Get Global Exposure to Japan's Robotics Industry With This ETF

There’s no doubt that robotics is going to experience unprecedented growth over the next decade as the world becomes more automated, but certain countries have been leading the charge towards that shift, such as Japan.

“In the area of industrial robotics, Japan has continuously maintained its position as the world’s top exporter of robots in terms of value of shipments and number of operating units. Japan shipped approximately 3.4 billion yen’s worth of robots in 2012, comprising nearly 50% of the global market share,” the University of Tokyo noted. “The number of operating units in Japan was close to 300,000, which was about 23% of the global market share.”

“Japan leads the world in the field of robotics with highly competitive research, development and applied technologies,” the university added. “Further progress is being made in robotics so that Japan can become a creator of new values in monozukuri and services, as well as a base for creating robots that will contribute to the transformation of society.”

Investors looking to get exposure to Japan’s growing robotics industry but who don’t want to concentrate on the country specifically can look at the Global X Robotics & Artificial Intelligence Thematic ETF (BOTZ). The fund includes holdings in Japanese equities focused on robotics as well as artificial intelligence, equating to 38% of the fund as of August 31.

An ETF With High Growth Potential

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, which captures large- and mid-cap representation across 23 developed markets (DM) and 24 emerging markets (EM) countries.

Fund features 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.

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