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Robotics Fund Grows in Emerging Sector

The Global X Robotics & Artificial Intelligence ETF (BOTZ) seeks to invest in companies that potentially stand to benefit from increased adoption and utilization of robotics and artificial intelligence (AI).

Specifically, industrial robotics and automation, non-industrial robots and autonomous vehicles are among the products and applications the companies targeted by BOTZ are pursuing. This exchange-traded fund (ETF) gives investors market-cap selected, cross-sector and weighted exposure to companies involved in the production of robots and the development of AI.

Eligible companies are listed using the Indxx Global Robotics & Artificial Thematic Index and must earn a significant portion of their revenue from or have a stated business purpose in robotics or AI. This field includes varied applications from the development of drones to health care robots and predictive analytics software. Viewed through traditional sector classification systems, BOTZ leans heavily towards industrials and technology.

The fund’s top holdings include Keyence Corp. (OTCMKTS:KYCCF), Mitsubishi Electric Corp. (OTCMKTS:MSBHY), Intuitive Surgical, Inc. (NASDAQ:ISRG), Fanuc Corp. (OTCMKTS:FANUY) and ABB Ltd. (NYSE:ABB). Although BOTZ is heavily weighted in technology and industrials, its other top sectors are health care, energy and basic materials.

Chart courtesy of StockCharts.com

The ETF has $1.75 billion assets under management, an average spread of 0.05 percent and 34 holdings. With an expense ratio of 0.68 percent, it is relatively expensive to hold in comparison to other funds.

To sum up, BOTZ enables investors to access high-growth potential through companies involved in the design, creation and application of programmable automated devices. The fund’s composition transcends sector, industry and geographic classifications by tracking an emerging theme, although the ETF also is heavily weighted toward certain segments.

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As a reminder, investors should conduct their own due diligence to decide whether this ETF is suitable for their portfolio. Investors also should ensure the ETF’s potential volatility fits within their level of risk tolerance.

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.

Jim Woods

Jim Woods is a 20-plus-year veteran of the markets with varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor. Jim is the editor of Intelligence Report, Successful Investing, the Bullseye Stock Trader, and The Deep Woods (formerly the Weekly ETF Report). His books include co-authoring, “Billion Dollar Green: Profit from the Eco Revolution,” and “The Wealth Shield: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse.” He’s also ghostwritten many books and articles, as well as edited content for some of the investment industry’s biggest luminaries. His articles have appeared on many leading financial websites, including StockInvestor.com, InvestorPlace.com, Main Street Investor, MarketWatch, Street Authority, Human Events and many others. Jim formerly worked with Investor’s Business Daily founder William J. O’Neil, helping to author training courses in the CANSLIM stock-picking methodology. The independent firm TipRanks rates Jim the No. 3 financial blogger in the world (out of more than 6,000). TipRanks calculates that, since 2012, he's made 361 successful recommendations out of 499 total, earning a success rate of 72% and a +15.3% average return per recommendation. He is known in professional and personal circles as “The Renaissance Man,” because his expertise includes such varied fields as composing and performing music; Western horsemanship, combat marksmanship, martial arts, auto racing and bodybuilding. Jim holds a BA in philosophy from the University of California, Los Angeles, and is a former U.S. Army paratrooper. A self-described “radical for capitalism,” he celebrates the virtue of making money from his Southern California horse ranch.