First Trust Joins the Artificial Intelligence, Robotics ETF Fray | ETF Trends

First Trust Advisors has come out with its own artificial intelligence and robotics-related exchange traded fund to help investors gain exposure to the growth of innovative cutting-edge technology.

First Trust recently launched the First Trust Nasdaq Artificial Intelligence and Robotics ETF (NasdaqGM: ROBT), which has a 0.65% expense ratio and is also the cheapest A.I. and Robotics ETF on the market. The lower expense ratio may be a way for the fund provider to better compete against other options in the space as the company comes late into the robotics and A.I. theme.

First Trust Nasdaq Artificial Intelligence and Robotics ETF will try to reflect the performance of the Nasdaq CTA Artificial Intelligence and Robotics Index, which is comprised of companies engaged in the artificial intelligence and robotics segments of the technology, industrial and other economic sectors, according to a prospectus sheet.

“It is clear that the growing advances in AI and Robotics, while still in early days, are increasing the rate and impact of change,” Dave Gedeon, Vice President and Head of Product Development for Nasdaq’s Global Indexes, said in a note. “The Nasdaq CTA Artificial Intelligence and Robotics Index is a new way to benchmark the performance of the companies leading the charge in this dynamic sector.”

To be included in the index, companies must classified as A.I. or robotics engagers, enablers or enhancers, as determined by the Consumer Technology Association. Specifically, enablers refers to companies that develop the building block components for robotics or A.I., such as advanced machinery, autonomous systems/self-driving vehicles, semiconductors, and databases used for machine learning. Engagers are comprised of companies that design, create, integrate, or deliver robotics and/or AI in the form of products, software, or systems. Lastly, enhancers cover a group of companies that provide their own value-added services within the AI and robotics ecosystem, but which are not core to their product or service offering.