Nvidia's Push for AI Innovation Could Propel This ETF Higher | ETF Trends

Companies that invest heavily in their research and development could be harbingers of expansive growth. In particular, artificial intelligence (AI) investment is driving innovation for the next wave of disruptive technology.

Chip maker Nvidia is doing just that. It’s evolving from its identification as a semiconductor producer and focusing on growing its AI technology to remain competitive in its respective marketplace.

“The demand side of Nvidia research tries to drive demand for Nvidia products by developing software systems and techniques that need GPUs to run well,” said Bill Dally, Nvidia’s chief scientist and senior vice president of research. “We have three different graphics research groups, because we’re constantly pushing the state of the art in computer graphics. We have five different AI groups, because using GPUs to run AI is currently a huge thing and getting bigger. We also have groups doing robotics and autonomous vehicles. And we have a number of geographically ordered oriented labs like our Toronto and Tel Aviv AI labs.”

Playing the Push Towards Innovation

Comprising 11% of its net assets as of April 21, Nvidia’s push towards innovation could help propel the Global X Robotics & Artificial Intelligence Thematic ETF (BOTZ). The fund offers diversified exposure to the AI and robotics industry, investing in equities from various countries beyond just the U.S., including Japan and Switzerland.

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. Once again speaking to the diversity of BOTZ, 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.

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