Potential Profits Exist in the World of Robotics

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker, financial journalist, and money manager.

“The real problem is not whether machines think but whether men do.” — B. F. Skinner

While robots have long held sway in the domain of science fiction, their role in the automation of jobs formerly performed by humans has cast a specter over the world’s developed economics and will remain a salient political and economic question for a long time to come.

On the other hand, the disruptive innovation driven by the “Fourth Industrial Revolution” also has given new opportunities for investors. For instance, the ARK Autonomous Robotics ETF (BATS: ARKQ) provides investors with exposure to companies around the world that will benefit from new scientific advancements in the areas of energy, materials, transportation, automation and manufacturing.

One of the most crucial differences between ARKQ and its most direct competitor Robo Global Robotics and Automation Index ETF (NYSE: ROBO) is that while ROBO generally focuses on companies that develop or benefit from automation, most of the companies in ARKQ’s portfolio are involved with the fields of autonomous transportation, robotics and automation, 3D printing, energy storage and space exploration.

The ARK Invest fund’s top holdings include Elon Musk-led Tesla Inc. (NASDAQ: TSLA), Stratasys Ltd. (NASDAQ: SSYS), Proto Labs, Inc. (NYSE: PRLB), Materialise NV-ADR (NASDAQ:MTLS), Xilinx, Inc. (NASDAQ:XLNX), NVIDIA Corporation (NASDAQ: NVDA) and AeroVironment, Inc. (NASDAQ: AVAV).

This fund’s performance has been solid in both the short run and the long run. As of Jan. 27, ARKQ is up 2.38% for the past month and 14.19% over the past three months. It currently is up 3.58% year to date.

Exclusive  Massive Options Trading Is Manipulating the Market

The fund has $183.81 million in assets under management and an expense ratio of 0.75%, meaning that it is more expensive to hold in comparison to other exchange-traded funds (ETFs).


Chart courtesy of www.StockCharts.com.

In short, while ARKQ does provide an investor with a chance to profit from the world of autonomous robotics, the sector may not be appropriate for all portfolios. Thus, interested investors always should conduct their own due diligence and decide whether the fund is suitable for their investing goals.

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.

Like This Article?
Now Get Jim's FREE Special Report:
The Top 11 Dividend ETFs to
Buy Right Now

Get up to 5X the yields of traditional income plays.

Get Access to the Report, 100% FREE


img
previous article

A stock market crash could be caused by an unexpected calamitous event, known as a “black swan” in the investment world, spurring a huge sell-off to end the current bull run that began in March 2009 and ranks as the longest and biggest in history. Traditionally, a stock market crash is a sudden plunge during a single trading day or several days that is much more severe than a correction, which occurs with a drop of mor

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE