It’s obviously been a rough 2020, but out of the ashes came opportunities for financial technology or fintech for short. As such, a pair of ETFs can afford investors opportunities in a space that’s growing exponentially with the Global X Robotics & Artificial Intelligence Thematic ETF (NasdaqGM: BOTZ).and the Global X FinTech ETF (FINX).
On one hand, we have BOTZ, which seeks to invest in companies that potentially stand to benefit from increased adoption and utilization of robotics and artificial intelligence (AI), including those involved with industrial robotics and automation, non-industrial robots, and autonomous vehicles.
Additionally, BOTZ seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Global Robotics & Artificial Intelligence Thematic Index. The index itself captures large and mid-cap representation across 23 Developed Markets (DM) and 24 Emerging Markets (EM) countries.
- High Growth Potential: BOTZ enables investors to access high growth potential through companies involved in the ideation, design, creation, and application of programmable automated devices.
- Unconstrained Approach: BOTZ’s composition transcends classic sector, industry, and geographic classifications by tracking an emerging theme.
- ETF Efficiency: In a single trade, BOTZ delivers access to dozens of companies with high exposure to the robotics and AI theme.
Then there’s FINX, which seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Global Fintech Thematic Index. The underlying index is designed to provide exposure to exchange-listed companies in developed markets that provide financial technology products and services, including companies involved in mobile payments, peer-to-peer (P2P) and marketplace lending, financial analytics software, and alternative currencies, as defined by the index provider.
FINX gives investors exposure to:
- High Growth Potential: FINX enables investors to access high growth potential through companies that are applying technological innovations to disrupt and improve the delivery of financial services.
- An Unconstrained Approach: FINX’s composition transcends classic sector, industry, and geographic classifications by tracking an emerging theme.
- ETF Efficiency: In a single trade, FINX delivers access to dozens of companies with high exposure to the FinTech theme.
An Evolving Industry
Disruptive technology like artificial intelligence and machine learning are affording a wide array of possibilities for fintech. As the industry continues to evolve, ETFs like BOTZ and FINX can stand to benefit.
“The way people interact with finance is evolving. Fintech has offered the possibility to get away from traditional systems’ supposed inaccessibility and move into something more accessible,” a Forbes article said. “2021 will see an increase in autonomous finance. Like the revolution of self-service checkouts in supermarkets, autonomous services in fintech will allow customers greater control over their financial activities. This might be in the form of fully digital account opening, digital signatures, or something entirely different.”
“Both brick-and-mortar banks and fintech companies are adopting AI solutions at increasing rates,” the article added further. “Partly, this may have been spurred on by the pandemic, but it’s a trend we’re increasingly seeing. AI and machine learning solutions are being applied in many business areas, from customer service chatbots to fraud detection, to analyzing the right financial products for a client.”
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