Megatrends like robotics and artificial intelligence have proliferated during the pandemic. ETF investors looking to get exposure to this disruptive technology can look to funds like the Global X Robotics & Artificial Intelligence Thematic ETF (BOTZ).
BOTZ seeks to invest in companies that 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 include:
- 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.
- Strong Performance: BOTZ is up almost 60% the past year.
Robots and A.I. Are Truly Taking the Reins
Human capital might be invaluable, but robotics and artificial intelligence are starting to take over. The size of the industrial robotics market is expected to continue growing through 2025, according to data from Statista.
“Thanks to their falling costs, the demand for industrial robots is expected to grow consistently in the coming years, in tandem with the Industrial Internet of Things market,” Statista explained. “The ongoing transformation of traditional manufacturing into Industry 4.0 requires constant innovation and the increasing adoption of cyber-physical systems and automation. The most deployed type of robots in the manufacturing sector include gantry robots, which move along a single axis, and SCARA robots, which are capable of moving along three axes. Among the newest types of robots, exoskeletons aid workers in carrying heavy loads.”
Rising wages in China are expected to help proliferate the use of robotics, particularly in industrial applications.
“Japan, China, the United States, South Korea, and Germany are counted among the five leading industrial robot markets worldwide,” the article added further. “Due to rising wages in China and other emerging markets, the use of a robot workforce is expected to encourage companies based in industrialized countries to move production back to domestic shores.”
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