Today Direxion rolled out a fund offering 300% exposure to the same index that underlies the $2.5 billion Global X Robotics & Artificial Intelligence ETF (BOTZ). The Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 3X Shares (UBOT), like BOTZ, tracks the Indxx Global Robotics and Artificial Intelligence Thematic Index.
UBOT comes with an expense ratio of 1.22% and lists on the NYSE Arca.
The underlying index is weighted by market capitalization and targets companies involved in the development and production of robotics and artificial intelligence. It includes approximately 30 securities.
BOTZ competes with the ROBO Global Robotics and Automation Index ETF (ROBO), which launched in 2013 and has fallen slightly behind in the assets race, with $2.3 billion. ROBO has an expense ratio of 0.95%, but BOTZ only charges 0.68%. The launch of a complementary leveraged ETF could give BOTZ another edge over its competitor.
Contact Heather Bell at [email protected]