The Global X Robotics & Artificial Intelligence Thematic ETF (NasdaqGM: BOTZ) celebrated its one-year anniversary earlier this month and did so in style. BOTZ is up more than 44% year-to-date, but that is not the only reason to celebrate this ETF.
As has been widely documented, investors are embracing the robotics investment theme, a trend that is benefiting BOTZ in significant fashion. BOTZ tracks the Indxx Global Robotics & Artificial Intelligence Thematic Index.
“According to data from ETF.com, by reaching $450m, BOTZ has become one of just eight ETFs launched since January 1, 2016 to achieve this milestone,” according to a statement issued by New York-based Global X. “BOTZ has seen accelerated growth in recent months, with Global X announcing on June 12, 2017 that BOTZ had reached $100m in assets by the end of May.”
BOTZ provides exposure to companies involved in the adoption and utilization of robotics and artificial intelligence (AI), including those involved with industrial manufacturing, medicine, autonomous vehicles, and other applications.
As of Sept. 18th, BOTZ had nearly $510 million in assets under management, up from about $176 million at the end of the second quarter. The ETF holds 30 stocks.
“BOTZ offers investors access to a rapidly emerging technological theme of the application of robotics and artificial intelligence around the globe,” according to Global X. “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.
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BOTZ is a global ETF with over 46% of its holdings being Japanese companies and another 23% being U.S. firms. Switzerland, the U.K. and Israel combine for over 20% of the ETF’s weight. BOTZ charges 0.68% per year, or $68 on a $10,000 investment.
While the robotics & AI revolution is a long term theme that we believe will continue to play out over decades, industries across the globe are already embracing these technologies. Industrial manufacturing was among the first sectors touched by this burgeoning technology, but health care, defense, agriculture, and consumer products are all starting to adopt robotics and AI at an increasingly rapid pace,” said Jay Jacobs, director of research at Global X, in the statement.
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