Thematic ETFs can be hit or miss, depending on the eponymous theme. Thus far, amid social distancing measures implemented by COVID-19, robots are playing an even more vital role in our economy, which is great news for the Global X Robotics & Artificial Intelligence Thematic ETF (NasdaqGM: BOTZ).
A recent Wall Street Journal report noted that there are more than 800 thematic funds in global markets with assets equal to over $183 billion–a number calculated by Morningstar. They also noted that the number of thematic funds equal 150, which has risen by 70 in just the past few years with assets doubling to nearly $40 billion.
Of course, not all of them have had the staying power of BOTZ. The fund 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 fund invests at least 80% of its total assets in the securities of the underlying index. The underlying index is designed to provide exposure to exchange-listed companies in developed markets that are involved in the development of robotics and/or artificial intelligence as defined by Indxx, the provider of the underlying index.
What’s keeping investors interested in BOTZ? How about a 35% year-to-gain despite the pandemic putting the hurt on equities earlier this year.
In the past year, the fund’s churned out a gain of 38% so it’s ability to push through the COVID-19 storm is well-documented. Overall, BOTZ gives investors access to:
- 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.
Simply put, the robotics theme is working. Combined with artificial intelligence, you have a disruptive technology that should continue to thrive well past the pandemic–a good sign for BOTZ.
“It is an exciting time to be in robotics,” a Robotics Business Review article said. “The $100+ billion global robotics sector has been growing by leaps and bounds. Industrial robots are no longer the exclusive domain of heavy industry or huge factories. A new generation of robotics systems, collaborative robots in particular, have expanded the customer base for robots to include mid-sized and even small businesses for manufacturing, materials handling, fulfillment, and beyond.”
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