The BOTZ Are Coming. But So Are Investing Gains | ETF Trends

The Global X Robotics & Artificial Intelligence Thematic ETF (BOTZ) is up 60% within the past year and one of its top holdings, Japanese robot maker Fanuc Corp, just boosted its profit forecast, citing an increased demand in electric cars.

BOTZ 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.

Fund benefits:

  • 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.
  • An 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.

BOTZ Chart

Fanuc Raises Its Profit Forecast

Fanuc Corp is benefiting from signs of a recovering auto industry. Furthermore, growing demand for electric vehicles caused the company to raise its annual profit forecast by 24%.

“The Japanese supplier is commonly seen as a bellwether for industrial demand and credited customers in information technology along with EV makers buying factory automation equipment, robots and robo-machines for the increase in forecast,” a Bloomberg article explained. “The auto industry, which was particularly hard-hit by the novel coronavirus outbreak last year, started showing signs of recovery in the fourth quarter that have translated into component supply shortages at the start of 2021.”

If that doesn’t provide enough tailwinds for BOTZ, U.S. President Joe Biden is pushing to increase the use of electric vehicles as part of his clean energy agenda.

“Reason for EV optimism has also been provided by new U.S. President Joe Biden, who said he wanted to replace the federal government’s vehicle fleet with electric cars and has signaled a much stronger commitment to combating climate change than his predecessor,” the article added.


For more news and information, visit the Thematic Investing Channel.