risk perception. Advantage robot.”
From an ETF investor’s standpoint, the increased move towards automation can only help funds like the Robotics & AI Bull 3X ETF (NYSEArca: UBOT). 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.
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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