Count the Global X Robotics & Artificial Intelligence Thematic ETF (NasdaqGM: BOTZ) among the thematic ETFs that could see positive long-term implications amid the array of negativity generated by the coronavirus pandemic.
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.
“The industrial employee of the future, it seems, will be a robot, as manufacturers bring work back to the U.S. following the pandemic,” reports Al Root for Barron’s. “A survey of 200 decision makers conducted by Citigroup analyst Andrew Kaplowitz found that although the coronavirus is delaying plans for factory automation in the near term, it is likely to accelerate the shift away from human workers in the long term.”
BOTZ Bets
Disruptive forces are among us irrespective of which sector one chooses to focus on, and the impact of technology, such as robotics, is just barely scratching the surface. This gives ETF investors the opportunity to jump in on disruptive-focused funds that delve into technology that is transformative.
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.
“Automation can drive ‘reshoring,‘ or bringing back manufacturing work to the U.S. by enabling companies here to compete with places where labor costs are lower. The pandemic has highlighted the value of doing that by exposing the risks of complex supply chains that span the globe,” reports Barron’s.
Robotics and artificial intelligence are making machines smarter and more capable than ever before, allowing robots to take on increasingly sophisticated tasks for faster and more accurate production. Declining computer chip costs and improving connectivity allows for virtually any object to connect to internet-enabled networks, effectively turning anything into a connected device.
Robots are already proving to be useful workaround tools in this new world of social distancing as a result of the coronavirus outbreak. While robotic technology is doing as much as possible now, this is a time researchers can use to learn how to deal with pandemics in the future.
For more on thematic ETFs, please visit our Thematic Investing Channel.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.