The Global X Robotics & Artificial Intelligence ETF (BOTZ) isn’t churning out an almost 50% gain year-to-date for nothing. The ETF operates in a space that’s not only benefiting from the technological requirements brought on by the current pandemic, but the field of robotics itself is expected to grow exponentially over the next five years.
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. BOTZ seeks to invest in companies that potentially stand to benefit from increased adoption and utilization of robotics and artificial intelligence (A.I.), including those involved with industrial robotics and automation, non-industrial robots, and autonomous vehicles.
BOTZ gives investors:
- 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 A.I. theme.
BOTZ is already pushing past its 50- and 200-day moving average with the relative strength index (RSI) showing a move to overbought territory. Traders looking to get in may want to keep an eye on that RSI level and whether selling takes place by year-end profit takers.
For the long-term investor who doesn’t care about price action, BOTZ will be a prime play as more companies, including big tech utilize robotics and A.I.
Exponential Growth Ahead for Robotics
A Seeking Alpha article by Michael Fitzsimmons referenced a MarketsandMarkets research report that said:
“The global artificial intelligence market size was valued at US $39.9 billion in 2019 and is expected to grow at a compound annual growth rate (‘CAGR’) of 42.2% from 2020 to 2027. The continuous research and innovation directed by the tech giants are driving the adoption of advanced technologies in industry verticals, such as automotive, healthcare, retail, finance, and manufacturing.”
The Googles and Amazons of the world are already locked in a battle of who can utilize disruptive tech like A.I. to the fullest extent in their business models, which can only boost the space even further. As of 11/30, Nvidia is the fund’s top holding at 8.4%. The company is one of the leaders in creating processing units that are able to handle the data processing capabilities of A.I.
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